This week’s update reviews WellCare’s acquisition of Universal American Corp.

WellCare bets on Medicare with $800 million buyout of Universal American | Modern Healthcare, November 17, 2016

WellCare Health Plans will acquire Universal American Corp. in a deal valued at $800 million, bolstering the company’s investment in Medicare Advantage and accountable care organizations.
WellCare will pay $10 per share in the all-cash deal for Universal American, equating to about $620 million based on the company’s latest number of outstanding shares. After factoring in Universal American’s debt and retirement of preferred shares, the deal is worth about $800 million.


Experts believe the Medicare Advantage market, already growing at a feverish pace, will expand further under President-elect Donald Trump and the Republican-controlled Congress, who have embraced the private HMO version of traditional Medicare. Medicare Advantage represents about 27% of WellCare’s revenue, and adding a pure Medicare company like Universal American will immediately give the insurer a bigger footprint.

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