Molina Healthcare, Inc. and HAP Midwest Health Plan, Inc. (HAP Midwest) jointly announced today that Molina Healthcare of Michigan, Inc., a wholly owned subsidiary of Molina Healthcare, Inc., has entered into a definitive agreement to acquire certain assets of the Medicaid and MIChild businesses of HAP Midwest. As a part of the transaction, Molina Healthcare of Michigan will receive the right to assume certain assets related to HAP Midwest’s Medicaid and MIChild businesses in Regions 9 and 10 of the State of Michigan and transition those members to Molina Healthcare of Michigan. HAP Midwest currently arranges health care services for approximately 85,000 Medicaid and MIChild members in these two regions, which are composed of Livingston, Macomb, Oakland, Washtenaw and Wayne counties. Molina Healthcare will fund the transaction with available cash on hand. Subject to regulatory approvals and the satisfaction of other conditions, the closing of the transaction is expected to coincide with the start of Molina’s new managed care contract with the State of Michigan for the Comprehensive Health Care Program on January 1, 2016.
“Although we are disappointed by the state’s decision to reduce the number of Medicaid plans in Regions 9 and 10, we are grateful for the opportunity to transition our members to Molina, a quality plan with a similar commitment to the Detroit market and a good working relationship with Henry Ford Health System,” said Mary Ann Tournoux, Interim President and CEO, HAP Midwest Health Plan. “HAP Midwest will continue to provide services to Medicaid members in Region 6, as well as those enrolled in the dual-eligible demonstration product (MI Health Link) in Wayne and Macomb counties.”
“We are pleased to welcome HAP Midwest’s Medicaid and MIChild members in Regions 9 and 10 to the Molina family,” said Stephen Harris, president of Molina Healthcare of Michigan. “This agreement with HAP Midwest will provide our new members with a seamless transition as the state begins a new managed care contract on January 1, 2016. It also demonstrates our commitment to Medicaid and the local provider community as we deepen our relationship with the Henry Ford Health System relative to serving Medicaid members. We look forward to working with HAP Midwest and the Department of Health and Human Services as we continue our mission of providing quality health care to people receiving government assistance.”