WellCare strikes 2.5-bn-dollar deal to buy MeridianHealth & MeridianRx
Category: #health  By Saipriya Iyer  Date: 2018-05-31
  • share
  • Twitter
  • Facebook
  • LinkedIn

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.



About Author

Saipriya Iyer

Email: [email protected]   

Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

Read More

More News By Saipriya Iyer

DTE Energy pledges to reach net-zero emissions of GHG by 2050
DTE Energy pledges to reach net-zero emissions of GHG by 2050
By Saipriya Iyer

DTE Energy has reportedly pledged to reach the net-zero GHG (greenhouse gas) emissions by 2050. This can be ensured through various actions involving customers, suppliers, and its infrastructure, that align with the lo...

Researchers investigate a novel treatment for Childhood Alzheimer’s
Researchers investigate a novel treatment for Childhood Alzheimer’s
By Saipriya Iyer

Researchers at the Lundquist Institute have reportedly collaborated with the Cure Sanfilippo Foundation on a new clinical trial to investigate if repurposing an anti-inflammatory drug could provide relief to children t...

Amazon unveils $2 billion climate fund to help decarbonize economies
Amazon unveils $2 billion climate fund to help decarbonize economies
By Saipriya Iyer

Amazon, the renowned technology and online retail giant, has reportedly announced a new initiative that would help efforts to develop sustainable technologies, products, and services that would allow Amazon and several...