Jan. 7, 2019
Dive
Brief:
- After years of trying to unload
its insurance business, Catholic Health Initiatives has found a buyer for
its commercial plan in Arkansas. St. Louis-based Centene confirmed
with Healthcare Dive it has entered into a definitive agreement to
purchase QualChoice Life and Health Insurance.
- At the end of 2017,
Centene held the No. 3 spot for largest health plans in Arkansas,
according to the Arkansas Democrat Gazette.
With this purchase, Centene is acquiring the fourth-largest player in
the state, according to the Gazette's figures.
- The two companies will remain
independent until clearing regulatory hurdles, a Centene spokesperson
said.
Dive
Insight:
CHI,
one of the nation's largest health systems, decided in May 2016 it wanted to
intensify its focus on population health and value-based payments. To achieve
that aim and as part of a strategic realignment, the board believed it needed
to shed its health insurance business and began seeking partners.
Rather
than developing health insurance products and putting considerable capital
behind the venture, the Englewood, Colorado-based system wanted to invest
in its clinically integrated networks and aligning physicians throughout its
existing markets, according to a recent annual report.
In
2018, CHI found a buyer for its Medicare Advantage plan in Washington state, a
sale that is expected to close this year.
Centene
is the largest Medicaid managed care company in the country with more than 7
million members. The payer attributed recent growth in revenue to program
expansions in a number of states, including Arkansas.
Last
year, Centene expanded its MA footprint by entering eight new states,
including Arkansas. The company also recently began managing a special needs
population in the state, including those with high behavioral health needs and
intellectual disabilities, according to its latest annual report.
Centene also
sells individual plans sold on the Affordable Care Act exchange in Arkansas.
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