Bruce
Japsen May 7, 2019, 10:11am
Amid speculation Centene may be a takeover
target, the health insurer’s CEO said the company is committed to completing
its acquisition of WellCare Health Plans with the regulatory process well
underway.
Reports have emerged this week that Humana may be interested in
Centene should Centene’s proposed acquisition of Wellcare
Health Plans fall through. Centene on March 27 announced plans to buy WellCare
for more than $15 billion in a deal that would expand the business of
administering Medicaid benefits for poor Americans as well as private Medicare
Advantage coverage.
Centene chairman and chief executive Michael Neidorff wrote a letter
Monday saying the insurer was forging ahead with the WellCare deal and the
regulatory process was well underway. The letter was disclosed in a regulatory filing.
“We have already started seeking the necessary regulatory
approvals that we’ll need to complete the transaction,” Neidorff said in a letter to
Centene employees. “We look forward to working through the
transaction process so we can bring the benefits of our combined company to all
of our stakeholders."
Centene’s WellCare transaction would put the
combined company in all 50 states, creating a larger player in the business of
administering Medicare Advantage. Centene is already sells Medicaid benefits in
contracts with many states and is the largest provider of individual coverage
under the Affordable Care Act, offering subsidized Obamacare in 20 states.
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