Centene To Snap Up Rival WellCare For $15B As It Dives Deeper Into Medicare, Medicaid Marketplace
The deal between Centene and WellCare would create a health care giant that specialized in offering private health plans under Medicare and Medicaid. The combined company, with revenues expected to approach $100 billion in 2019, would cover 22 million people in all 50 states.
The Associated Press:
Centene To Buy WellCare For $15B, Create Medicaid Powerhouse
Centene is spending more than $15 billion on rival WellCare to dive deeper into government-funded health coverage in the same week that President Donald Trump's administration renewed its attack on the Affordable Care Act. The insurer said Wednesday that its cash-and-stock deal to buy WellCare will create an insurer that manages Medicaid coverage for more than 12 million people and covers several million more in the federal government's Medicare program for people age 65 and older. (3/27)
Reuters:
U.S. Health Insurer Centene To Buy Smaller Rival WellCare For $15.3 Billion
The announcement comes days after the Trump administration stepped up its opposition to former President Barack Obama's signature healthcare law. The Department of Justice (DOJ) on Monday said it believes the Affordable Care Act (ACA), popularly known as Obamacare, violated the U.S. Constitution and that the law should be struck down. Centene relies on its Obamacare business for about 40 percent of its earnings, making it among the most vulnerable companies should the law be overturned, according to SVB Leerink analyst Ana Gupte. (3/27)
The New York Times:
Centene To Buy WellCare For $15.3 Billion, Creating Health Care Giant
If the deal goes through, the acquisition of WellCare will cement Centene’s dominance in Medicaid coverage, the state-federal program for the poor, as well as in the Obamacare market, where it is the largest player. (Abelson and de la Merced, 3/27)
The Wall Street Journal:
Centene To Buy WellCare For Around $15.3 Billion
Together, the companies would achieve substantial scale, an important goal, as the biggest health-insurance players have consolidated to form ever-larger conglomerates that bring together multiple different businesses, from pharmacy benefits to clinics and drugstores. Centene also supplies coverage for members of the military and health care for prison populations. Michael Neidorff, chief executive officer of Centene, said getting to greater scale was a major reason for the deal. “It gets your overhead down, so you can be more efficient,” he said. “When you talk to government, the fact that you have that kind of scale is important.” He also said Centene would benefit from WellCare’s Medicare platform, while WellCare could use Centene’s technology. (Wilde Mathews and Prang, 3/27)
Modern Healthcare:
Centene To Purchase WellCare In $17B ACA Insurer Deal
Centene Corp. on Wednesday said it will buy fellow Medicaid insurer WellCare Health Plans in an estimated $17.3 billion deal. All in all, the two insurers would cover nearly 22 million people in Medicare, Medicaid and the ACA exchanges. Centene CEO Michael Neidorff will serve as chairman and CEO of the merged company. (3/27)
