Molina Healthcare to Buy Chicago-Based Medicaid MCO

The Long Beach, California–based insurer will serve NextLevel Health Partners' 50,000 members in northern Illinois.

Molina Healthcare announced Monday morning that it entered into a definitive agreement to purchase NextLevel Health Partners Inc., a Chicago-based Medicaid managed care organization. 

Upon completion of the deal, the Long Beach, California–based insurer will serve NextLevel Health Partners' 50,000 members in northern Illinois.

The deal is expected to close in early 2020, according to Molina's filing with the Securities and Exchange Commission. 

Molina's stock responded positively to the news, trading up 1.2% during the early morning session. 

Related: Revenues, Income, and EPS Fall for Molina Healthcare

The NextLevel deal is the latest move by Molina to acquire a Medicaid plan, as the company announced plans in October to acquire YourCare Health Plan, a Buffalo, New York–based health plan.

Molina expects the deal to add 46,000 Medicaid members.

Related: Molina to Buy New York Medicaid Plan