Acquisition of Health Plan Provider to Create New Enterprise for Insurance Company
The acquisition of Wellcare Health Plans will create a centralized health care enterprise focused on government-sponsored health care programs on the forefront of Medicaid, Medicare, and the Health Insurance Marketplace for Centene.
Wellcare Health Plans, a Tampa-based health care company providing managed care health plans through Medicaid, Medicare Advantage and Medicare Prescription Drug plans, will be acquired by major health insurer Centene Corp. with approximately 22 million members across 50 states.
Unanimously approved by each companies’ boards, the acquisition will create a centralized health care enterprise focused on government-sponsored health care programs on the forefront of Medicaid, Medicare, and the Health Insurance Marketplace.
In a press release, Cetene officials said they anticipate “increased scale and diversification” within the company's managed care service offerings and enhanced access. Its new member base includes approximately 12 million Medicaid and 5 million Medicare members (including Medicare Prescription Drug Plan), as well as individuals served in the Health Insurance Marketplace and TRICARE program.
"The combined company will operate 31 NCQA accredited health plans across the country and will have increased exposure to government-sponsored healthcare solutions through WellCare's Medicare Advantage and Medicare Prescription Drug Plans," according to the press release.
The new combined company will be head by Michael Neidorff as chairman and CEO, along with 11 board members, 9 of whom from the board of Centene and 2 from Wellcare board.
The deal is expected to close in the first half of 2020. It still needs approval from Centene and Wellcare Health Plans Inc. shareholders.
Centene and WellCare to Combine to Create a Premier Healthcare Enterprise Focused on Government-Sponsored Healthcare Programs [press release]. Centene website. St. Louis, MO and Tampa, FL. Published March 27, 2019. https://centene.gcs-web.com/news-releases/news-release-details/centene-and-wellcare-combine-create-premier-healthcare. Accessed March 27, 2019.