Cigna is selling its Medicaid contracts in Texas to Molina Healthcare for $60 million, according to an April 22 news release.
Under a definitive agreement, Cigna's Texas Medicaid and dual Medicare-Medicaid plans will fold into Molina, adding about 50,000 Medicaid members to Molina's rapidly growing managed care business.
The Texas Medicaid plans brought in $1 billion in revenue during 2020.
Cigna and Molina expect the deal to close in the second half of 2021, pending regulatory approvals.