CVS Health to acquire IlliniCare Health
CVS Health announced that in connection with the previously announced merger of Centene and WellCare Health Plans, the retailer will acquire IlliniCare Health Plan.
The transaction entails the sale of Centene’s Medicaid and Medicare Advantage lines of business in Illinois, the company said.
“Expanding our Medicaid and Medicare Advantage presence in Illinois will allow us to serve more members with our proven holistic approach that addresses physical, behavioral and social determinants of care,” Karen S. Lynch, the executive vice president of CVS Health and president of Aetna, said. “We look forward to working with Centene on a seamless transition and developing a deeper relationship with the state and local providers.”
As part of the agreement, Centene will retain IlliniCare’s Medicare-Medicaid Alignment Initiative business and statewide YouthCare foster care contact, set to begin Feb 2020.
“We are continuing to make progress towards completing our transaction with WellCare and the divestiture of our IlliniCare Health plan is the next step in that process,” Michael F. Neidorff, Centene’s chairman, president and chief executive officer said. “Our employees in Illinois have done an exceptional job serving our communities in the state. We are pleased to enter this agreement with CVS Health, under which these employees can continue helping members achieve better health outcomes while delivering benefits to providers. We will work closely with CVS Health to ensure a smooth transition of this business for members, employees and providers.”
CVS Health’s transaction is subject to U.S. federal antitrust clearance receipt of Illinois state regulatory approvals and other customary closing conditions, the company said.