Aetna (AET) Agrees to Sell Medicaid Business in Missouri (WCG)
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Aetna (NYSE: AET) today announced that it has agreed to sell its Missouri Medicaid business, called Missouri Care, to WellCare Health Plans, Inc. (NYSE: WCG). Financial terms were not disclosed.
The sale of Missouri Care, a MO HealthNet plan, is subject to customary closing conditions, including regulatory approval. Missouri Care provides managed care services to more than 100,000 members in Central, Eastern and Western Missouri.
Missouri Care CEO Pamela Johnson and employees dedicated to the Missouri Care business will join WellCare to help with the goal of ensuring uninterrupted service for members.
The sale of Missouri Care is related to Aetna’s proposed acquisition of Coventry Health Care, Inc., which operates a Missouri Medicaid plan called Health Care USA. A combination of Missouri Care and HealthCare USA would exceed permissible membership thresholds under Missouri Medicaid contracts. As previously disclosed, Aetna plans to operate HealthCare USA, with more than 250,000 members, when the Coventry acquisition is completed. Aetna continues to expect that the Coventry acquisition will be completed in mid-2013.
The sale of Missouri Care, a MO HealthNet plan, is subject to customary closing conditions, including regulatory approval. Missouri Care provides managed care services to more than 100,000 members in Central, Eastern and Western Missouri.
Missouri Care CEO Pamela Johnson and employees dedicated to the Missouri Care business will join WellCare to help with the goal of ensuring uninterrupted service for members.
The sale of Missouri Care is related to Aetna’s proposed acquisition of Coventry Health Care, Inc., which operates a Missouri Medicaid plan called Health Care USA. A combination of Missouri Care and HealthCare USA would exceed permissible membership thresholds under Missouri Medicaid contracts. As previously disclosed, Aetna plans to operate HealthCare USA, with more than 250,000 members, when the Coventry acquisition is completed. Aetna continues to expect that the Coventry acquisition will be completed in mid-2013.
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