CVS Health to Acquire IlliniCare Health for Centene to Acquire WellCare

   By Dave Sebastian

CVS Health Corp. (CVS) will acquire Centene Corp.'s (CNC) Illinois health-plan subsidiary, IlliniCare Health, in connection with Centene's acquisition of WellCare Health Plans Inc. (WCG), Centene and CVS said.

Centene's acquisition of Centene is slated to occur in the first half of 2020. The companies on Monday didn't disclose terms of the transaction and said the impact to CVS' earnings isn't likely to be material.

Centene had already divested its Medicaid and Medicare Advantage lines of business in Illinois, it said.

Centene said it will keep IlliniCare's Medicare-Medicaid Alignment Initiative business and IlliniCare's statewide YouthCare foster care contract that are set to commence in February 2020. Centene's Ambetter business in Illinois won't be affected, it said.

Centene's combination with WellCare has received approvals from insurance and health-care departments from 26 states, it said.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

December 02, 2019 06:35 ET (11:35 GMT)

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