{"id":694,"date":"2022-02-15T21:10:38","date_gmt":"2022-02-15T21:10:38","guid":{"rendered":"https:\/\/sites.sandiego.edu\/cpil-blog\/?p=694"},"modified":"2022-02-15T21:10:38","modified_gmt":"2022-02-15T21:10:38","slug":"department-of-managed-health-care-approves-centene-acquisition-of-magellan-health","status":"publish","type":"post","link":"https:\/\/sites.sandiego.edu\/cpil-blog\/2022\/02\/15\/department-of-managed-health-care-approves-centene-acquisition-of-magellan-health\/","title":{"rendered":"Department of Managed Health Care Approves Centene Acquisition of Magellan Health"},"content":{"rendered":"<h3>By William Espinosa<\/h3>\n<p>On December 30, 2021, the Department of Managed Health Care (DMHC) <a href=\"https:\/\/perma.cc\/65VU-2WZA\">announced<\/a> that it had <a href=\"https:\/\/perma.cc\/BMT4-QVHW\">approved<\/a> Centene Corporation\u2019s acquisition of Magellan Health, Inc. (Magellan), with certain conditions. Magellan is the parent entity for two DMHC-licensed plans: Human Affairs International of California (HAI-CA) and Magellan Health Services of California, Inc.\u2013Employer Services (MHSC). The acquisition is contingent on Centene and Magellan\u2019s (\u201cthe plans\u201d) compliance with <a href=\"https:\/\/perma.cc\/8WAB-C65X\">conditions<\/a> made by DMHC \u201cto ensure the merger does not adversely impact enrollees or the stability of California\u2019s health care delivery system.\u201d Among several other financial and competition-based conditions, the plans will be required to help to control health care costs and must keep premium rate increases to a minimum. Specifically, the plans will not be allowed to increase premiums as a result of acquisition costs. Magellan must also continue its market presence in California, and HAI-CA must continue to fulfill its existing contracts to provide behavioral health services at the same rates for at least two years. Furthermore, Centene must invest $10 million \u201cto support the acceleration of behavioral health integration into primary care practices in California\u2019s health care delivery system.\u201d A third-party monitor will be set in place to ensure compliance with competition-related conditions, including that the plans continue to operate as separate businesses. Centene must reimburse DMHC for the cost of the third-party monitor.<\/p>\n<p>Magellan will continue to operate independently under Centene&#8217;s Health Care Enterprises umbrella, and the Magellan leadership team will continue to lead the organization.<\/p>\n<p>On January 12, 2021, Magellan filed notice with DMHC outlining the proposed acquisition. After <a href=\"https:\/\/perma.cc\/E28P-SMAT\">determining<\/a> the proposed acquisition met the requirements of a major transaction, Deborah Haas Wilson, PH.D., was retained by the Office of the California Attorney General on behalf of DMHC, to conduct an independent analysis of the anti-competitive impact on subscribers and enrollees as a result of the proposed acquisition. On October 27, 2021, DMHC held a public <a href=\"https:\/\/perma.cc\/ED8C-2JNX\">meeting<\/a> to address the proposed acquisition. The public comment period for this meeting concluded on November 3, 2021.<\/p>\n<p>Representatives from Centene and Magellan accepted and signed the DMHC conditions on December 28, 2021.<\/p>\n<p>&nbsp;<\/p>\n<a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-facebook nolightbox\" data-provider=\"facebook\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Facebook\" href=\"https:\/\/www.facebook.com\/CPILUSD\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px;margin-right:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"Facebook\" title=\"Follow us on Facebook\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/facebook.png\" \/><\/a><a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-twitter nolightbox\" data-provider=\"twitter\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Twitter\" href=\"https:\/\/twitter.com\/cpilusd\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"twitter\" title=\"Follow us on Twitter\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/twitter.png\" \/><\/a>","protected":false},"excerpt":{"rendered":"<p>By William Espinosa On December 30, 2021, the Department of Managed Health Care (DMHC) announced that it had approved Centene Corporation\u2019s acquisition of Magellan Health, Inc. (Magellan), with certain conditions. Magellan is the parent entity for two DMHC-licensed plans: Human <a class=\"more-link\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2022\/02\/15\/department-of-managed-health-care-approves-centene-acquisition-of-magellan-health\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1013,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132906,133032],"tags":[137938,132908,137994,137993,133014,137995],"coauthors":[132864],"class_list":["post-694","post","type-post","status-publish","format-standard","hentry","category-department-of-managed-health-care","category-enforcement","tag-centene","tag-dmhc","tag-hai","tag-magellan","tag-merger","tag-mhsc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Department of Managed Health Care Approves Centene Acquisition of Magellan Health - Consumer Protection Policy Center - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2022\/02\/15\/department-of-managed-health-care-approves-centene-acquisition-of-magellan-health\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Department of Managed Health Care Approves Centene Acquisition of Magellan Health - Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"By William Espinosa On December 30, 2021, the Department of Managed Health Care (DMHC) announced that it had approved Centene Corporation\u2019s acquisition of Magellan Health, Inc. 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