Molina Healthcare to Acquire Medicaid and MIChild Assets of HAP Midwest Health Plan in Michigan
November 24 2015 - 4:15PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and HAP Midwest Health
Plan, Inc. (HAP Midwest) jointly announced today that Molina
Healthcare of Michigan, Inc., a wholly owned subsidiary of Molina
Healthcare, Inc., has entered into a definitive agreement to
acquire certain assets of the Medicaid and MIChild businesses of
HAP Midwest. As a part of the transaction, Molina Healthcare of
Michigan will receive the right to assume certain assets related to
HAP Midwest’s Medicaid and MIChild businesses in Regions 9 and 10
of the State of Michigan and transition those members to Molina
Healthcare of Michigan. HAP Midwest currently arranges health care
services for approximately 85,000 Medicaid and MIChild members in
these two regions, which are composed of Livingston, Macomb,
Oakland, Washtenaw and Wayne counties. Molina Healthcare will fund
the transaction with available cash on hand. Subject to regulatory
approvals and the satisfaction of other conditions, the closing of
the transaction is expected to coincide with the start of Molina’s
new managed care contract with the State of Michigan for the
Comprehensive Health Care Program on January 1, 2016.
“Although we are disappointed by the state’s decision to reduce
the number of Medicaid plans in Regions 9 and 10, we are grateful
for the opportunity to transition our members to Molina, a quality
plan with a similar commitment to the Detroit market and a good
working relationship with Henry Ford Health System,” said Mary Ann
Tournoux, Interim President and CEO, HAP Midwest Health Plan. “HAP
Midwest will continue to provide services to Medicaid members in
Region 6, as well as those enrolled in the dual-eligible
demonstration product (MI Health Link) in Wayne and Macomb
counties.”
“We are pleased to welcome HAP Midwest’s Medicaid and MIChild
members in Regions 9 and 10 to the Molina family,” said Stephen
Harris, president of Molina Healthcare of Michigan. “This agreement
with HAP Midwest will provide our new members with a seamless
transition as the state begins a new managed care contract on
January 1, 2016. It also demonstrates our commitment to Medicaid
and the local provider community as we deepen our relationship with
the Henry Ford Health System relative to serving Medicaid members.
We look forward to working with HAP Midwest and the Department of
Health and Human Services as we continue our mission of providing
quality health care to people receiving government assistance.”
About Molina Healthcare of Michigan, Inc.
Molina Healthcare of Michigan currently operates Medicaid and
Medicare health plans with total membership of approximately
340,000 as of September 2015. Additionally, Molina Healthcare of
Michigan is a certified Qualified Health Plan issuer on the
Michigan Health Insurance Exchange in the non-group health
insurance market in Wayne, Oakland and Macomb counties.
About Molina Healthcare, Inc.
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed
health care services under the Medicaid and Medicare programs and
through the state insurance marketplaces. Through our locally
operated health plans in 11 states across the nation and in the
Commonwealth of Puerto Rico, Molina serves approximately 3.5
million members. Dr. C. David Molina founded our company in 1980 as
a provider organization serving low-income families in Southern
California. Today, we continue his mission of providing high
quality and cost-effective health care to those who need it most.
For more information about Molina Healthcare, please visit our
website at molinahealthcare.com.
About HAP Midwest Health Plan
HAP Midwest Health Plan, Inc. is a wholly owned subsidiary of
Health Alliance Plan (HAP) and the Henry Ford Health System based
in southeastern Michigan. The company became licensed in 1998 and
was accredited by the National Committee for Quality Assurance in
2000.
About HAP
HAP is a Michigan-based health and wellness company that
provides coverage to more than 680,000 members in six distinct
product lines: Group, individual, Medicare, Medicaid, self-funded
and network leasing. For over 50 years, HAP has partnered with
leading doctors, hospitals, employers and community organizations
to enhance the health and well-being of the lives we touch. To
learn more, go to choosehap.org.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains
“forward-looking statements” regarding the proposed transaction
between HAP Midwest Health Plan, Inc. and Molina Healthcare of
Michigan, Inc. All forward-looking statements are based on current
expectations that are subject to numerous risk factors that could
cause actual results to differ materially. Such risk factors
include, without limitation, risks related to: the satisfaction or
waiver of closing conditions for the transaction, including the
receipt of regulatory approvals; successfully transitioning and
integrating HAP Midwest Health Plan’s members into Molina
Healthcare of Michigan; a reversal of the decision by the State of
Michigan not to award a new contract for the Comprehensive Health
Care Program to HAP Midwest Health Plan for Regions 9 and 10;
attrition in membership pending the completion of and following the
transition; maintaining provider relations; accurately estimating
medical costs with respect to this population; and the possibility
that the transaction will not be completed on a timely basis or at
all. Additional information regarding the risk factors to which
Molina Healthcare is subject is provided in greater detail in its
periodic reports and filings with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K.
These reports can be accessed under the investor relations tab of
Molina Healthcare’s website or on the SEC’s website at sec.gov.
Given these risks and uncertainties, Molina Healthcare can give no
assurances that its forward-looking statements will prove to be
accurate, or that any other results or events projected or
contemplated by its forward-looking statements will in fact occur,
and Molina Healthcare cautions investors not to place undue
reliance on these statements. All forward-looking statements in
this release represent Molina Healthcare’s judgment as of the date
hereof, and Molina Healthcare disclaims any obligation to update
any forward-looking statements to conform the statement to actual
results or changes in its expectations that occur after the date of
this release.
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version on businesswire.com: http://www.businesswire.com/news/home/20151124006057/en/
Molina Healthcare, Inc.Investor Relations:Juan José
Orellana, 562-435-3666orPublic Relations:Leigh Woodward,
562-233-4532orHAP Midwest Health Plan, Inc.Susan
Schwandt, 248-443-1076Cell: 313-505-3937
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