CVS Health to acquire IlliniCare Health PlanChristian Fernsby ▼ | December 2, 2019
Centene Corporation and CVS Health announced that Centene has entered into a definitive agreement under which CVS Health will acquire Centene's Illinois health plan subsidiary, IlliniCare Health Plan.
Acquisition CVS Health
Topics: CVS IlliniCare
Centene will retain IlliniCare's Medicare-Medicaid Alignment Initiative ("MMAI") business and IlliniCare's statewide YouthCare foster care contract, set to commence in February 2020.
Centene's Ambetter business in Illinois is not affected.
The companies are committed to ensuring that there is a smooth transition for members.
The closing of the transaction with CVS Health is subject to U.S.
federal antitrust clearance, receipt of Illinois state regulatory approvals and other customary closing conditions, as well as the closing of the Centene – WellCare transaction.
As previously announced on March 27, 2019, Centene and WellCare agreed to combine in a transaction that will create a premier healthcare enterprise focused on government-sponsored healthcare programs and a leader in Medicaid, Medicare and the Health Insurance Marketplace.
The combination has received approvals from insurance and health care departments from 26 states.
Completion of the Centene – WellCare transaction remains subject to clearance under the Hart-Scott-Rodino Act, receipt of required state regulatory approvals and other customary closing conditions.
Centene and WellCare continue to expect that the Centene – WellCare transaction will be completed by the first half of 2020.
The financial terms of this transaction will not be disclosed and the impact to CVS Health earnings once closed is expected to be immaterial. ■