Health insurer HealthPlus of Michigan will sell its Medicaid business to Molina Healthcare
in an attempt to salvage the entire company, HealthPlus officials said Friday. The Michigan Department of Financial and Insurance Services sanctioned HealthPlus in March because the insurer was hemorrhaging millions of dollars and did not have enough cash in reserves to meet state requirements. The company’s medical claims were consistently exceeding premium revenue as it attracted sicker-than-average members. That same month, the CMS also suspended HealthPlus from enrolling new Medicare Advantage members as a result of not meeting state regulations. HealthPlus hopes divesting its Medicaid assets will allow it to keep its doors open.