WellCare Health Plans Inc. has entered into an agreement with Louisville-based Humana Inc. to acquire select assets of Arcadian Health Plan Inc.
The plans are part of a previously announced, government-required divestiture for Humana to complete its acquisition of Arcadian Health.
Under the agreement, about 5,000 members of Desert Canyon Community Care Medicare Advantage plans in Mohave and Yavapai counties of Arizona will become WellCare of Arizona members, starting in 2013. The transaction is expected to close by the end of the year, pending regulatory approvals.
Humana (NYSE: HUM) completed its acquisition of Arcadian in April 2012. The Oakland, Calif.-based company operates Medicare Advantage HMO plans.
Terms of the acquisition were not disclosed at the time of the purchase.
Arcadian’s plans have about 62,600 Medicare Advantage members in 15 states.
To resolve antitrust concerns, Humana (NYSE: HUM) and Arcadian reached a consent agreement with the U.S. Department of Justice that required divestiture of some Medicare Advantage health plan business in five states.
After the divestitures, the acquisition will increase Humana’s health plan membership by about 50,000 Medicare HMO members. Humana does not expect the acquisition to materially impact its financial earnings guidance for 2012.
via Humana to sell Arcadian assets to WellCare – Louisville – Business First.