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Centene Makes $6.3B Bid for Fellow Insurer Health Net

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TOM MURPHY, AP Business Writer

Centene has jumped into the mix of managed-care companies scrambling to bulk up as the health care overhaul changes their business with a $6.3-billion bid for fellow insurer Health Net.

The deal announced Thursday gives St. Louis-based Centene a chance to expand in two hot growth areas for health insurers, the state- and federally-funded Medicaid program for the poor and people with disabilities; and the federally-supported Medicare Advantage program, which has seen its overall enrollment triple over the past decade.

The health care overhaul is expanding Medicaid coverage to millions as it seeks to provide health insurance for more people. This comes as more states are turning to insurers to help them manage their Medicaid populations.

Centene said the Health Net deal will strengthen its presence in the nation’s largest Medicaid market, California, and create a combined company with about 6 million Medicaid members, making it one of the largest in the country.

“Both Centene and Health Net recognize that scale and diversification are becoming increasingly important,” Centene Chairman and CEO Michael Neidorff told analysts after the deal was announced.

The acquisition also will build Centene’s Medicare business in several western states. As the baby boom generation ages, insurers are seeking to offer more Medicare prescription drug coverage and Medicare Advantage plans, which are privately run versions of the federally-funded program for people over age 65 and the disabled.

About 16.8 million people were enrolled in Medicare Advantage plans as of March, according to the nonprofit Kaiser Family Foundation, which studies health care issues. That figure grew by more than 1 million from last year.

“I would say the growth prospect of Medicare is the prime reason someone would add that membership on to their books,” said Vishnu Lekraj, an analyst who follows the industry for Morningstar.

Investors and analysts have been expecting huge acquisitions in a managed care sector that is looking to grow as it adapts to the health care overhaul. Some say the Supreme Court’s recent decision to uphold a key element of the federal law might spark deals because it removes an element of uncertainty that had been hanging over the companies.

On June 20, Anthem went public with a more than $47 billion cash-and-stock bid for Cigna, which Cigna rejected in a letter sent to Anthem the next day.

Both the Wall Street Journal and Bloomberg have reported, citing sources they have not identified, that Aetna is pursuing the Medicare Advantage provider Humana Inc., in a deal that would join the nation’s third- and fifth-largest health insurers.

“The wave of consolidation sweeping the (managed care) industry is accelerating as players seek to establish their own market position,” Leerink analyst Ana Gupte said in a note to investors announcing the Centene deal.

She added that she expects the nation’s biggest insurer, UnitedHealth Group Inc., to jump in with a competing bid for Health Net or possibly both companies.

A UnitedHealth spokesman said his company doesn’t comment on rumors or speculation.

Insurers see several potential advantages to combining. An acquisition would give them more customers over which to spread the costs of providing coverage and processing claims, and it lets them diversify and expand into new markets faster than they can by signing up new customers.

Combining with a competitor also can help an insurer quickly strengthen its technology resources, which is an increasingly vital part of the business.

Centene Corp. plans to pay a combination of cash and stock valued at $78.57, based on Wednesday’s closing price, for each Health Net share. That’s a premium of about 21 percent over Health Net’s closing price of $65.06. The deal totals about $6.8 billion counting debt.

Centene shareholders would have about a 71 percent stake in the combined company, which Neidorff will lead as chairman, president and CEO.

Both companies’ boards have approved the acquisition, which is expected to close early next year.

Shares of Health Net soared 11 percent, or $7.17, to $72.23 after the deal was announced Thursday, while Centene sank about 6 percent, or $4.82, to $76.08.

Like other health insurers, the shares of both companies have hit all-time high prices this year and advanced much further than the broader market. Centene’s stock price was up about 56 percent as of Wednesday, while Health Net had advanced 22 percent.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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For Cervical Cancer Month, Medical Community Focused on Education

January was Cervical Cancer Awareness Month. Physicians, advocates and others in the medical community commemorated the month by raising awareness about a form of cancer they say is highly preventable and treatable. Cervical cancer is caused by a virus called the human papillomavirus (HPV) and it develops slowly over time but can be prevented with proper care in girls as young as 13 years old.

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A Mayo Clinic article published last month stated that Black women are more likely to be diagnosed and die of cervical cancer, compared to White women in the U.S. 2,000 Black women are diagnosed every year with cervical cancer and 40% die as a result.
A Mayo Clinic article published last month stated that Black women are more likely to be diagnosed and die of cervical cancer, compared to White women in the U.S. 2,000 Black women are diagnosed every year with cervical cancer and 40% die as a result.

By Magaly Muñoz

January was Cervical Cancer Awareness Month.

Physicians, advocates and others in the medical community commemorated the month by raising awareness about a form of cancer they say is highly preventable and treatable.

Cervical cancer is caused by a virus called the human papillomavirus (HPV) and it develops slowly over time but can be prevented with proper care in girls as young as 13 years old.

Sonia Ordonez, an OBGYN and gynecology surgeon at Kaiser Permanente, stated that as soon as people with cervixes reach the maturity reproductive age, they should start taking preventative measures like getting the HPV vaccine. The vaccine involves a series of two-doses for people aged 9 through 14 or three-doses for people 15 through 45 years old.

