Fidelis Care, one of the biggest Obamacare health insurers in NY state, is selling its operation to a national public company that specializes in government-sponsored health insurance programs.
The acquisition would help Centene expand its government sponsored healthcare coverage with a leadership position in NY, the company said.
Fidelis, a nonprofit health plan with more than 1.6 million members, now offers plans on the ACA marketplaces as well as Medicaid, Medicare Advantage, Dual Advantage, Child Health Plus, Essential Plan and managed long-term care policies.
Centene, which trades on the New York Stock Exchance, will continue to operate the business under the Fidelis Care name.
Fidelis is a nonprofit and Catholic organization.
Fidelis also sells plans to individuals on the exchange and is a significant player in the Medicare Advantage market, the company said.
Centene said it intends to fund the purchase with $2.3 billion in new equity and $1.6 billion of new long-term debt.
Assuming a January 1 closing date, Centene says it expects the deal to generate pro-forma total revenues of more than $60 billion in 2018.