S&P: WellCare view to positive

S&P said it affirmed its BB rating on WellCare Health Plans Inc. and revised the outlook to positive from stable.

“Historically, our view of WellCare's business profile has been constrained by the company's Medicaid revenue concentration in a few states,” the agency said in a news release.

“But it has successfully expanded into new markets, such as Nebraska and Arizona, winning seven out of seven renewals in the past three years and showing solid growth in both its Medicaid and Medicare Advantage segments.

“This has enabled the Medicaid segment to perform more consistently by increasing margin predictability.”

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