News Briefs

✦ Molina Healthcare, Inc. on Sept. 29 said it entered into a definitive agreement to acquire substantially all of the assets of New York Medicaid managed care organization Affinity Health Plan for approximately $380 million. Affinity serves roughly 284,000 Medicaid members in New York City, Westchester, Orange, Nassau, Suffolk and Rockland counties and has annual premium revenue of approximately $1.3 billion. Subject to regulatory approvals and closing conditions, the transaction is expected to close in the second quarter of 2021 and to be immediately accretive to adjusted earnings per share, stated Molina. Visit https://bit.ly/3jfdxBi.

✦ Senate Republicans this month are rushing to replace the late Justice Ruth Bader Ginsburg with President Donald Trump’s nominee Amy Coney Barrett, which could result in the Supreme Court striking down the Affordable Care Act (ACA). After the Fifth Circuit Court of Appeals agreed last year that the law’s individual mandate is unconstitutional, the Supreme Court on Nov. 10 is scheduled to hear oral arguments in California v. Texas and consider whether the entire law should be invalidated, which would effectively end Medicaid expansion. “With the passing of…Ginsburg, we now see increased risk around the sustainability of the ACA in its current form,” wrote Barclays analyst Steve Valiquette on Sept. 21. Analysts agreed that Centene Corp. has the most exposure to a fully invalidated ACA, given the firm’s strong concentration in Medicaid and the individual market.

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