Molina Healthcare is growing its Medicaid business in the Southeast. The publicly traded health insurer has acquired the Medicaid assets of First Coast Advantage, a health plan owned by University of Florida Health Jacksonville.
Financial terms were not disclosed. Molina, headquartered in Long Beach, Calif., initially announced the acquisition of First Coast Advantage's Medicaid business in August.
The deal will add about 63,000 Florida Medicaid enrollees to Molina's rolls. Officials said people will not lose their doctor or hospital networks.
The insurer had 98,000 Florida Medicaid beneficiaries as of Sept. 30 and more than 2.4 million total covered lives across all states and plans. Most recently, in August, Molina boosted its Florida Medicaid membership by 11,000 people when it paid $7.5 million for the Medicaid business of Healthy Palm Beaches, an HMO based in Palm Springs, Fla.
Molina pursued the deal for geographical and administrative reasons, said David Pollack, president of Molina Healthcare of Florida, in an interview. The company already manages care for people in First Coast Advantage's provider network, which spans the state's east coast, and adding more members builds economies of scale in the region.
“It gives us a chance to expand our quality programs and our high-touch model throughout the state,” Pollack said.
UF Health Jacksonville created First Coast Advantage in 2006 as part of the state's Medicaid managed-care pilot program. Florida, like several other states, has aggressively moved to private HMOs and capitated payment rates. State officials say the strategy will help contain Medicaid costs.
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