Centene, WellCare Finalize Major Health Payer Merger Deal

Centene and WellCare announced they have finalized a major health payer merger deal that will combine the two organizations into the largest health insurer by membership with more than 24 million covered individuals. 

The finalized merger deal follows 10 months after the March 2019 announcement saying Centene planned to acquire WellCare for $17.3 billion in cash and stock to bolster and diversify product offerings, increase sales, and have access to new markets which would enhance value-based care for patients. 

“We are pleased to have completed this transformational acquisition to create a leading healthcare enterprise committed to helping people live healthier lives through access to high-quality and affordable healthcare solutions," Michael F. Neidorff, Centene's chairman, president, and chief executive officer said in the announcement today. 

Together, Centene and WellCare will have approximately $100 billion in annual revenues that largely flow through public healthcare programs, according to an investor update from Centene in May 2019. About two-thirds of the combined payer’s portfolio is through Medicaid and another 14 percent is through Medicare and Medicare drug plans.

The health payer merger signals major consolidation the health payer industry, and many are concerned the combined payer will decrease competition within state Medicaid programs and among federal Medicare plans. 

This story will be updated as more information becomes available.