San Francisco-based Blue Shield of California, an independent member of the Blue Cross Blue Shield Association, has entered into a definitive agreement to acquire Care1st Health Plan, a managed care company based in Los Angeles County.
As of November 30, Care1st had 473,000 Medicaid members, 46,000 Medicare members and 5,300 members dually eligible for both programs.
"We are excited to be joining Blue Shield, as our members will greatly benefit from Blue Shield's well-established brand and extensive knowledge of the California healthcare market," said Anna Tran, CEO of Care1st Health Plan.
Medi-Cal, California's version of the federal Medicaid program, has more than 11 million enrollees, and according to Blue Shield of California President and CEO Paul Markovich, the insurer can fulfill its nonprofit "access and affordability mission by serving this population."
The deal is subject to regulatory approvals and is expected to close in the second half of next year.
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