Molina Healthcare to Acquire Medicaid Assets of Columbia United Providers in the State of Washington

Molina Healthcare, Inc. (NYSE: MOH) and Columbia United Providers, Inc. (CUP) announced today that Molina Healthcare of Washington, Inc., a wholly owned subsidiary of Molina Healthcare Inc., has entered into a definitive agreement to acquire certain assets of CUP’s Medicaid business. As a part of the transaction, Molina Healthcare of Washington will receive the right to assume CUP’s Medicaid membership in the state of Washington, as well as certain other rights and assets related to the operation of the Medicaid business. Molina Healthcare of Washington will fund the transaction with available cash. Subject to regulatory approvals and the satisfaction of other closing conditions, the transaction is expected to close during the first quarter of 2016.

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“CUP has provided excellent service to Medicaid members in Clark County for more than 20 years. We are honored to welcome CUP members to Molina, and we look forward to carrying on their commitment to the Southwest Washington community and building upon our current relationships with providers throughout the region,” said Peter Adler, president of Molina Healthcare of Washington. “This proposed transaction allows Molina to better serve the growing Medicaid population, maintain continuity of care for CUP members, and further deepen our commitment to the Medicaid program in Washington.”

CUP provides coverage for medical services throughout the Southwest Region of Washington serving more than 55,000 Medicaid members in Clark County.

“The best way to meet the needs of our community, and to maximize CUP’s potential, is to join with the strengths and resources of a larger Medicaid specialist,” explained Cynthia Finter, interim CEO of CUP. “Molina’s track record for quality and innovation, as well as its focus on serving those who qualify for government programs, will allow our members to receive expanded capabilities while we continue our history of service to our members and their providers. We are excited to work closely with Molina, the top Medicaid plan in the state of Washington and one of the leading national plans.”

About Molina Healthcare of Washington, Inc.

Molina Healthcare of Washington was established in 1985 and serves nearly 570,000 members statewide. Molina contracts with the Washington State Health Care Authority through Apple Health, the state Medicaid program, to serve Medicaid members throughout the state. The Company also manages a Medicare Special Needs Plan and participates in Washington Health Exchange, the state based Marketplace, in several counties across the state.

About Molina Healthcare, Inc.

Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through our locally operated health plans in 11 states across the nation and in the Commonwealth of Puerto Rico, Molina serves approximately 3.5 million members. Dr. C. David Molina founded our company in 1980 as a provider organization serving low-income families in Southern California. Today, we continue his mission of providing high quality and cost-effective health care to those who need it most. For more information about Molina Healthcare, please visit our website at molinahealthcare.com.

About Columbia United Providers, Inc.

Founded in 1994, Columbia United Providers, Inc. is a health plan, committed to providing coverage for high quality care and services for the community. More information about Columbia United Providers is available at cuphealth.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains “forward-looking statements” regarding the proposed transaction between Columbia United Providers, Inc. and Molina Healthcare of Washington, Inc. All forward-looking statements are based on current expectations that are subject to numerous risk factors that could cause actual results to differ materially. Such risk factors include, without limitation, risks related to: the satisfaction or waiver of closing conditions for the transaction, including the receipt of regulatory approvals; successfully transitioning and integrating Columbia United Providers’ members into Molina Healthcare of Washington; attrition in membership pending the completion of and following the transition; maintaining provider relations; accurately estimating medical costs with respect to this population; the receipt of a contract award from the Washington State Health Care Authority’s RFP process for Clark and Skamania Counties; and the possibility that the transaction will not be completed on a timely basis or at all. Additional information regarding the risk factors to which Molina Healthcare is subject is provided in greater detail in its periodic reports and filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. These reports can be accessed under the investor relations tab of Molina Healthcare’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, Molina Healthcare can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or events projected or contemplated by its forward-looking statements will in fact occur, and Molina Healthcare cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent Molina Healthcare’s judgment as of the date hereof, and Molina Healthcare disclaims any obligation to update any forward-looking statements to conform the statement to actual results or changes in its expectations that occur after the date of this release.

Contacts:

Molina Healthcare, Inc.
Juan José Orellana, 562-435-3666
Investor Relations
or
Laura Hart, 562-506-9208
Public Relations
or
Columbia United Providers
Tim Strickland, 615-330-5290
Media Relations
or
Jeremy Rush, 615-255-3967
Media Relations

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