SYRACUSE, N.Y. – Molina Healthcare, one of the nation’s biggest Medicaid managed care companies that came to Syracuse three years ago, is expanding across upstate New York.
Molina is buying YourCare Health Plan, which serves about 46,000 Medicaid members in seven counties in the Finger Lakes region and Western New York.
Molina entered New York in 2016 when it bought Total Care, a Syracuse-based Medicaid managed care plan for $41.3 million. That acquisition gave Molina more than 35,000 members in Onondaga, Oswego, Cortland and Tompkins counties.
Molina’s New York headquarters office is in North Syracuse.
Molina, a California-based public company that trades on the New York Stock Exchange, said it will pay about $40 million in cash for YourCare. YourCare is a nonprofit subsidiary of Monroe Plan for Medical Care. The health plan will generate premium revenue of about $285 million this year, according to Molina.
Molina has 3.4 million members nationwide.
“This agreement represents an exciting opportunity to build upon our existing operations in New York and expand into new services areas,” Colleen Schmidt, president of Molina Healthcare of New York, said in a prepared statement.
Molina officials declined to answer questions about what effect the expansion will have on its operation in North Syracuse.
Molina expects to complete the acquisition early next year.
Medicaid is government-sponsored health insurance for the poor and disabled.
Most Central New Yorkers on Medicaid are enrolled in Medicaid managed care plans. The state, which administers Medicaid, contracts with private insurers to run these plans. They coordinate care for members who see doctors and other providers in their networks. The plans are paid a fixed amount per enrollee.