The transaction is expected to close by the end of 2018, subject to customary closing conditions, including regulatory approvals.
The family-owned Meridian is Michigan’s largest Medicaid managed care organization and serves more than 500,000 members in the state and more than 1.1 million overall. The insurer also serves 27,000 Medicare Advantage members in Illinois, Indiana, Michigan and Ohio.
According to Crain’s Detroit Business, Meridian ranks fourth on Crain’s Private 200 list of the largest privately held companies in metro Detroit with $3.8 billion in 2017.
In its press release, Wellcare states it expects to generate more than $4.3 billion in total revenue in 2018. As a result of this transaction, WellCare will diversify its Medicaid portfolio through the addition of Michigan, where Meridian has the No. 1 Medicaid market position; deepen its Medicaid business in Illinois; and acquire an integrated PBM platform.
Ken Burdick, WellCare’s CEO said when announcing the acquisition,
Meridian is a well-performing health plan, and WellCare and Meridian share a similar commitment to serving our members through a comprehensive, integrated approach to healthcare. This transaction strategically aligns with our focus on government-sponsored health plans, will strengthen our capabilities and growing business, and will meaningfully advance our growth agenda.
View WellCare’s presentation describing the highlights of the transaction
Read the press release from Wellcare
Get a recap of the acquisition from Meridian’s hometown paper, Crain’s Detroit Business