The $17.3 billion deal could negatively affect drugmakers, insurers and pharmacy benefit managers, particularly CVS Health — which owns one of the largest PBMs in the nation, according to the report.
As PBM for Wellcare, CVS Health currently gets a cut of $15 billion to $20 billion of Wellcare’s annual drug spending. The Centene acquisition would be a major loss for CVS if Centene’s PBM, RxAdvance, replaces CVS.
Humana may also be negatively affected, according to Barron’s. Humana investors have been upset that the insurer didn’t aggressively seek a deal to get more involved in Medicaid. The Centene-WellCare combination has effectively removed two potential Medicaid deal partners and would create a stronger competitor for the health insurer.
Read the full report here.
More articles on payers:
Trump administration sued over New Hampshire’s Medicaid work requirements
5 must-reads on payer-provider relationships
Sutter Health, Anthem sign new contract
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
