Wellcare Health Plans Inc. acquires two states and a PBM from Meridian for $2.5 billion.

Market Expertz   |     September 18, 2018


Wellcare has a portfolio of medicare, medicaid and medicare prescription drug plans. Meridian has all these three and an extra service in its portfolio which is of Pharmacy Benefits Management. The current PBM market has a growth rate of 9.6% anuualy from 2013-2018 and is a 453 billion USD market in revenue. With this acquisition, wellcare will get an extra drug benefits business named MeridianRX in its portfolio.
Also Michigan and Illinois are amongst the top 10 medicare/medicaid markets in the U.S. where Medicare is the market leader in these 2 cities with 5 lakh members in Michigan and 5.5 lakh members in Illinois. With this acquisition, Wellcare will be leaders of 2 more markets in addition to its already 4 markets. This deal will be made for 2.5 billion USD of which the company will make benefits of around 4.3 billion USD in revenue.
Wellcare expects that its 2018 premium revenues will reach 22.9 billion USD with the help of this acquisition which makes it approximately 27% increase from its 2017 revenue which was 17 billion USD.
With all these things, Wellcare will not only grow its revenue but also its medicare footprint and its portfolio.
Medicare will benefit with having a bigger brand name associated with it. Also its operations will be more structured and will have to shell out less finance compared to earlier.

To know more about the reports in our repository please visit: www.marketexpertz.com/categories

Join Alert Me Now!

Receive weekly email alerts on new market expertz

Sign Up Today