“I see a lot of young women who can’t remember or may not have gotten [the vaccine] when they were younger, or maybe got one, but we can give them the series of vaccines and restart at any point in time,” Ordonez said.

She said that cervical cancer is not the only cancer caused by HPV. Strains of the virus can also lead to throat, anal and penile cancers.

Screening is also an effective way to check for cervical cancer and should be done every three years after someone turns 21, doctors recommend. It is best to start as early as possible to catch occurrences early.

Ordonez said that this cancer is also more likely found in people of color and has led to more deaths overall.

A Mayo Clinic article published last month stated that Black women are more likely to be diagnosed and die of cervical cancer, compared to White women in the U.S.

2,000 Black women are diagnosed every year with cervical cancer and 40% die as a result.

“This disparity is not due to genetic differences among White, Black or Hispanic women, but rather related to systemic racism, access to healthcare and socioeconomic factors,” Dr. Olivia Cardenas-Trowers, a Mayo Clinic urogynecologist, said in the article.

Ordonez stated that immigrant women are also highly susceptible to the cancer, as many Latin American countries may not have accessibility to screenings or lack of insurance makes it harder for them to get tested.

Hispanic women are 40% more likely to be diagnosed with cervical cancer, and 30% more likely to die from it, as compared to non-Hispanic White women, according to the Office of Minority Health.

Family medicine physician, Joy Anyanwu, stated that the pandemic contributed to hesitancy about getting cervical cancer screenings among some women. Other factors are people’s aversion to vaccines, parents not wanting to believe that their children are or will become sexually active, and doubt about the overall effectiveness of the vaccine.

“The vaccine is very safe — over 97% effective in preventing cervical cancer,” Anyanwu said. “Even if you aren’t having sex, the earlier you start would actually help.”

Anyanwu said she understands that parents might not want to ask questions about their children’s reproductive health, but it’s a mindset that can be a barrier to having important conversation about prevention or care.

To keep families their families and communties healthy, the doctor emphasized that people should prioritize keeping up with their vaccine series and going to screenings every year.

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Sacramento Lawmakers Step Up Push for “Smart Solutions” on Crime, Public Safety

Assemblymember Tina McKinnor (D-Inglewood) and Sen. Lola Smallwood-Cuevas (D-Ladera Heights), both members of the California Legislative Black Caucus (CLBC), have joined other lawmakers and criminal justice reform advocates to address public safety in the state.  On April 2, CLBC members gathered outside the State Capitol for the unveiling of the #SmartSolutions Public Safety Policy Platform, a package of 30 bills that addresses the top concerns of retailers, retail workers, the fentanyl crisis, and support for victims and survivors of crime.

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Assemblymember Tina McKinnor (D-Inglewood), second right, and Assemblymember Eloise Gómez Reyes (D-Colton), right, have introduced bills that would protect victims, reduce recidivism, and treat substance-use disorders. CBM photos by Antonio Ray Harvey.
Assemblymember Tina McKinnor (D-Inglewood), second right, and Assemblymember Eloise Gómez Reyes (D-Colton), right, have introduced bills that would protect victims, reduce recidivism, and treat substance-use disorders. CBM photos by Antonio Ray Harvey.

By Antonio Ray Harvey, California Black Media

Assemblymember Tina McKinnor (D-Inglewood) and Sen. Lola Smallwood-Cuevas (D-Ladera Heights), both members of the California Legislative Black Caucus (CLBC), have joined other lawmakers and criminal justice reform advocates to address public safety in the state.

On April 2, CLBC members gathered outside the State Capitol for the unveiling of the #SmartSolutions Public Safety Policy Platform, a package of 30 bills that addresses the top concerns of retailers, retail workers, the fentanyl crisis, and support for victims and survivors of crime.

“Instead of being tough on crime, we need to be smart on crime,” Smallwood said at the press briefing. “I am not saying that we’re not going to be holding folks accountable for the actions that they take. But we will not rely on incarceration as a solution.”

McKinnor, Smallwood-Cuevas, a coalition of advocates, addiction treatment experts, and Yurok Tribal leaders joined Sen. Nancy Skinner (D-Berkeley), and Assemblymember Eloise Gómez Reyes (D-Colton) at the press conference organized to promote legislative solutions that ensure safety and justice.

Organizers say #SmartSolutions is an intersectional campaign that combats criminalization and mass incarceration by pushing for the redirection of state resources to fund housing, health care, schools, services for victims, and programs that reduce recidivism and promote accountability, beyond incarceration.

Opponents of the bills proposed in the #SmartSolutions campaign say their colleagues who support reform-focused strategies are looking the other way on crime and encouraging lawlessness.

For example, Assemblymembers Wendy Carillo (D-Boyle Heights), Carlos Villapudua (D-Stockton) and Mike Gipson (D-Carson) are supporting Assembly Bill (AB) 1990, legislation that would allow a peace officer to arrest shoplifters without a warrant or without witnessing the theft.

