by Robert King | Aug 13, 2019 11:03am
Insurer
Centene announced it will expand the number of plans it offers on the
Affordable Care Act exchanges in 10 states.
The
expansion announced Monday comes as Centene seeks to acquire
WellCare, its biggest rival on the exchanges. The insurer overall offers
plans in 20 states.
Centene,
which serves nearly 2 million ACA exchange customers, said on Monday it
has started to get the regulatory approvals needed for the targeted states. The
insurer wants to expand its plan offerings in Arizona, Florida, Georgia,
Kansas, North Carolina, Ohio, South Carolina, Tennessee, Texas and Washington.
“Centene takes
pride in being the country's largest provider of health insurance marketplace
plans,” President and CEO Michael Nierdorff said in a statement.
Centene
has been a large player in the exchanges since they went online in 2014.
The
insurer posted a 65% increase in profits in the second quarter of this year and
reported earnings of $495 million for the quarter.
Centene
is trying to acquire WellCare for $17 billion, a deal that Nierdorff has told
investors is expected to close in the first half of 2020 but could be earlier. WellCare is
another major provider of ACA individual market plans.
The
proposed merger has caught the ire of the hospital industry worried about
insurer consolidation.
The American Hospital Association called for
the Department of Justice to “fully investigate” Centene and WellCare to ensure
the deal doesn’t reduce competition for managed care and Medicare Advantage.
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