Molina Healthcare Completes Acquisition of the Total Care Medicaid Plan in Upstate New York from Universal American | Business Wire

Molina Healthcare Completes Acquisition of the Total Care Medicaid Plan in Upstate New York from Universal American | Business Wire

LONG BEACH, Calif. & WHITE PLAINS, N.Y.–(BUSINESS WIRE)–Molina Healthcare, Inc. (NYSE: MOH) and Universal American Corp. (NYSE:

UAM) jointly announced today that Molina has completed its acquisition

of Universal American’s Total Care Medicaid plan. As a result,

approximately 38,000 Total Care Medicaid members will now be a part of

Molina Healthcare.

“We are looking forward to welcoming and sharing our care model with our

newest members in New York,” said J. Mario Molina, MD, president and

chief executive officer of Molina Healthcare, Inc. “With the completion

of this acquisition, Molina now operates health plans in the five

largest Medicaid markets in the country and we are proud to continue

carrying out our mission of providing access to high-quality health care

to people receiving government assistance as we’ve done for more than 35


Total Care is a prepaid health services plan that provides health

insurance coverage in New York. Total Care covers approximately 38,000

members of the Medicaid Managed Care, Health and Recovery Plans (HARP)

and Child Health Plus (CHP) programs in four counties: Cortland,

Onondaga, Oswego and Tompkins. Under the terms of the agreement, Molina

has acquired all the outstanding equity interests of Today’s Options of

New York, Inc., which operates the Total Care Medicaid plan.

“Total Care has a long history serving the central New York community,

and we will continue to work closely with the New York State Department

of Health, local providers and community organizations to serve our

members, but now as part of the Molina Healthcare extended family,” said

Colleen Schmidt, president of Total Care. “We’re confident that this

will be a seamless transition given Molina’s focus on government health

care assistance programs. Molina shares a similar mission and values

with Total Care, and we are excited to tap into the knowledge,

experience and resources that Molina brings.”

Richard A. Barasch, chairman and chief executive officer of Universal

American, commented, “With the sale of our Total Care Medicaid plan, we

can better concentrate our efforts on our Medicare Advantage and

Medicare ACO businesses. We believe that Molina’s extensive experience

in Medicaid will allow for continued improvements to the plan for the

benefit of its members. We want to thank all the Total Care employees

for their dedication, professionalism and hard work.”

About Molina Healthcare

Healthcare, Inc., a FORTUNE 500 company, provides managed health care

services under the Medicaid and Medicare programs and through the state

insurance marketplaces. Through our locally operated health plans in 12

states across the nation and in the Commonwealth of Puerto Rico, Molina

currently serves approximately 4.3 million members. Dr. C. David Molina

founded our company in 1980 as a provider organization serving

low-income families in Southern California. Today, we continue his

mission of providing high quality and cost-effective health care to

those who need it most. For more information about Molina Healthcare,

please visit our website at

About Universal American Corp.

its family of healthcare companies, Universal American provides health

benefits to people covered by Medicare. The company is dedicated to

working collaboratively with healthcare professionals, especially

primary care physicians, in order to improve the health and well-being

of those they serve while reducing healthcare costs. More information

about Universal American is available at

Safe Harbor Statement under the Private Securities Litigation

Reform Act of 1995: This press release contains “forward-looking

statements” regarding the transaction between Universal American Corp.

and Molina Healthcare, Inc. All forward-looking statements are based on

current expectations that are subject to numerous risk factors that

could cause actual results to differ materially. Such risk factors

include, without limitation, risks related to: the ability of Today’s

Options of New York, Inc. (“TONY”) to maintain relationships with

customers and employees following the announcement of this transaction;

the integration of the operations and employees of TONY into Molina

Healthcare’s business; the retention and renewal of TONY’s business

contracts; synergies from the proposed transaction; and TONY’s future

financial condition and operating results. Additional information

regarding the risk factors to which the parties are subject is provided

in greater detail in their respective periodic reports and filings with

the Securities and Exchange Commission, including each party’s most

recent Annual Report on Form 10-K. These reports can be accessed under

the investor relations tab of each party’s website or on the SEC’s

website at

Given these risks and uncertainties, neither party can give assurances

that its forward-looking statements will prove to be accurate, or that

any other results or events projected or contemplated by its

forward-looking statements will in fact occur, and each party cautions

investors not to place undue reliance on these statements. All

forward-looking statements in this release represent the parties’

judgment as of the date hereof, and each party disclaims any obligation

to update any forward-looking statements to conform the statement to

actual results or changes in a party’s expectations that occur after the

date of this release.