Global health insurance provider Aetna has signed an agreement to dispose of all of its standalone Medicare Part D business to a subsidiary of WellCare Health Plans.
The transaction is conditional to the closing of CVS Health’s proposed acquisition of Aetna, as well as regulatory approvals and other customary closing conditions.
The agreement covers both Individual and Group standalone Part D members.
Post- divestiture, Aetna will continue to administer and offer service and support for the plans that are impacted by this transaction throughout the 2019.
In a statement said: “It’s important to note all other plans and products, including our Individual Medicare Advantage (MA), integrated Medicare Advantage with Part D (MAPD) and standalone (MA-only) Group Medicare Advantage, Medicare Supplement, Ancillary, and Commercial plans and products, are not impacted by this sale.”
WellCare operates as a managed-care operator and focuses on both Medicare and Medicaid coverage. The company already serves approximately 1.1 million Part D members.
The acquisition of Medicare Part D represents WellCare’s third transaction over the last the two years. In 2017, the company purchased Universal American and recently acquired Meridian Health.