Molina Healthcare to buy Bright Health Group's California Medicare business

Molina Healthcare Inc. (MOH) on Friday announced a deal to buy Bright Health Group Inc.'s (BHG) California Medicare Advantage business, Brand New Day and Central Health Plan of California, for a purchase price of about $510 million, net of tax benefits. The price amounts to 28% of expected 2023 premium revenue of $1.8 billion, Molina said in a release. The Medicare Advantage business offers products in 23 California counties, significantly overlapping with Molina's Medicaid business in the state, and had about 125,000 members as of March 31, Molina said. The transaction, which is subject to federal and state regulatory approval, is expected to close early next year. Molina shares are down 10.7% in the year to date, while Bright Health stock is down 79%. Bright Health shares jumped 24% premarket on Friday.

-Eleanor Laise

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

06-30-23 0843ET

Copyright (c) 2023 Dow Jones & Company, Inc.