In March, Centene Corporation announced that it planned to buy WellCare Health Plans Incorporated for $17.3 billion.
The merger means that the two insurance companies would cover almost 22 million people under Medicare, Medicaid and the Affordable Care Act (ACA) exchanges. Centene’s CEO, Michael Neidorff will continue to serve as CEO of the two merged companies.
According to Neidorff, the Centene Wellcare merger “made more sense than I’ve seen in a long time.”
“With the addition of WellCare, we expect to bolster and diversify our product offerings, increase our scale and have access to new markets,” Neidorff said. “Which will in turn, enable us to continue investing in technology and better serve members with innovative programs designed to meet their needs.”
Millions of People Will Have Health Coverage Under the Merger
Centene’s Affordable Care Act (ACA) exchange market share grew to 20 percent during the most recent Open Enrollment Period (OEP). That means Centene currently has almost two million people enrolled in its ACA plans.WellCare also insures more than 4.4 million people through Medicaid, Medicare Advantage and Medicare Part D plans.
The merger means that about 12 million people will be covered under Medicaid, and five million people will be covered under Medicare when both companies’ membership numbers are combined.
“I could not be more excited to have the next chapter of WellCare’s successful journey be as part of the Centene organization,” said Christian Michalik, Chairman of the WellCare Board of Directors. “This transaction is a testament to the mission-driven company the WellCare team has built, and their unrelenting focus on putting members first. As part of the combined company, our shareholders can look forward to a continued bright future as Centene increases its scale and delivers diversified services to meet the needs of the communities both companies serve.”
What This Means for You
More than 10 thousand people become eligible for Medicare every day, and 65 percent of those people are at or below 400 percent of the Federal Poverty Line. Centene offers Medicare insurance to more than 400 thousand beneficiaries in 19 different states. That means every day you can make a huge difference in thousands of people’s lives who might otherwise be ignored.
WellCare reported its Medicare enrollment rose by nearly 10 percent in the fourth quarter of 2018. That growth is consistent with the industry as a whole: Anthem, UnitedHealth Group and Humana all experienced similar growth.
Because Medicare is experiencing such rapid growth across the board, you have an enormous potential to make a difference. The Centene Wellcare merger means that if you’re contracted with either Centene or WellCare, you can have access to both Centene and Wellcare Medicare plans to give your clients the best possible coverage. The company’s commitment to growth and serving its communities allows for millions of people to receive quality healthcare who might not have access to it otherwise.
Senior Market Advisors Benefits
At Senior Market Advisors, we are passionate about serving the underserved and giving our agents the tools they need to succeed. Our in-house marketing services make it so you can focus on the job at hand: reaching beneficiaries and giving them the information they need before they choose a Medicare plan. We offer an experienced marketing team, a strong sales support team and an unbeatable commission structure. Plus, when you contract with Senior Market Advisors, you can contract with Centene/WellCare, Anthem, Aetna, Humana, and a slew of other carriers at the same time. Go to agentcontract.com to start digitally contracting today.