WellCare picks up PBM, 1.1M members in $2.5B Meridian deal

WellCare Health Plans, a Tampa, Fla.-based health insurer specializing in managed Medicaid and Medicare Advantage policies, completed its acquisition of Meridian Health Sept. 1.

Meridian Health Plan of Michigan, Meridian Health Plan of Illinois, and pharmacy benefit manager MeridianRx are now wholly owned subsidiaries of WellCare. WellCare announced the deal in May.

Ken Burdick, WellCare's CEO, said in a statement: "This transaction grows and diversifies our Medicaid membership by nearly 40 percent, increases our Medicare Advantage presence in new markets, adds a proprietary PBM platform, and enhances WellCare's integrated dual-eligible and Marketplace capabilities, positioning us for further growth within government-sponsored programs."

Meridian was one of the largest privately held, for-profit managed care organizations in America. It served about 1.1 million Medicaid, Medicare Advantage and individual health exchange plan members as of June 30 in Michigan, Illinois, Indiana and Ohio.

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