Centene Corporation has a diverse portfolio of subsidiaries that operate in various healthcare markets. Centene's subsidiaries have made significant business deals and transactions over the years.
One notable example is Health Net, a subsidiary of Centene, which acquired Ambetter in 2012. This deal expanded Health Net's presence in the Affordable Care Act (ACA) marketplace.
Centene's subsidiary, Ambetter, has seen significant growth since its acquisition by Health Net. Ambetter offers health insurance plans in 15 states and has a strong presence in the ACA marketplace.
Centene's subsidiaries have also made strategic investments in healthcare companies to expand their offerings and reach.
Business Transactions
Centene Corporation has been actively involved in business transactions, acquiring and merging with other companies to expand its reach and services.
In 2015, Centene acquired Health Net for $6.8 billion, establishing combined headquarters in St. Louis, Missouri.
This acquisition led to Health Net Federal Services becoming a separate subsidiary of Centene, operating independently within the company.
In 2018, Health Net in Arizona was merged into other Centene holdings to form Arizona Complete Health, with Martha Smith named as its Plan President and CEO.
Brian Ternan was appointed CEO of Health Net in California in September 2019, overseeing operations in that state.
Overcharge Settlement
Centene Corp. will pay $215 million to resolve California False Claims Act allegations that two of its managed care subsidiaries inflated drug costs to extract money from Medi-Cal.
This is not the first time Centene has faced allegations of overcharging. California Healthline reports that Centene and its subsidiaries are being investigated in more than 20 states for similar allegations of prescription drug overcharges.
The investigation found that Centene's managed care subsidiaries, California Health & Wellness and Health Net, reported inflated figures for the costs they incurred in providing prescription drugs between 2017 and 2018.
The inflated prices were due to Centene leveraging advantages in its pharmacy benefit manager contracts to save its managed care plans $2.70 per prescription drug claim over the two years.
The $215.4 million settlement recovers twice the value of Centene's inflated price reporting.
This settlement is a win for the state of California, as it brings resources directly back to the people who rely on Medi-Cal.
Mergers and Acquisitions
In 2015, Centene Corporation acquired Health Net for $6.8 billion, a significant business transaction that had a lasting impact on the healthcare industry.
The acquisition was completed in March 2016 and combined headquarters were established in St. Louis, Missouri.
Health Net Federal Services (HNFS) became a separate subsidiary of Centene following the acquisition.
In 2018, Health Net in Arizona was merged into other Centene holdings to form Arizona Complete Health, with Martha Smith named as its Plan President and CEO.
Brian Ternan was appointed CEO of Health Net in California in September 2019, leading operations in that state.
Frequently Asked Questions
Which companies does Centene own?
Centene owns 7 companies, including WellCare Health Plans, Magellan Health, and Acariahealth, Inc. These subsidiaries operate in the health care and pharmaceutical industries.
What is the controversy with Centene?
Centene Corporation is at the center of a controversy over allegedly overcharging California's Medi-Cal program by misreporting prescription drug costs. The company faces a $215 million settlement over these allegations.
Sources
- https://www.zippia.com/centene-careers-2227/subsidiaries/
- https://www.centene.com/who-we-are/subsidiaries.html
- https://www.healthleadersmedia.com/payer/centene-pay-215m-resolve-medi-cal-drug-overcharges
- https://en.wikipedia.org/wiki/Health_Net
- https://www.techtarget.com/healthtechsecurity/news/366595332/Accellion-Breach-Tally-for-Centenes-Subsidiaries-13M-Patients-Impacted
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