If the deal closes, the combined entity would be the top Medicaid provider in the nation, with 12.3 million members. Jefferies analyst David Windley told S&P the companies do have some material overlap in Florida, Georgia, Illinois and Missouri. A separate analyst on the conference call said the deal could raise some antitrust concerns, as Centene already controls a large share of the Medicaid market in several states.
“Centene has been more acquisitive and slowly edged itself toward the top five,” Mr. Windley told S&P. “This deal kind of makes it so you can’t think of them as one of the small guys anymore.” He added the merger could help Centene “leapfrog” over Humana when it comes to revenue.
In an interview with Bloomberg Law, Centene CEO Michael Neidorff said the insurer will have to divest some plans in two states where competition is limited in the Medicaid market.
“There are two states, Nebraska and Missouri, where there’s three plans, and WellCare’s one, we’re one,” Mr. Neidorff said April 4. “We know one of the plans is going to have to be divested.”
More articles on payers:
BCBS of Texas to open primary care clinics: 5 things to know
128,000 kids lost health insurance in Tennessee over 2 years — Here’s why
Pennsylvania woman denied coverage for sepsis-related foot amputation
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
