Recently, Molina Healthcare of New Mexico, a subsidiary of
Molina Healthcare, Inc.
), inked a definitive agreement to assume Lovelace Community
Health Plan's contract for the New Mexico Medicaid Salud!
Program. The transaction is expected to close by Aug 1, 2013,
subject to customary closing conditions.
Upon the completion of the transaction, all Medicaid members
of Lovelace Community Health Plan will become the members of
Molina's Medicaid program. Molina will provide the members with
Medicaid services and benefits. However, members would still have
access to Lovelace's providers and medical staff as well as
Lovelace Retail Pharmacies and Lovelace's network of hospitals.
The non-Medicaid members of Lovelace will not be affected
by the transaction.
The agreement will facilitate the transition of Lovelace's
Medicaid members to the Centennial Care program of New Mexico, as
Molina is one of the four managed care organizations selected
under the program. The Centennial Care program is the new name
for New Mexico's Medicaid program, in effect from Jan 1,
Only four managed care organizations were selected under the
program to provide healthcare to about 700,000 New Mexicans.
Molina Healthcare of New Mexico has the highest National
Committee for Quality Assurance (NCQA) ranking among all the
Medicaid plans in New Mexico.
Molina's selection in the Centennial Care program is expected
to significantly boost its Medicaid members. This contract with
Lovelace is a result of the company's selection for the program,
as the Medicaid members of Lovelace will now be able to continue
with Molina once the program is implemented, instead of having to
choose a new Medicaid provider. Thus, the members will continue
to receive high quality care without any disruption in
Lovelace currently provides Medicaid services to about 84,000
members in New Mexico under the New Mexico Medicaid Salud! State
Coverage Insurance program. Thus, the agreement should
significantly boost Molina's Medicaid membership in the state,
which currently stands at 91,000. Lovelace's Medicaid members
will be notified about their transition to Molina through a
letter sent by both the companies.
Molina currently carries a Zacks Rank #1 (Strong Buy). Other
health maintenance organizations worth considering are
) - Zacks Rank #1 (Strong Buy),
Select Medical Holdings Corporation
) - Zacks Rank #2 (Buy) and
UnitedHealth Group Inc.
) - Zacks Rank #2 (Buy).
AETNA INC-NEW (AET): Free Stock Analysis
MOLINA HLTHCR (MOH): Free Stock Analysis
SELECT MEDICAL (SEM): Free Stock Analysis
UNITEDHEALTH GP (UNH): Free Stock Analysis
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