Today, WellCare Health Plans completed their acquisition of Care1st Arizona, the Phoenix-based company comprised of subsidiaries Health Plan Arizona, Inc. and One Care by Care1st Health Plan of Arizona, Inc.
The deal brings 115,000 Medicaid and Medicare members in Maricopa and Pima counties over to WellCare.
“We are pleased to announce the completion of this acquisition and welcome Care1st Arizona to our family of health plans,” said Ken Burdick, CEO of WellCare in a press release. “This acquisition marks our entrance into the eleventh Medicaid state, further geographically diversifying our business in an attractive market.”
With the sale finalized, WellCare tapped Care1st Arizona alum, Scott Cummings, to be its state president in Arizona. Cummings served as chief administrative officer for Care1st Arizona, chief operating officer at Phoenix Health Plan/Abrazo Advantage Health Plan, and administrative director for Cigna Community Choice.
“I spent nearly 10 years leading the Care1st Arizona business and am excited to join WellCare, which shares our strong commitment to delivering high-quality care for Medicaid and Medicare beneficiaries. We will continue to support our members’ health care needs through our integrated, community-oriented approach.” Cummings said as he commented on the transition.
In addition to the Care1st deal, WellCare has announced their intentions to purchase Phoenix Health Plans and Universal American Corp. Both deals are expected to close during the second quarter of 2017.
WellCare officials announced last month that they anticipated a boost in profitability during 2017 because of the Care1st and Universal deals. They expect earnings between $6 and $6.25 a share this year, compared to $5.35 to $5.45 per share in 2016.