(LONG BEACH, CA) Molina Healthcare Inc., --an operator of health plans with approximately 200,000 members nationwide—announced today that it recently signed a Definitive Agreement to buy QualMed Washington Health Plan, a Washington health plan subsidiary of Foundation Health Systems Inc. (FHS)
Under the terms of the transaction, Molina will assume control of the health plan license and QualMed's Medicaid operations. QualMed's Medicaid product line covers more than 55,000 members, located mostly in the greater Seattle area and Spokane, through Washington's Healthy Options Medicaid Program.
Long Beach-based Molina Healthcare, Inc.—which owns full-service health plans in California, Utah and Michigan, specializes in providing health care coverage to Medicaid beneficiaries. The largest of the three health plans is in California—where it operates as Molina Healthcare of California.
"Our goal is to offer the same high level of quality care that our members have experienced for nearly two decades," says J. Mario Molina, MD, President of Molina Healthcare. "We have never wavered in our commitment to care for the underserved—an ideal that originated with my father and founder of our company, C. David Molina, MD."
"We plan to provide a seamless transition for QualMed members to Molina," adds George Goldstein, PhD., Executive Vice President, Health Care Operations of Molina Healthcare.
FHS also signed a Transition Agreement with PacifiCare of Washington facilitating QualMed's departure from the western Washington commercial market, and a separate Transition Agreement with Premera Blue Cross to facilitate QualMed's departure from the eastern Washington commercial market. FHS and QualMed plan to complete the transition from these commercial markets by April 2000.
