WellCare Health Plans, Inc. announced today, that on November 30, 2018, it closed its acquisition of Aetna Inc.’s standalone Medicare Part D prescription drug plans.
“We’re pleased that we could be a solution to our federal partners, as well as CVS Health,” said Ken Burdick, WellCare’s chief executive officer. “This acquisition allows us the opportunity to serve over 2 million additional Medicare Part D members nationwide and complements our long-term growth strategy within government-sponsored health plans.”
Per the terms of the related agreements, Aetna will provide administrative services to, and assume the financial risk of, the Aetna Part D plans through the end of plan year 2019. As a result, under generally accepted accounting principles, WellCare does not expect to recognize any revenue from the Aetna Part D plans or it to affect its results of operations until 2020. As of September 30, 2018, WellCare served approximately 1.1 million standalone Medicare Part D prescription drug plan members.
Date: December 10, 2018
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Source: Yahoo Finance