By Diana Barr – Associate Editor, St.
Louis Business Journal September 27, 2019
A unit of
WellCare Health Plans Inc. has agreed to sell its Missouri and Nebraska
Medicaid plans to Anthem Inc. The deal is being made in connection with
WellCare's pending acquisition by Centene Corp., the companies said
Thursday.
Terms of the
deal weren't disclosed. The closing of the transaction with Indianapolis-based
Anthem (NYSE: ANTM) is subject to federal antitrust clearance, state regulatory
approvals and the closing of the Centene-WellCare deal, officials said.
Anthem, a
for-profit managed health care company and the nation's second-largest health
insurer, operates Blue Cross Blue Shield plans in 14 states, including
Missouri. With the deal, it will gain 300,000 Medicaid members.
St. Louis-based
Centene (NYSE: CNC) announced in March that
it had agreed to buy Tampa-based WellCare in a deal valued at about $17.3
billion. Both provide managed health care services primarily through
government-sponsored programs such as Medicaid, Medicare and the health
insurance marketplace.
Regarding
Anthem's acquisition of WellCare's Missouri and Nebraska plans under Medicaid,
the companies said they are developing a plan to ensure a smooth transition for
plan members.
"This
agreement represents an important milestone toward completing the combination
of Centene and WellCare," Centene Chairman, President and CEO Michael Neidorff said Thursday in a
statement. "This transaction demonstrates the strength and quality of
WellCare's Medicaid healthcare plans, and we are pleased to have reached an
agreement where the WellCare employees who operate and manage these plans will
become part of Anthem and continue providing members and communities with
solutions to help them achieve better health outcomes."
"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
President and CEO Gail Boudreaux said.
Centene's
acquisition of WellCare, which will create a combined company with about 22
million members across 50 states, is still expected to close in the first half
of next year, officials said Thursday. The companies also said their merger has
received approvals from regulators in 19
states and that its closing is subject to clearance by federal
and state regulators.
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