Health insurer Centene to buy Fidelis Care for $3.75 billion

Centene Corporation
The Centene Corporation (CNC) Position Raised by State Street Corp
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13 September, 2017

Centene, which has been busy expanding its presence on the Affordable Care Act exchanges, also plans to grow through a new acquisition.

Fidelis Care, one of the biggest Obamacare health insurers in NY state, is selling its operation to a national public company that specializes in government-sponsored health insurance programs.

With Fidelis, Centene now has a significant footprint in the four states with the largest managed care membership: California, Florida, New York and Texas.

The acquisition announced Tuesday would give Centene, already a giant in the Medicaid managed-care business, more than 1.6 million members in NY, enrolled in product lines including Medicaid, Affordable Care Act exchange plans, and Medicare.

Centene said the deal, which is expected to close in the first quarter of 2018, would significantly improve the company's earnings per share. Combined, Centene and Fidelis Care serve about 13.8 million members as of June 30. In accordance with Centene's decentralized management style, it intends to retain all of Fidelis Care's employees as well as keep its management team intact.

Fidelis is a nonprofit and Catholic organization.


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