CVS to acquire IlliniCare Health Plan from Centene
CVS Health acquisition of IlliniCare Health Plan : Centene, a US health insurance company, has signed a deal to divest its Illinois health plan subsidiary – IlliniCare Health Plan to CVS Health for an undisclosed amount.
The deal is expected to help Centene to speed up the closing of its previously announced $17.3 billion merger deal with rival US health insurance company WellCare Health Plans.
According to the terms of the transaction, Centene will be selling its Medicaid and Medicare Advantage businesses in Illinois to CVS Health.
Commenting on CVS Health acquisition of IlliniCare Health Plan, Karen Lynch – CVS Health Executive Vice President and Aetna President 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, behavioral and social determinants of care.
“We look forward to working with Centene on a seamless transition and developing a deeper relationship with the state and local providers.”
CVS Health acquisition of IlliniCare Health Plan from Centene. Photo courtesy of Free-Photos from Pixabay.
The deal excludes IlliniCare’s Medicare-Medicaid Alignment Initiative (MMAI) business and also its statewide YouthCare foster care contract, which is set to commence in February 2020. Centene’s Ambetter business in Illinois is also not included in the transaction with CVS Health.
CVS Health acquisition of IlliniCare Health Plan will be closed once it gets the US federal antitrust clearance, regulatory approvals in Illinois state, and satisfies other customary closing conditions. It will also need the Centene, WellCare merger to be wrapped up, which is likely to happen in the first half of 2020.
Michael Neidorff – Centene Chairman, President and CEO, commenting on CVS Health acquisition of IlliniCare Health Plan, 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.
“Our employees in Illinois have done an exceptional job serving our communities in the state. We are pleased to enter this agreement with CVS Health, under which these employees can continue helping members achieve better health outcomes while delivering benefits to providers.”