Amid speculation Centene may be a takeover target, the health insurer’s CEO said the company is committed to completing its acquisition of WellCare Health Plans with the regulatory process well underway.
Reports have emerged this week that Humana may be interested in Centene should Centene’s proposed acquisition of Wellcare Health Plans fall through. Centene on March 27 announced plans to buy WellCare for more than $15 billion in a deal that would expand the business of administering Medicaid benefits for poor Americans as well as private Medicare Advantage coverage.
Centene chairman and chief executive Michael Neidorff wrote a letter Monday saying the insurer was forging ahead with the WellCare deal and the regulatory process was well underway. The letter was disclosed in a regulatory filing.
“We have already started seeking the necessary regulatory approvals that we’ll need to complete the transaction,” Neidorff said in a letter to Centene employees. “We look forward to working through the transaction process so we can bring the benefits of our combined company to all of our stakeholders.”
Centene’s WellCare transaction would put the combined company in all 50 states, creating a larger player in the business of administering Medicare Advantage. Centene is already sells Medicaid benefits in contracts with many states and is the largest provider of individual coverage under the Affordable Care Act, offering subsidized Obamacare in 20 states.
“Importantly, it remains business as usual at Centene,” Neidorff said in his letter to employees. “The Centene and Wellcare integration teams are in full swing developing functional plans to help ensure a successful integration. The best way you can help is by remaining focused on your day-to-day responsibilities and business objectives, so we can continue helping our members live healthier lives.”
Date: May 08, 2019