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WellCare Closes Acquisition of Standalone Medicare Part D Prescription Drug Plan Business from Aetna
Thursday 06 December 2018

6 December 2018 - US-based health insurer WellCare Health Plans, Inc. (NYSE: WCG) has closed its acquisition of health insurer Aetna Inc.'s standalone Medicare Part D prescription drug plans, the company said.

This was a step in drugstore operator CVS's (NYSE: CVS) closing of its USD 67.5bn acquisition of Aetna.

Per the terms of the related agreements, Aetna will provide administrative services to, and assume the financial risk of, the Aetna Part D plans through the end of plan year 2019. 

As a result, under generally accepted accounting principles, WellCare does not expect to recognize any revenue from the Aetna Part D plans or it to affect its results of operations until 2020.

As of September 30, 2018, WellCare served approximately 1.1 m standalone Medicare Part D prescription drug plan members.

Headquartered in Tampa, Fla., WellCare Health Plans focuses primarily on providing government-sponsored managed care services to families, children, seniors and individuals with complex medical needs primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug Plans, as well as individuals in the Health Insurance Marketplace.

WellCare serves approximately 5.5m members nationwide as of September 30, 2018.
Details
Date Published: 06/12/2018
Target: Aetna/ standalone Medicare Part D prescription drug plans
Country: USA
Sector: Healthcare
Type: Divestment
Financing:
Status: Closed
Vendor: Aetna
Buyer: WellCare Health Plans
Comment:
Terms of the deal were not disclosed

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