Two large Medicaid managed-care deals moved forward. Independence Blue Cross now holds a majority stake in the AmeriHealth Mercy Family of Cos. after closing a $170 million deal announced in August to buy out Mercy Health Plan's shares in the Medicaid managed-care provider.
Late News: Independence Blue Cross, AmeriGroup deals move forward
Blue Cross and Blue Shield of Michigan will provide additional capital and hold a minority stake. Mercy Health Plan previously held a 50% stake in AmeriHealth Mercy, one of the country's largest Medicaid companies.
The company provides services in 11 states, not including Michigan, to more than 4 million members in Medicaid, Medicare and state children's insurance programs. Meanwhile, the Federal Trade Commission granted antitrust clearance to the $85 million deal by AmeriGroup to acquire Health Plus, a Medicaid managed-care plan, from Lutheran Medical Center in New York.
AmeriGroup, a publicly traded insurer based in Virginia Beach, Va., said Health Plus' 320,000 enrollees will give the company one of the largest New York Medicaid managed-care plans.
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