In order to finalize a separate transaction, health insurer Aetna agreed to sell its Medicaid plan, Missouri Care, to WellCare Health Plans.
Financial terms of the deal were not disclosed. The sale relates to Aetna's proposed acquisition of Coventry Health Care.
In August, Aetna said it would buy Coventry for $5.7 billion in cash and stock, and including Coventry's debt, the transaction is estimated to be worth $7.3 billion. Coventry currently has a Medicaid plan in Missouri, and Missouri's Medicaid contracts would not allow Aetna to control both Coventry's Medicaid plan as well as Missouri Care.
Missouri Care covers 100,000 people across the state, while Coventry's Medicaid plan covers more than 250,000 Missourians. The sale of Missouri Care is pending regulatory approval, as is Aetna's acquisition of Coventry. Aetna's expects the Coventry acquisition will be finalized in the middle of this year.
Financial terms of the deal were not disclosed. The sale relates to Aetna's proposed acquisition of Coventry Health Care.
In August, Aetna said it would buy Coventry for $5.7 billion in cash and stock, and including Coventry's debt, the transaction is estimated to be worth $7.3 billion. Coventry currently has a Medicaid plan in Missouri, and Missouri's Medicaid contracts would not allow Aetna to control both Coventry's Medicaid plan as well as Missouri Care.
Missouri Care covers 100,000 people across the state, while Coventry's Medicaid plan covers more than 250,000 Missourians. The sale of Missouri Care is pending regulatory approval, as is Aetna's acquisition of Coventry. Aetna's expects the Coventry acquisition will be finalized in the middle of this year.
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