Advocates Urge State To Reject Proposed ConnectiCare Acquisition

To protect Connecticut's Medicaid population, the state insurance department should reject a Delaware corporation's attempt to buy ConnectiCare, a group of Connecticut agencies and concerned residents urged in testimony Tuesday.

The Connecticut Insurance Department held a public hearing on Molina Healthcare's intent to buy ConnectiCare, which Molina applied to do last summer. The proposed purchase must be approved by the insurance department and a public hearing is part of that process.

"We write to oppose the proposal to allow Molina Healthcare, one of the largest Medicaid managed care companies in the country, to purchase ConnectiCare in CT and thus enroll health consumers on the CT Health Insurance Exchange, AHCT, given its poor track record throughout the country in administering both Medicaid and Medicare plans," reads the testimony signed by a group of advocates including The Arc CT, the Connecticut Citizen Action Group, AgingCT, and several others.

If the state does not reject the deal, it should at minimum include a specific condition that Molina not be allowed to contract to provide any services to any part of the Medicaid population, the advocates said.

"CT should avoid allowing Molina to get involved in providing health insurance to any part of the state's population," the advocates said in their statement. "No CT residents' access to healthcare should be placed under the control of this company."

In testimony to support its purchase application, Mark R. Margiotta, a senior vice president at Molina Healthcare, said the company's expertise is expected to translate into "operational excellence, enhancing the reliability and quality" of ConnectiCare's services.

"ConnectiCare's brand and health products are well-established in the market and provide a solid foundation to enhance Molina's ability to serve communities and improve access to comprehensive health care services," Margiotta wrote. "The Closing of the Proposed Acquisition will mark a significant milestone in Molina's journey toward becoming a leading health care provider in the region and on state exchanges."

Wherever insurance companies have taken over the management of care for Medicaid enrollees as "Managed Care Organizations," care has been restricted and promised savings have not materialized because of high administrative costs, the health advocates said in their statement.

EmblemHealth, the current owner of ConnectiCare, said entering into an agreement with Molina will support ConnectiCare's growth.

"We believe Molina's commitment to delivering on the promise of the Affordable Care Act, bringing coverage to so many Americans through the federal and state exchanges, makes it the ideal partner to take on ConnectiCare's mission," EmblemHealth CEO Karen Ignagni said in a news release announcing the agreement in July 2024.