Washington, D.C., partner T.J. Sullivan was quoted in a BNA’s Health Law Reporter article titled “Consumers Push Back on Proposed Health Plan Merger.” The article discusses the proposed merger of Centene Corp. with Fidelis Care, which has prompted concerns among health care advocates in New York State since Centene, a for-profit company, is seeking to acquire Fidelis, a nonprofit plan, for $3.75 billion. Advocates worry how Fidelis’ assets will be distributed and what impact this deal will have on the public.

The article explains that most state laws require that the assets of conversions such as the one between Centene and Fidelis are permanently dedicated to charitable purposes. These laws vary from state to state; for example, T.J. explains that Minnesota “has historically allowed only nonprofit health plans to operate in the state, despite the ironic headquarter location of the largest for-profit, United, just outside Minneapolis.” He added that “[l]ast year, the Legislature enacted a new law authorizing for-profit plans, but promptly imposed a two-year moratorium on acquisitions or conversions of not for profit plans due to concerns about the lack of clear standards for same.”

Source: BNA’s Health Law Reporter