Insurance Commissioner Approves Sale of Trillium Health Plan to Centene

In her ruling, Laura Cali said the sale was fair, just and equitable.

by Diane Lund-Muzikant
The Lund Report
, June 24 2015

Late Thursday afternoon, Oregon’s Insurance Commissioner announced that she had approved the sale of Agate Resources to a Fortune 500 company. Agate is the parent company of Trillium Community Health Plan, a coordinated care organization in Lane County.

In her ruling, Cali mentioned that she considered over 50 public comments in support and opposition to the transaction but found “no material or reasonable objections,” adding that the sale would not “substantially reduce the security of and service to be rendered to policyholders.”

Centene Corporation has agreed to pay $80 million for the transaction, and those dollars will be dispersed to Agate’s shareholders – Trillium has 5,000 shares of common stock outstanding, LIPA, 3,000 shares and Agate, 2,000 shares.

Earlier, the Eugene Register Guard reported that the “Oregon Insurance Division has blacked out the identities of Agate’s 217 individual owners and the payouts they would receive under the sale.”

The majority of these shareholders are Lane County physicians and also include Coplin, who earned $492,324 last year. That compensation package included a $96,230 bonus and stock awards of $46,000. The previous year, Coplin earned $366,530. Trillium, which has more than 100,000 Medicaid members, reported a profit of $22 million in 2014, up from $3.9 million in 2013 and $1.15 million in 2012. Compared to other plans, its earnings before interest and taxes were $36 million.

At the end of 2015, Trillium expects to have $47 million in capital and surplus. Agate provides administrative services for Trillium and LIPA – a group of 217 physicians.