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CVS Health to buy IlliniCare
Posted on Monday, 02 December 2019 14:58
CVS Health is buying US-based health insurance company IlliniCare Health Plan from Centene for an undisclosed sum.
As part of the acquisition, the company will pick up Centene’s Illinois-based Medicaid and Medicare Advantage line of businesses.
However, the vendor will retain its Medicare-Medicaid Initiative (MMAI) and Ambetter divisions, as well as its YouthCare foster care contract, which is due to start in February 2020.
Closing remains subject to US federal antitrust clearance, Illinois state regulatory approvals and the completion of Centene’s transaction with WellCare Health Plans.
Back in March, the company agreed to buy Florida-based WellCare for USD 17.30 billion, in a transaction slated to complete in the first half of 2020.
Centene’s president, Michael F Neidorff, said: “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.”
IlliniCare provides health programmes and insurance schemes across Illinois.
The group’s MMAI business offers a range of dental, vision, hearing and prescription drug services for senior citizens and patients with disabilities.
Karen Lynch, executive vice-president of CVS Health, said: “Expanding our Medicaid and Medicare Advantage presence in Illinois will allow us to serve more members with our proven holistic approach that addresses physical, behavioural and social determinants of care.”
She added the transaction would also strengthen relationships with state and local providers.
Headquartered in Rhode Island, CVS Health is billed as the largest pharmacy health care provider in the US.
It operates in more than 9,900 retail stores nationwide and has sites in Puerto Rico and Washington DC.
In the nine months to 30th September 2019, CVS Health posted revenue of USD 189.89 billion, up 35.5 per cent from USD 140.16 billion in the corresponding period of 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 772 deals targeting direct life, health and medical insurance carriers announced globally since the beginning of 2019.
In the largest of these, FWD Group Financial Services bought Thailand’s SCB Life Assurance for THB 92.70 billion (USD 3.06 billion).
© Zephus Ltd