News Headlines Article

Blue Shield of California makes sizable Medicaid-focused acquisition; others could follow
Modern Healthcare

A major California health insurer wants to ensure it gets a piece of the growing Medicaid market as the state expands Medicaid eligibility to more low-income residents.Blue Shield of California, one of the four largest insurance carriers in the state by revenue (PDF), signed a definitive agreement Monday to buy Care1st Health Plan for an undisclosed amount of cash. The deal is expected to close in the second half of 2015, pending regulatory approval. It could prove a harbinger of more such deals in other Medicaid expansion states, one consultant forecasted.