CVS Health will acquire a subsidiary of Centene Corp. in Illinois, the organizations said Dec. 2.
The deal is in connection with Centene’s proposed merger with WellCare Health Plans, which is slated to close in the first half of 2020. Under the sale, Centene will spin off its IlliniCare Health Plan to CVS for an undisclosed amount. IlliniCare Health Plan includes Medicaid and Medicare Advantage plans.
Centene will keep IlliniCare’s Medicare-Medicaid Alignment Initiative business as well as IlliniCare’s YouthCare foster care contract, which will begin in February 2020. In addition, Centene’s Ambetter business in Illinois will not be affected by the deal.
“We are continuing to make progress towards completing our transaction with WellCare and the divestiture of our IlliniCare Health plan is the next step in that process,” Centene CEO Michael F. Neidorff said in a press release.
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Source: Becker’s Hospital Review