WellCare strikes 2.5-bn-dollar deal to buy MeridianHealth & MeridianRx
Category: #health  By Dhananjay Punekar  Date: 2018-05-31
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WellCare strikes 2.5-bn-dollar deal to buy MeridianHealth & MeridianRx

With an aim to augment its Medicaid as well as Medicare services, WellCare Health Plans Inc. has decided to acquire the Meridian Health plans of Michigan & Illinois along with Meridian Rx for USD 2.5 billion. Sources cite that the deal is likely to be finalized by the end of this year.

Since its inception in 1997 to now, Meridian Health System Inc. has expanded to become the biggest health plan in the state of Michigan with over 500,000 members. For the record, Meridian provides healthcare services to nearly 1.1 million Medicaid members in Illinois and Michigan. It also encompasses twenty-seven thousand medicare advantage associates in Ohio, Illinois, Michigan, and Indiana as well as six thousand private healthcare insurance affiliates with Obamacare in the state of Michigan.  

The key officials of WellCare have stated that the acquisition of Meridian’s business will contribute nearly USD 4.3 billion towards its yearly revenue of about USD 17 billion. As per the company statement, the firm is thinking of expanding its Medicaid business activities across the state of Illinois through the purchase of an integrated pharmacy benefit management (PBM) firm Meridian Rx.

David Cotton, the CEO of Meridian Health System Inc., has declared that WellCare’s firm commitment for enhancing the quality of life of its affiliates makes it an ideal partner for Meridian. Ken Burdick, WellCare’s CEO, on the other hand, was quoted stating that the contract between the two firms is in line with their focus on the state-run healthcare plans. He further said that the strategic decision will reinforce the capabilities of both the organizations and help in not only augmenting their businesses, but also meaningfully advancing their growth plans through vertical & horizontal business expansion.

The purchase of Meridian will increase Medicaid’s membership portfolio of WellCare in the states of Illinois and Michigan. WellCare, which reported nearly 4.3 million Medicaid affiliates in the first quarter of 2018, has claimed that the addition of new members will substantially augment its Medicaid portfolio.



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Dhananjay Punekar

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Dhananjay Punekar

Dhananjay Punekar presently develops content for a slew of portals, including Market Size Forecasters and Algosonline. A post graduate in mathematics and business administration, he worked in Infosys BPO Limited prior to switching his professional genre. As a content wr...

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