Molina Healthcare entered into a definitive agreement to acquire Passport Health Plan's Medicaid and dual eligible special needs plan assets.
The transaction is valued at about $20 million, in addition to contingent consideration that is payable in 2021 based on how Molina performs in Kentucky's open enrollment period. Molina won a contract to manage Medicaid services in the state.
Under the transaction, Molina will acquire the Passport name and will employ about 500 Kentucky-based Passport and Evolent Health employees. Evolent became a majority holder of Passport when it acquired 70 percent of its stake in 2019.
The transaction is expected to close before the end of 2020, pending regulatory approvals.
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