WellCare Health Plans Inc

Centene expects the combined company to be the number one player in the Medicaid business.

In its fourth-quarter earnings conference call, Centene (CNC) guided for fiscal 2019 GAAP diluted EPS of $3.65–$3.83.

Today, Centene (CNC) issued a press release announcing its plan to acquire WellCare Health Plans (WCG) for a total consideration of $17.3 billion.

Wall Street analysts expect an upside potential of 53.80% for Centene (CNC), based on the company’s trading price of $51.06.

If the US Senate passes the AHCA, the CBO estimates that ~23 million people could become uninsured by 2026. The CBO projects that Medicaid spending could fall $880 billion in the next ten years.

WellCare Health Plans has updated its earnings per share guidance from the previously estimated range of $6.00–$6.25 to the new range of $6.55–$6.80.

In 1Q17, WellCare Health Plans’ (WCG) Medicare Health Plans business reported revenues close to $1.1 billion, which represents year-over-year growth of ~12.4%.

In 1Q17, WellCare Health Plans (WCG) reported revenues of ~$3.9 billion, which totals year-over-year growth of around 11.7%.

In 1Q17, WellCare Health Plans’ (WCG) Medicaid business reported revenues close to $2.6 billion, which equals year-over-year growth of ~11.8%.

On April 28, 2017, WellCare Health Plans (WCG) completed the acquisition of Universal American Corp. This deal added 119,000 Medicare Advantage members from several major markets

Centene has reported net revenue of $5,821 million in 3Q15, an increase of 5.7% compared to $5,506 million in 2Q15. Operating revenue increased 5.8% in 3Q15.

The rise in Aetna’s EPS is mainly attributed to the increase in the company’s government-sponsored MA (Medicare Advantage) and Medicaid enrollments in 1Q15.

Anthem’s membership is mainly concentrated in the local group, total national, and Medicaid population. The local group accounts for about 40.4% of members.

Customer segments The players in the private health insurance industry (IYH) aim for a favorable enrollment mix to reduce taxes and other liabilities while at the same time generating sustainable profits. Accordingly, managed care organizations such as Humana (HUM), Aetna (AET), Anthem, Cigna (CI), and WellCare Health Plans (WCG) are increasingly focusing on government-sponsored and international enrollments to balance […]

In 2014, Aetna made substantial investments in growth initiatives in the government-sponsored and Healthagen business and consumer engagement technology.

Aetna (AET) earns about 38% of its revenue by providing health insurance services to government-sponsored enrollees.

Aetna’s membership is mainly concentrated in the western US, followed by the Southeast, the Northeast, the Mid-US, and finally consolidated international enrollments.

The private health insurance industry (XLV) in the US is gradually shifting from a group insurance model to a retail insurance model.

Humana has expanded its network in California, Florida, and Texas, as these states are key health insurance markets.

According to a report by Cain Brothers, the private health insurance industry should see a rise in merger and acquisition activity (or M&A) in 2015.

With 26 million uninsured people expected to gain insurance by 2017 due to the Affordable Care Act, the US is seeing a rise in health insurance demand.

As hospital utilization remains low, more employers are exploring the option of self-insurance to reduce their employee benefit costs.