Crain's Chicago Business Staff January 06,
2020 10:40 AM 16 MINUTES AGO
Molina Healthcare said today that it would buy
Chicago-based Medicaid managed care plan NextLevel Health for about $50
million.
The deal gives Long Beach, Calif.-based Molina
the right to serve more than 50,000 Medicaid and other members in Cook County,
according to a statement. NextLevel is one of two plans that serves Medicaid
managed care members only in Cook County while Molina has Medicaid managed care
members statewide.
Molina's purchase of NextLevel would leave the
Medicaid managed care program with with five insurance companies, down from
seven in 2018 and 12 before that. The proposed merger of Centene and WellCare
Health Plans would leave the state's Medicaid managed care program with only
four insurers.
NextLevel had 54,554 Medicaid managed care
members in October, according to the most recent data from the Illinois
Department of Healthcare & Family Services, which oversees the program.
With the new members, Molina would go from having 10 percent of the state's Medicaid
managed care market to 12.6 percent.
NextLevel is run by Dr. Cheryl Whitaker, a
longtime health care executive whose husband, Dr. Eric Whitaker, is known for
his friendship with former President Barack Obama. It's one of six private
health insurers awarded state contracts to administer Medicaid benefits under a
managed care program intended to improve care and save money.
"We are delighted to expand our presence in
Illinois as the state's higher acuity populations skew toward Molina's
strengths," Pam Sanborn, president of Molina Healthcare of Illinois, said
in the statement.
"NextLevel Health's community-based
approach combines a culturally sensitive lens and the recognition of social
determinants of health to provide Medicaid members access to quality
care," Dr. Cheryl Whitaker said in the statement. "We are proud to
join Molina and continue to positively impact our communities."
Publicly traded Molina is paying about $50
million in cash for NextLevel Health, "net of certain tax benefits."
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