Is WellCare a Buy-Out Target?
Expecting more consolidation in the managed-care industry, Goldman Sachs considers Tampa-based WellCare Health Plans a potential buy-out target, according to a Wall Street Journal report.
WellCare is a major player in Florida’s Medicaid program and also said Thursday that it will expand its presence in the Florida Healthy Kids insurance program from 18 to 65 counties.
The consolidation talk stems, at least in part, from the announcement Monday that WellPoint, Inc., is buying Virginia-based Amerigroup Corp. — another managed-care company that is a large player in Florida Medicaid.
The Wall Street Journal reported that the WellPoint deal caused share prices to jump for WellCare and two other managed-care companies, Centene and Molina.
Goldman Sachs said WellCare and Centene have a 30 to 50 percent probability of being bought out, while Molina has a 15 to 30 percent chance, according to the Journal. Centene and Molina also cover Florida Medicaid beneficiaries.