Molina to Pay $60M to Acquire Cigna's Texas Medicaid-MMP

Molina said it will fund the purchase with cash on hand, and the deal is expected to be finalized by the end of 2021.

Molina Healthcare, Inc. will spend $60 million to buy Cigna Corp.'s Texas Medicaid and Medicare-Medicaid Plan, the two companies announced Thursday.

Cigna's Texas Medicaid and MMP health plan serves 48,000 Medicaid beneficiaries in the Hidalgo, Tarrant, and Northeast service areas, and 2,000 MMP members in the Hidalgo service area, with full year 2020 premium revenues of $1 billion.

Long Beach, California-based Molina said it will fund the purchase with cash on hand, and the deal is expected to be finalized by the end of the 2021, pending regulatory approval.

"Acquiring Cigna's Texas Medicaid business provides us with a stable base of membership and revenue that will deepen Molina’s service offerings in Texas, allowing us to meet the needs of thousands of additional Medicaid and MMP members," Molina said in a media release. "The transaction demonstrates continued execution and is nicely representative of our growth strategy."

Bloomfield, Connecticut-based Cigna said in a statement: "We are proud of the positive impact we have made on customer lives through our Texas Medicaid business, and are confident that Molina will build on our work to improve their health, well-being, and peace of mind. We remain fully committed to the state of Texas, and look forward to continuing to bring affordable, predictable, and simple health care solutions to the millions of Texans we serve through our Medicare, Commercial, and Health Services businesses."