Assemblymember James Ramos (D-Highland) authored AB 1772 and introduced it in January. The legislation proposes sterner penalties for retail theft, particularly for repeat offenders.

The #SmartSolutions campaign is co-sponsored by Ella Baker Center for Human Rights, Smart Justice California, American Civil Liberties Union (ACLU) California Action, Californians for Safety and Justice, and Californians United for a Responsible Budget (CURB).

Smallwood recently introduced two bills she hopes will provide solutions to the escalating retail theft problem in the state. Senate Bill (SB) 1446 addresses theft, technology and job security in retail establishments and aims to minimize workplace violence, according to supporters. SB 1282 requires counties to expand the use of a diversion program for theft cases.

“Restorative Justice is the essential pillar of making our criminal justice system more fair, just, and equitable,” McKinnor said. “Restorative justice recognizes the trauma of victims and preparatory of crimes and provides a constructive space for victims to find healing.”

Dr. Amiee Moulin, founder of the California Bridge program and chief of the Division of Addiction Medicine at the University of California (UC) Medical Center, said drug “addiction and overdose” are taking a toll on patients, families and the community.

“I believe that California’s proposed legislation focused on expanding access to treatment is a crucial step towards saving lives,” Moulin said. “By removing barriers to care and embracing evidenced-based strategies we can provide patients the support they need to heal and recover.”

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California Black Media

Stakeholders Warn Lawmakers of Expanding Aging Population; Older Black Californians Included

The California Commission on Aging (CCoA) hosted its second annual forum focused on challenges facing Californians over 65 years old. Titled “Aging and Disability Issues: What Legislative Staff Need to Know for 2024,” the virtual event was organized to bring awareness to lawmakers that California’s aging adults are living longer and to emphasize the importance of developing policy to support this growing population, according to organizers.

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The discussion encompassed a range of topics including planning for long-term care, assisted living, enhancing healthcare quality, technology use, services for senior adults with disabilities, state budget considerations, and the best policies and practices to help aging adults stay healthy, active, independent, and confident.
The discussion encompassed a range of topics including planning for long-term care, assisted living, enhancing healthcare quality, technology use, services for senior adults with disabilities, state budget considerations, and the best policies and practices to help aging adults stay healthy, active, independent, and confident.

By Antonio Ray Harvey, California Black Media 

The California Commission on Aging (CCoA) hosted its second annual forum focused on challenges facing Californians over 65 years old.

Titled “Aging and Disability Issues: What Legislative Staff Need to Know for 2024,” the virtual event was organized to bring awareness to lawmakers that California’s aging adults are living longer and to emphasize the importance of developing policy to support this growing population, according to organizers.

This year’s meeting included the perspectives of gerontologists and other subject-matter experts who provided data and insights critical to informing policy.

Former Assemblymember Cheryl Brown (D-San Bernardino), who chairs the CCoA’s Executive Committee, began the discussion.

“The landscape of California is changing. Aging is changing and it’s changing California,” Brown said. “Older adults are living longer, and the cohort is becoming more ethnically diverse, underscoring the need to develop culturally, appropriate services.”

The discussion encompassed a range of topics including planning for long-term care, assisted living, enhancing healthcare quality, technology use, services for senior adults with disabilities, state budget considerations, and the best policies and practices to help aging adults stay healthy, active, independent, and confident.

The CCoA acts as the principal advocate for older Californians and as a catalyst for change that supports and celebrates Californians as they advance in age. The CCoA advises the Governor and Legislature, along with state, federal, and local agencies on programs and services that affect senior adults.

Statewide organizations that participated in the event included LeadingAge California, Disability Rights California, California Foundation for Independent Living Centers, and California Collaborative for Long-Term Services and Supports.

In addition, representatives and staff members of Choice In Aging, Age Watch Newsletter, California Elder Justice Coalition, California Association of Area Agencies on Aging, and the California Long-Term Care Ombudsman Association were presenters during the 90-minute discussion.

“In California, we know that older adults are underserved and unserved relative to their needs,” CCoA Executive Director Karol Swartzlander said. “In stark terms, we know that 4% of older adults who need service actually receive services.”

According to the California Department of Aging (CDA), California’s aging population is expected to reach an estimated 4.5 million individuals ages 60 to 69 and 4.2 million senior adults ages 70- to 79 by the year 2040, based on information from CDA’s Master Plan for Aging. 

Recognizing that the state’s 65-plus population is projected to grow to 8.6 million by 2030, Gov. Gavin Newsom issued an executive order calling for the development of the MPA.

Debbie Toth, from ChoiceInAging, said the MPA is a model of “how we can do better” to service the needs of older adults. ChoiceInAging, Toth said, “is going to be shopping accessible transportation and rate increases for adult day healthcare.

“But we need to have legislation to do it,” Toth told legislative staff members.

A 2016 California Health Report (CHR) revealed that by 2030, 18% of the state will be 65 or older. Projections in that study also indicated that 52% of these older adults would be from diverse minority groups but “no population is expected to be harder hit than African Americans,” the report stated.

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