Close Close

Life Health > Health Insurance

WellCare, Centene are said to bid for Aetna Medicare assets

Your article was successfully shared with the contacts you provided.

(Bloomberg) — Health insurers including WellCare Health Plans and Centene Corp. have offered to buy assets that Aetna may have to sell to gain regulatory approval for its proposed $37 billion takeover of Humana, a person familiar with the matter said.

Tampa, Florida-based WellCare and St. Louis-based Centene have separately bid for Aetna’s Medicare Advantage policies that are up for sale, covering about 350,000 people. Other health insurers are eyeing pieces of the business, the person said Saturday. Aetna, which is based in Hartford, Connecticut, covers about 1.3 million people in Medicare Advantage plans, while Humana, which is based in Louisville, Kentucky, covers 3.2 million.

Aetna presented the divestiture plan on Friday at a meeting with Justice Department antitrust officials. The insurer is seeking to show that there’s sufficient competition in the market for private health plans for the elderly to allow the Humana deal to go forward.

Related: Aetna said to meet with DOJ on Friday about Humana deal

Reuters reported earlier Saturday on WellCare and Centene’s interest in the Aetna assets. Aetna declined to comment, and representatives of WellCare didn’t respond to requests for comment.

Centene doesn’t comment on rumors, Marcela Hawn, a spokeswoman, said in an e-mail. The company also has a policy not to participate in auctions, she said.

Aetna had been working with advisers to prepare to sell assets worth several billion dollars if it’s able to complete the deal with Humana, people familiar with the plans said last week.

The Justice Department also is scrutinizing Anthem’s proposed $48 billion deal to buy Cigna Corp. Together, the two acquisitions would reduce the ranks of the biggest U.S. health insurers to three from five.


Aetna said to plan asset sales to quash antitrust worries

Anthem-Cigna meltdown might spark deals for smaller health plans

Have you followed us on Facebook?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.