WellCare buys some assets of HealthFirst as it prepares to enter N.J. Medicaid market

WellCare Health Plans, Tampa, Fla., announced on Sept. 30 that it has entered into an agreement to buy certain assets of Healthfirst Health Plan of New Jersey.

New Jersey recently granted WellCare permission to begin offering Medicaid managed care in Essex, Hudson, Middlesex, Passaic and Union counties starting Dec. 1, though the CMS still has to give final approval. New Jersey would become the ninth state in which WellCare provides managed-care services to Medicaid beneficiaries. WellCare already serves about 2,000 Medicare Advantage members and 14,000 Medicare Prescription Drug Plan members in New Jersey.

“New Jersey's healthcare goals and policies align well with our strategic focus on the Medicaid and Medicare populations,” WellCare CEO Alec Cunningham said in a news release. “We look forward to continuing our strong relationship with the state to deliver quality, cost-effective healthcare solutions for New Jersey's most vulnerable residents.”

Terms were not disclosed for the acquisition, which is expected to close in the first quarter of 2014. Since January, WellCare has acquired two Medicaid providers in other states—Missouri Care, a subsidiary of Aetna, and the South Carolina Medicaid business of UnitedHealth Group.

Follow Rachel Landen on Twitter: @MHrlanden