Queens-based nonprofit health insurer Fidelis Care has reached a deal to be acquired for $3.75 billion by Centene Corp., a Fortune 500 company and the the largest Medicaid managed care organization in the country.
In its announcement Tuesday, Centene said the deal expands its national leadership in government sponsored health care into New York. Through the deal, Centene inherits a leading presence in New York, where Fidelis Care has 1.6 million members as of June 30. Fidelis had total revenues of $4.8 billion for the first half of the year, according to the announcement. Centene said the combined company would have revenues of more than $60 billion next year.
Fidelis offers Qualified Health Plans sold on the state insurance marketplace, Child Health Plus, the Essential Plan, Medicaid and Medicare Advantage products.
Centene described Fidelis as having a successfully diversified business,” with a statewide network of approximately 70,000 providers.
“Centene’s and Fidelis Care’s missions are fully aligned in terms of promoting health through high quality, accessible care and services for all and advocating for health policy that accords true dignity and respect for all people, especially the underserved,” said Michael F. Neidorff, chairman, president and CEO of Centene.
Centene said it will keep Fidelis’ 4,000 employees, Queens headquarters and additional offices. Along with locations further upstate, Fidelis has satellite locations in Poughkeepsie and Suffern, and community locations in Yonkers and Spring Valley.
Fidelis has the largest share of Qualified Health Plans sold on the state’s exchange and the largest share of essential plans, according to the New York State of Health 2017 Open Enrollment Report.
The company is also a leader on the state insurance market in Westchester. Fidelis has the largest share of Westchester County’s Qualified Health Plan market. Just under 4,000 customers in Westchester bought a Qualified Health Plan through Fidelis last enrollment period, about 34 percent of customers.
In Westchester, 7,168 customers bought an Essential Plan through Fidelis on the state exchange, leading the county’s market with 31 percent of customers.
In a separate statement, Fidelis said joining with Centene gives it the “the support, investment, and innovation that are necessary to meet the health care needs of New York State residents – today and in the future.”
Centene said it expected to close the deal early next year.