Elevance Health plans to acquire Centers Plan for Healthy Living, a New York-based Medicaid long-term care plan.
The company disclosed the transaction in a filing with the Securities and Exchange Commission on Feb. 21. Elevance Health expects the deal to close in the third quarter of 2024.
Centers Plan for Health Living is one of the largest long-term managed care plans in the state, with 53,000 members, according to an April 11 report from the Empire Center, a think tank. Elevance Health currently has 57,000 long-term care enrollees in the state.
In June 2023, New York Attorney General Letitia James filed a lawsuit against four nursing homes owned by Centers Plan for Healthy Living. The attorney general alleged the facilities had neglected residents and accused executives of improperly pocketing millions in Medicare and Medicaid dollars. Centers Plan for Healthy Living has denied the attorney general's allegations, according to the Empire Center.
Centers Plan for Healthy Living was awarded a $16 billion contract from the state to manage long-term care between 2022 and 2026. Elevance Health picked up a $13 billion contract for the same time period, according to the Empire Center.
Elevance Health acquired Integra Managed Care, another New York managed long-term care plan in 2021. It has also acquired several specialty care businesses in recent years.