Anthem will buy Medicaid operations owned by
WellCare Health Plans in Missouri and Nebraska as part of a divestiture needed
by Centene to win approval of its WellCare acquisition.
Centene and WellCare executives
Thursday said the divestiture of the WellCare Medicaid plans is
the latest effort by the health insurance companies to win over regulators to
their merger. The deal has already “received approvals from insurance and
health care departments from 19 states,” the insurers said Thursday.
"This agreement represents an important
milestone toward completing the combination of Centene and WellCare,"
Centene chief executive Michael Neidorff said. Financial terms of the
divestiture were not disclosed Wednesday.
It’s good news for Anthem, which operates Blue
Cross and Blue Shield plans in 14 states, and has been on the hunt for
acquisitions to grow its businesses. Anthem is the nation’s second-largest
health insurer and will add 300,000 Medicaid members in the divestiture.
"We look forward to working with our
state partners to serve Medicaid members
in Missouri and Nebraska with our innovative care
management programs designed to improve health outcomes among the most
specialized populations," Anthem chief executive Gail Boudreaux said.
Centene, which announced plans to buy WellCare
for more than $15 billion earlier this year, said the merger could be completed
in the first half of 2020.
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