Minnetonka-based UnitedHealthcare is acquiring Rocky Mountain Health Plans, a health insurer based in Grand Junction, Colo., that's focused on the Medicaid market.
Financial terms were not disclosed
Rocky Mountain Health Plans issued a statement Tuesday saying that United would "restore the organization's capital base and help ensure that it becomes a stronger, more sustainable health plan over the long term."
About half of the 300,000 people currently covered by Rocky Mountain Health Plans are in the state's Medicaid program.
Medicaid, which primarily provides coverage for people living near the poverty line, is a growing business for UnitedHealthcare, which is the nation's largest health insurer.
Rocky Mountain Health Plans is a nonprofit health plan, whereas United is a publicly traded for-profit insurer. The Colorado insurer must become a for-profit entity, according to news reports in Colorado, which suggested United might pay between $35 million and $40 million.
The deal is subject to regulatory review. The Colorado insurer said it expects the transaction to close by year-end.