Blue Shield of California targets Medicaid growth with new deal
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 signed a definitive agreement to buy Care1st Health Plan for an undisclosed amount of cash. The deal is expected to close in the second half of 2015.
Blue Shield covers 3.4 million Californians, mostly in the commercial market, but does not have a Medicaid plan. Care1st, however, has a large Medicaid business that is expanding rapidly. Medicaid represented 68% of Care1st’s revenue as of Sept. 30, according to documents filed with the state.