Managed Care Deals for All in 2019

Managed Care Deals for All in 2019

by | Sep 13, 2019 3:23 pm | Managed Care | 0 comments

Investors seem unfazed by the Democratic presidential candidates’ debate around the topic of “Medicare for All.” Mergers and acquisitions in the Managed Care sector are flowing quite well this year. Halfway through September, 20 deals have been announced, putting this sector on track to equal or possibly exceed the 25 deals announced in 2018. Over the last decade, annual deal volume in this sector has averaged 20 deals per year. The peak was hit in 2015 with 43 deals, not including the terminated mega-deals between Aetna and Humana (NYSE: HUM) for $37 billion and Anthem (NYSE: ANTM) and Cigna (NYSE: CI) for $54 billion. In June of that year the U.S. Supreme Court ruled... Read More »
Managed Care Deals for All in 2019

Aetna Sells Medicare Part D Biz to WellCare

by | Sep 27, 2018 12:39 pm | Managed Care | 0 comments

Even before federal and state officials made the demand, Aetna Inc. (NYSE: AET) agreed to divest its standalone Medicare Part D business to WellCare Health Plans (NYSE: WCG) for an undisclosed price. The deal was struck to help deflect objections to Aetna’s takeover by CVS Health (NYSE: CVS), which was announced on December 3, 2017. The $77 billion price for that deal consists of $69 billion in cash and stock, and Aetna’s debt of approximately $8 billion. This transaction with WellCare is subject to the completion of that deal, which CVS expects will close in the early part of the fourth quarter of 2018. Aetna’s standalone Medicare Part D business includes more than 2.2... Read More »
Managed Care Deals for All in 2019

Meridian Sells to WellCare Health Plans for $2.5 Billion

by | May 30, 2018 1:16 pm | Managed Care | 0 comments

WellCare Health Plans, Inc. (NYSE: WCG) struck a deal to acquire privately held Meridian, which operates Medicaid plans in Illinois and Michigan, as well as MeridianRx, a pharmacy benefit manager (PBM). The all-cash price is $2.5 billion. Meridian expects to generate more than $4.3 billion in total revenue in 2018. Through its subsidiaries, Meridian Health Plan of Michicgan, Inc. and Meridian Health Plan of Illinois, Inc., the company serves approximately 1.1 million Medicaid, Medicare Advantage, integrated dual-eligible and Health Insurance Marketplace members as or May 1, 2018, in Michigan, Illinois, Indiana and Ohio. This transaction is expected to close by the end of 2018. For... Read More »

Managed Care Deals Deflate in 2016

by | Dec 21, 2016 8:00 am | Managed Care | 0 comments

As the end of the year approaches, the Managed Care sector hasn’t changed its sluggish pace. Just 20 deals have been announced through mid-December, a 56% drop from 2015’s total of 45 transactions. Spending is another matter. As of this writing, nearly $1.7 billion has been committed to financing the 20 deals. There is no way to match last year’s outrageous total of $100.4 billion, courtesy of the two super-mega-deals from Aetna (NYSE: AET) and Anthem (NYSE: ANTM), made for Humana (NYSE: HUM, $37 billion) and Cigna (NYSE: CI, $54 billion), respectively. You’ve been living under a rock if you haven’t heard that the Justice Department challenged those mergers back in... Read More »