Centene and WellCare Announce Agreement Between WellCare and Anthem, Inc., to Divest Missouri and Nebraska Medicaid Plans

Health Policy and Law Daily

2019 OCT 07 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Centene Corporation (NYSE: CNC) (“Centene”) and WellCare Health Plans, Inc. (NYSE: WCG) (“WellCare”) announced that, in connection with the previously announced merger agreement between Centene and WellCare, a subsidiary of WellCare has entered into a definitive agreement under which Anthem, Inc. (NYSE: ANTM) (“Anthem”) will acquire WellCare’s Missouri and Nebraska Medicaid plans. The closing of the transaction with Anthem is subject to U.S. federal antitrust clearance, receipt of Missouri and Nebraska state regulatory approvals and other customary closing conditions, as well as the closing of the Centene - WellCare transaction.

In connection with the transaction, the companies are developing a plan to ensure that there is a smooth transition for members.

“This agreement represents an important milestone toward completing the combination of Centene and WellCare,” said Michael F. Neidorff, Centene’s Chairman, President and Chief Executive Officer. “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,” said Gail K. Boudreaux, President and Chief Executive Officer of Anthem, Inc.

“Our WellCare associates have done an outstanding job serving our members, providers and government partners in Missouri and Nebraska,” said Ken Burdick, WellCare’s Chief Executive Officer. “We thank them for their commitment, leadership and continued support as we work toward completing our combination with Centene.”

As previously announced on March 27, 2019, Centene and WellCare agreed to combine in a transaction that will create a premier healthcare enterprise focused on government-sponsored healthcare programs and a leader in Medicaid, Medicare and the Health Insurance Marketplace. The combination has received approvals from insurance and health care departments from 19 states, including Alabama, Arkansas, California, Florida, Kansas, Kentucky, Maine, Michigan, Mississippi, Missouri, Nebraska, New Hampshire, North Carolina, Oklahoma, South Carolina, Tennessee, Vermont, Washington and Wisconsin. Completion of the Centene - WellCare transaction remains subject to clearance under the Hart-Scott-Rodino Act, receipt of required state regulatory approvals and other customary closing conditions.