The move makes Centene one of the largest behavioral health providers in the country, serving 41 million members. It also expands the payer's government plan and pharmacy membership.
"Magellan will expand Centene's reach to provide increased access to behavioral healthcare for our members at a time when so many Americans are struggling with mental or behavioral health issues," said Michael Neidorff, Centene CEO and chair. "This transaction establishes a strong foundation from which we will innovate and reimagine behavioral and specialty health to provide comprehensive and integrated healthcare to our members, while generating value for our state partners and shareholders."
Under the deal, Magellan will operate independently under Centene's healthcare enterprises arm, with Magellan's current leadership continuing to helm the company, according to the news release.
The payer announced its intent to acquire Magellan on Jan. 4, 2021, estimating the deal would close in the second half of 2021.