Englewood, Colo.-based Catholic Health Initiatives agreed to sell its health plan to Centene Corp., according to the Arkansas Democrat-Gazette.
CHI said in June 2016 that it planned to exit the health insurance business and spin off its insurance subsidiary QualChoice Health. At the time, QualChoice had lost $97 million in the nine-month period ending March 31, 2016.
QualChoice CEO Randall Crow and a Centene spokesperson confirmed to the Arkansas Democrat-Gazette Jan. 3 that the companies entered into a definitive agreement on the sale. The companies will remain independent until Arkansas Insurance Commissioner Allen Kerr finalizes and approves the deal.
“There will be no changes to QualChoice operations in the near future as a result of the sale,” Mr. Crow said in an email to the publication. “QualChoice members will still enjoy their current benefits and network of providers and pharmacies.”
QualChoice is Arkansas’ third-largest health plan. Financial terms of the deal were not disclosed.
Date: January 10, 2019