Centene paid $17.3 BILLION for a Medicare growth engine. Seven years later, the goal is break even.
WellCare was sold as a “leading Medicare platform” for growth. As recently as 2023, Medicare Advantage was still a “critical area of future growth.”
Fast-forward to 2027. Nearly one-third of MA plans are being cut and standard MA is exiting 344 counties. What remains is increasingly being refocused around D-SNPs and dual-eligible members — essentially using Centene’s Medicaid footprint as the feeder into Medicare instead of competing broadly in MA. And for 2026, just 6% of Centene’s MA members were in plans receiving Medicare quality bonus payments, versus 68% industrywide.
Sarah London inherited this one. Drew Asher didn’t. He was WellCare’s CFO when Centene bought it, and he’s Centene’s CFO today. Seven years later, the “growth platform” is smaller, being rebuilt around a very different strategy, and trying to get back to zero.
Members lose plans, employees lose jobs, and shareholders absorb the value destruction. Executives who leave can walk away with very nice parting gifts. And one of the few executives with a front-row seat on both sides of the original $17.3B deal is still sitting in the CFO chair. He’s even hanging around for ANOTHER YEAR.
So where exactly is the executive accountability? cough Sarah cough
Because cutting plans, markets, and employees isn’t executive accountability. It’s executive accountability outsourced to everyone but the executives. (Yeah, I used “outsourced” intentionally.) 😂