Healthcare's back in play... on markets and in DC. First, the Trump admin announced it's taking another shot at repealing the Affordable Care Act. Then one of the plan's largest providers, Centene, revealed it's acquiring WellCare for a healthy $15B.
Want key details on the deal?... We've got you fully covered:
- One side booed, the other cheered: Shares of Centene fell 5%, likely because it paid 32% more than the share price of WellCare. For the same reason (but from the other side), WellCare shares jumped 12%.
- Now the Justice Dep't gives a second opinion: Since the combined company would control a huge part of the Medicaid market, regulators will likely only bless the deal if one side hands off millions of enrollees to another provider. That would keep competition for health insurance strong. And that's what regulators want.
Politics = Business... WellCare and Centene's enrollment benefited hugely from the Affordable Care Act's expansion of Medicaid, the government health insurance for the poor. If the Trump admin completely upends the Affordable Care Act, at least WellCare and Centene will have a shoulder to cry on.
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