Medica paid over $230M for majority stake in Wisconsin payer

Medica paid nearly $233 million in 2021 to buy a 55 percent stake in Madison, Wis.-based Dean Health Plan, according to the Star Tribune

Minnetonka, Minn.-based Medica, a nonprofit payer, first announced the deal in August.

The deal closed in December and allowed both payers to keep their brands and products. No changes in service are expected for members in the short term. 

Dean Health Plan has nearly 500,000 members across Wisconsin, Missouri, Illinois and Oklahoma. Medica serves about 1.5 million members.

The deal extended Medica's existing operations in Missouri and Wisconsin, while adding a few counties in Illinois near St. Louis, according to the Star Tribune.

Medica also began selling individual plans in 2022 in Phoenix and a Medicare plan in parts of Wyoming, bringing the payer's overall service area to 12 states.

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