TAMPA, Fla.--(BUSINESS WIRE)--Oct. 31, 2012--
WellCare Health Plans, Inc. (NYSE: WCG) today announced that it has
entered into an agreement to acquire UnitedHealthcare’s Medicaid
business in South Carolina from UnitedHealth Group (NYSE: UNH). The
transaction is subject to regulatory approvals, and WellCare anticipates
that the transaction will close during the fourth quarter of 2012.
As of October 2012, UnitedHealthcare’s Medicaid business in South
Carolina serves approximately 65,000 Medicaid members in 39 of the
state’s 46 counties, including the Columbia and Greenville metropolitan
areas, through the South Carolina Healthy Connections Choices program.
It has a network that includes more than 30 hospitals, 1,800 primary
care physicians, and 2,000 specialists.
“This acquisition offers us a promising growth opportunity in the
attractive South Carolina government programs market, and is
well-aligned with our multi-product strategy,” said Alec Cunningham,
WellCare’s CEO. “We believe the state is making policy changes that
should improve the Medicaid program for managed care plans, and offer
the potential for increased membership.”
About WellCare Health Plans, Inc.
WellCare Health Plans, Inc. provides managed care services targeted to
government-sponsored health care programs, focusing on Medicaid and
Medicare. Headquartered in Tampa, Florida, WellCare offers a variety of
health plans for families, children, and the aged, blind, and disabled,
as well as prescription drug plans. The Company serves approximately 2.6
million members nationwide as of September 30, 2012. For more
information about WellCare, please visit the Company's website at www.wellcare.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking” statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are predictive in nature,
that depend upon or refer to future events or conditions, or that
include words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates," and similar expressions are forward-looking
statements. For example, statements regarding the timing of the closing
of the acquisition of UnitedHealthcare of South Carolina, Inc., and the
upcoming state policy changes to improve the Medicaid program for
managed care plans and offer the potential for increased membership are
forward-looking statements. Forward-looking statements involve known and
unknown risks and uncertainties that may cause WellCare’s actual future
results to differ materially from those projected or contemplated in the
forward-looking statements. These risks and uncertainties include, but
are not limited to, the satisfaction of the closing conditions for the
acquisition, the receipt of regulatory approval for our business
expansion, WellCare’s ability to address operational challenges relating
to new business, WellCare’s ability to effectively execute and integrate
acquisitions, WellCare’s progress on top priorities such as improving
health care quality and access, ensuring a competitive cost position,
and delivering prudent, profitable growth, and WellCare’s ability to
effectively manage growth.
Additional information concerning these and other important risks and
uncertainties can be found under the captions "Forward-Looking
Statements" and "Risk Factors" in WellCare’s Annual Report on Form 10-K
for the year ended December 31, 2011, and in WellCare’s Quarterly Report
on Form 10-Q for the period ended June 30, 2012 and other subsequent
filings by WellCare with the U.S. Securities and Exchange Commission,
which contain discussions of WellCare’s business and the various factors
that may affect it. WellCare undertakes no duty to update these
forward-looking statements to reflect any future events, developments,
Source: WellCare Health Plans, Inc.
WellCare Health Plans, Inc.
Crystal Warwell Walker, 813-206-2697