03.30.18 - State reaches $2B deal for Fidelis-Centene sale
"Gov. Andrew Cuomo and legislative leaders have agreed to sweeping changes in insurance law that should allow the state to capture $2 billion from the sale of nonprofit health insurer Fidelis without jeopardizing the multi-billion dollar deal. The issue was one of the final sticking points in the state's $168.3 billion spending plan."
"The deal, reached just before legislators left for Passover and Easter, allows the Cuomo administration to obtain a portion of the company's sale price, and collect some of Fidelis' excess reserves should it walk away from the sale and continue as a nonprofit insurer."
"In the end, it provides the state with an enormous pot of money, allows the church control of an approximately $3 billion charity and gives Centene a clear path to take over Fidelis, which most Wall Street analysts have ruled a net win for its long-term business. Centene's stock price has spiked roughly 6 percent in the past two days as optimism increased that a deal would come together."
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