Centene, parent company of Iowa Total Care, to acquire Magellan

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St. Louis-based health insurer Centene Corp. announced it will buy pharmacy benefit manager Magellan Health for $2.2 billion, CNBC reported. The planned acquisition, announced by the companies on Monday, would expand Centene’s mental health support capacity at a time when 2 out of every 5 Americans are struggling with mental or behavioral health issues associated with the pandemic, Centene officials said. Centene, a Fortune 100 company, provides services to government-sponsored and commercial health care programs, focusing on under-insured and uninsured individuals. Centene completed its acquisition of WellCare a year ago, which expanded its reach to 23 million members in all 50 states, making it the largest Medicaid managed care organization in the country. In Iowa, Centene operates Iowa Total Care, one of the state’s Medicaid managed care providers, which occupies an 80,000-square-foot office building at R&R Realty’s Westfield office complex in West Des Moines. Centene and Magellan Health expect to complete the transaction in the second half of 2021.