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CVS Health Set to Acquire Centene's IlliniCare Health Plan
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CVS Health (CVS - Free Report) recently signed a definitive agreement with Centene Corporation (CNC - Free Report) . Per the terms of the agreement, CVS Health will acquire Centene's Illinois health plan subsidiary, IlliniCare Health Plan, Inc. Also, Centene's Medicaid and Medicare Advantage business lines in Illinois will be sold to CVS Health.
This collaboration is set to expand CVS Health’s Medicaid and Medicare Advantage base in Illinois.
More About the Collaboration
The strengthening of CVS Health’s Medicaid and Medicare Advantage businesses in Illinois should enable it to cater to a larger consumer network. The company’s verified holistic approach that is in line with physical, behavioral and social determinants of healthcare is also likely to serve as a positive.
The closing of the deal with Centene is contingent upon U.S. federal antitrust approval, receipt of Illinois state regulatory clearance, other routine closing conditions, and the completion of a previously announced merger deal between Centene and WellCare.
Per the agreement, Centene will retain IlliniCare's Medicare-Medicaid Alignment Initiative business and IlliniCare's statewide YouthCare foster care contract. Notably, the financial terms of this transaction will be kept under wraps.
Recent Developments
Recently, CVS Health invested in a crucial development with the aim of bolstering the Medicaid and Medicare business lines.
In November 2019, CVS Health — with its newly-acquired Aetna business — developed a Social Isolation Index to assess each Medicare beneficiary’s risk of social isolation. The mentioned index is based on claims data and multifaceted information on social determinants of health, and will help in identifying high-risk candidates. The company’s outreach program, Resources For Living, which is accessible to all members of Aetna Medicare Advantage and their caregivers, will provide further support to high-risk candidates.
Price Performance
Over the past six months, the stock has rallied 38.3%, outperforming the broader industry’s growth of 27.7%.
Zacks Rank & Stocks Worth a Look
CVS Health currently carries a Zacks Rank #3 (Hold).
Haemonetics has a projected long-term earnings growth rate of 13.5%.
NuVasive has an expected long-term earnings growth rate of 10.9%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
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CVS Health Set to Acquire Centene's IlliniCare Health Plan
CVS Health (CVS - Free Report) recently signed a definitive agreement with Centene Corporation (CNC - Free Report) . Per the terms of the agreement, CVS Health will acquire Centene's Illinois health plan subsidiary, IlliniCare Health Plan, Inc. Also, Centene's Medicaid and Medicare Advantage business lines in Illinois will be sold to CVS Health.
This collaboration is set to expand CVS Health’s Medicaid and Medicare Advantage base in Illinois.
More About the Collaboration
The strengthening of CVS Health’s Medicaid and Medicare Advantage businesses in Illinois should enable it to cater to a larger consumer network. The company’s verified holistic approach that is in line with physical, behavioral and social determinants of healthcare is also likely to serve as a positive.
The closing of the deal with Centene is contingent upon U.S. federal antitrust approval, receipt of Illinois state regulatory clearance, other routine closing conditions, and the completion of a previously announced merger deal between Centene and WellCare.
Per the agreement, Centene will retain IlliniCare's Medicare-Medicaid Alignment Initiative business and IlliniCare's statewide YouthCare foster care contract. Notably, the financial terms of this transaction will be kept under wraps.
Recent Developments
Recently, CVS Health invested in a crucial development with the aim of bolstering the Medicaid and Medicare business lines.
In November 2019, CVS Health — with its newly-acquired Aetna business — developed a Social Isolation Index to assess each Medicare beneficiary’s risk of social isolation. The mentioned index is based on claims data and multifaceted information on social determinants of health, and will help in identifying high-risk candidates. The company’s outreach program, Resources For Living, which is accessible to all members of Aetna Medicare Advantage and their caregivers, will provide further support to high-risk candidates.
Price Performance
Over the past six months, the stock has rallied 38.3%, outperforming the broader industry’s growth of 27.7%.
Zacks Rank & Stocks Worth a Look
CVS Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) and NuVasive, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics has a projected long-term earnings growth rate of 13.5%.
NuVasive has an expected long-term earnings growth rate of 10.9%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>