Healthcare DIVE June 30, 2023
Dive Brief:
- Molina Healthcare has agreed to buy struggling insurtech Bright Health’s Medicare Advantage business in California for approximately $510 million, net of certain tax benefits, the company announced Friday.
- The deal, which Molina expects to close in the first quarter of 2024, will completely exit Bright from the insurance business, allowing it to focus on consumer care products. Bright’s California plans, Brand New Day and Central Health Plan, operate in 23 counties and serve about 125,000 members.
- Molina expects the purchase will add $1.00 per share to new store embedded earnings. The insurer said the acquired plans have a 60% overlap with its Medicaid footprint in California, and are a “strong strategic fit” with its dually-eligible plan...