Big Merger Changes Medicaid Insurance Equation In Georgia

The merger of insurers Centene and WellCare will create a company with a dominant position in Georgia’s managed care market for Medicaid.

The $17 billion deal, which closed Thursday, will give the resulting entity roughly two-thirds of the Medicaid HMO business in the state.

And that market power has medical providers worried about the company driving tougher bargains in setting rates for reimbursements on medical services. Leading pharmacy and physician organizations opposed the merger here in Georgia, but the deal received state regulatory approval in September.