Word on the street (StreetInsider, to be specific) is that Humana has its eye on a shiny new purchase: Medicaid managed-care organization (MCO), Centene.
A recent Fierce Healthcare article gives us the skinny: “The speculation is based on chatter that a Humana private jet was spotted near Centene’s headquarters in St. Louis.” And while we can neither confirm nor deny the credibility of this claim, this is big enough news that people are on the lookout. Why? Because this isn’t the first time rumors like this have swirled.
Humana’s been known to drop chunks of change to expand its ever-increasing empire.
Remember this acquisition, for Kindred at Home?
And this one of Onehome?
Stacks on stacks on stacks.
But if true, this one would change up Humana’s game a little. Instead of more big moves into senior care, an acquisition of Centene would amp up its presence in the managed care space.
Per Fierce Healthcare, Centene is already big in the MCO world and has a lot of assets behind them, including the addition of Wellcare Health Plans to its roster in January 2020. Oh, and by the way—Centene’s purchase of Wellcare Health Plans created one of the largest managed care organizations, with 22 million members across 50 states. No small potatoes here.
Per the article, Centene had a stellar Q2. And, according to Forbes, Humana also had a top Q2: “Humana profits eclipsed $700 million in the second quarter on strong Medicare Advantage enrollment.”
This move from Humana will stack both its Medicare Advantage and its Medicaid managed care portfolios.
Does consolidation equate to better care? Based on Humana’s track record, we can’t say we have much evidence that it does.