Health insurers migrating to Medicare, Medicaid

Flash back a few decades and health insurers looked a lot different. Once viewed as mere claims processors for employer-sponsored plans, health insurance companies in recent years have picked up a growing number of patients who receive benefits from public health programs, including Medicare and Medicaid. For some insurance companies, these taxpayer-funded programs have become their bread and butter.

The company that would form if Centene Corp. and WellCare Health Plans are combined as planned in a deal announced last week is just one example of how the health insurance business continues to change. Much of the attraction of buying WellCare is its Medicare Advantage experience.

The growing dependence on government programs has necessitated a...