Molina Healthcare to buy Connecticut insurer for $350M

Molina Healthcare, a California-based insurer, is purchasing ConnectiCare, a health insurance company in Connecticut, for $350 million.

In an announcement, Molina said the cost represents “25% of expected 2024 premium revenue of $1.4 billion,” adding that the acquisition will bring in new earnings from health insurance exchanges. 

While the agreement for the sale is final, it is subject to state and federal regulatory approval before closing. If approved, the acquisition will be completed in early 2025.

Founded in 1981, ConnectiCare serves 140,000 people in the state and its private insurance and Medicare plans are made available on both the Affordable Care Act insurance marketplace and the Connecticut insurance exchange, Access Health CT.

Molina said the acquisition “represents a strong strategic fit,” adding that ConnectiCare is “an established government business, recognized brand and a statewide provider network.” ConnectiCare is currently owned by EmblemHealth, a not-for-profit insurer based in New York City.

In the announcement, Molina President and CEO said the addition of ConnectiCare brings a “well-rounded government sponsored healthcare plan, and a new state, to our portfolio.”

Molina provides managed healthcare services for Medicaid and Medicare programs in 19 states. According to its website, it currently has 5.1 million members.

Chad Van Alstin Health Imaging Health Exec

Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.

Around the web

Compensation for heart specialists continues to climb. What does this say about cardiology as a whole? Could private equity's rising influence bring about change? We spoke to MedAxiom CEO Jerry Blackwell, MD, MBA, a veteran cardiologist himself, to learn more.

The American College of Cardiology has shared its perspective on new CMS payment policies, highlighting revenue concerns while providing key details for cardiologists and other cardiology professionals. 

As debate simmers over how best to regulate AI, experts continue to offer guidance on where to start, how to proceed and what to emphasize. A new resource models its recommendations on what its authors call the “SETO Loop.”