LONG BEACH, Calif. & WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Apr. 19, 2016--
Molina Healthcare, Inc. (NYSE: MOH) and Universal American Corp. (NYSE:
UAM) jointly announced today that they entered into a definitive
agreement in which Molina will acquire Universal American's Total Care
Medicaid plan in upstate New York.
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Total Care is a prepaid health services plan that provides health care
coverage to approximately 39,000 members under the Medicaid and Child
Health Plus programs in the three upstate New York counties of Cortland,
Onondaga and Tompkins. Under the terms of the agreement, Molina will
acquire all the outstanding equity interests of Today's Options of New
York, Inc., which operates the Total Care Medicaid plan, for a purchase
price of $41.3 million, subject to closing date balance sheet
adjustments. Molina will fund the transaction with available cash. The
transaction is subject to regulatory approvals and other conditions and
is expected to close in the third quarter of 2016.
"We look forward to participating in New York's Medicaid managed care
program," said Dr. J. Mario Molina, president and chief executive
officer of Molina Healthcare, Inc. "This transaction expands our
footprint into the top five largest Medicaid
markets across the country
and serves to further our strategy of continued geographic
diversification. Over the next several months we will work closely with
the
New York State Department of Health, local providers and community
organizations to continue fulfilling our mission of providing access to
high-quality care."
Richard A. Barasch, chairman and chief executive officer of Universal
American, commented, "With the sale of our Total Care Medicaid plan, we
can better concentrate our efforts on our Medicare Advantage and
Medicare ACO businesses. We improved the operations of the Total Care
plan during our ownership and believe that Molina's extensive experience
in Medicaid will allow for continued improvements to the plan for the
benefit of its members."
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 3.9 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 Universal American Corp.
Through its family of
healthcare companies, Universal American provides health benefits to
people covered by Medicare and Medicaid. The company is dedicated to
working collaboratively with healthcare professionals, especially
primary care physicians, in order to improve the health and well-being
of those they serve while reducing healthcare costs. More information
about Universal American is available at universalamerican.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains "forward-looking
statements" regarding the proposed transaction between Molina Healthcare
and Universal American. 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 timely closing of the
transaction, including the need to obtain regulatory approvals and other
third party consents; any conditions imposed on the parties by
regulators in connection with consummating the transaction described
herein; Total Care's ability to maintain relationships with providers,
employees and other stakeholders following the announcement of this
transaction; the ability of the parties to satisfy other conditions to
closing the transaction described herein; the integration of the
operations and employees of Total Care's business into Molina
Healthcare's business; the retention and renewal of Total Care's
business contracts; Total Care's future financial condition and
operating results; 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 the parties are subject is provided in greater
detail in their respective periodic reports and filings with the
Securities and Exchange Commission, including each party's most recent
Annual Report on Form 10-K. These reports can be accessed under the
investor relations tab of each party's website or on the SEC's website
at sec.gov.
Given these risks and uncertainties, neither party can give 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 each party cautions
investors not to place undue reliance on these statements. All
forward-looking statements in this release represent the parties'
judgment as of the date hereof, and each party disclaims any obligation
to update any forward-looking statements to conform the statement to
actual results or changes in a party's expectations that occur after the
date of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160419006732/en/
Source: Molina Healthcare, Inc.
Molina Healthcare, Inc.
Investor Relations:
Juan José
Orellana, 562-435-3666
or
Public Relations:
Sunny Yu,
562-901-1039
or
Universal American Corp.
Adam Thackery,
914-597-2939
Chief Financial Officer
