Doctor Becomes Billionaire as Obamacare Begets Medicaid Riches

Catering to Detroit and Chicago’s poor has made the Cottons rich.

David Cotton and his family spent two decades building Meridian Health Plans into the biggest private provider of Medicaid benefits in Michigan and Illinois. It serves about 1.1 million members, with more than $4.3 billion of revenue forecast for 2018.

Now they’re cashing out. WellCare Health Plans Inc. announced in May that it’s buying Meridian for $2.5 billion, a deal that includes two state insurance businesses and a pharmacy benefits manager.

Cotton, 67, his wife Shery, and their three sons own the entire company, according to filings. The sale ...