UnitedHealthcare's absorption of Rocky Mountain Health Plans will undergo public scrutiny as the Colorado attorney general decides whether to green light the purchase, KJCT 8 reports.
Under the terms of the agreement announced in July, Minnetonka, Minn.-based UnitedHealthcare will invest an undisclosed amount in the nonprofit insurer, gaining access to RMHP's Medicaid market and its 300,000 rural customers. In addition, Grand Junction, Colo.-based RMHP will shift to a for-profit model and sell its $36.5 million stock to UnitedHealthcare while maintaining its brand, current healthcare provider agreements and management team.
"Our clear goal is to bring the resources of UnitedHealth to western Colorado and then share them via Rocky's established relationships," said Beth Soberg, UnitedHealthcare's president and CEO for Colorado and Wyoming, according to the report.
Previous reports stated that pending regulatory approval, UnitedHealthcare's acquisition of RMHP is expected to be completed by the end of 2016, reports The Denver Post.
More articles payer issues:
ACA developer wishes for 'stronger' individual mandate
Missouri insurance regulator orders public hearing for Anthem-Cigna deal
Humana to add 100 pharma-related jobs in Arizona