Wauwatosa-based My Choice Wisconsin (MCW), a Medicaid managed care organization serving customers throughout the state, has been acquired by Long Beach, California-based Molina Healthcare, Inc. Molina Healthcare will pay approximately $150 million, net of expected tax benefits and required regulatory capital, to acquire substantially all the assets of MCW.
Molina Healthcare is a Fortune 500 company that provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through its locally operated health plans, Molina Healthcare serves approximately 5.1 million members. As of May 2022, MCW served over 44,000 customers, delivering approximately $1 billion in revenue for the 12 months ending March 31, 2022.
“The addition of My Choice Wisconsin to Molina’s expanding footprint is not only complementary to our existing Medicaid business in Wisconsin, but also representative of our strategic growth initiatives,” said Joe Zubretsky, president and CEO of Molina Healthcare. “Today’s announcement demonstrates our continuing success acquiring value enhancing revenue streams at attractive valuations.”
The acquisition allows Molina Healthcare to bring additional scale to its growing managed long term services and supports (MLTSS) franchise and existing Wisconsin core Medicaid business. The transaction is expected to be immediately accretive to Molina’s adjusted earnings per share. Molina intends to fund the purchase with cash on hand. The deal is expected to close this year.