Humana Inc. (NYSE: HUM) announced today that it has completed its
previously announced acquisition of Arcadian Management Services, an
Oakland, Calif.-based company that, through its affiliates, operates
Medicare Advantage HMO plans.
Arcadian's plans have approximately 62,600 Medicare Advantage members in
15 U.S. states: Alabama, Arkansas, Arizona, California, Georgia,
Louisiana, Maine, Missouri, New Hampshire, New York, North Carolina,
Oklahoma, South Carolina, Texas and Washington.
To resolve antitrust concerns, Humana and Arcadian have entered into a
consent agreement with the United States Department of Justice that will
require divestiture of overlapping Medicare Advantage health plan
business in eight areas within Arizona, Arkansas, Louisiana, Oklahoma
and Texas. Humana anticipates that the divestitures would be effective
January 1, 2013.
Net of the divestitures, the acquisition will increase Humana's health
plan membership by approximately 50,000 Medicare HMO members.
Humana and Arcadian are working together to ensure a seamless transition
of the Medicare business. Humana expects no interruption in coverage;
members can continue to see the same health care providers and receive
the same benefits they currently have for the 2012 benefit year.
Humana's acquisition of Arcadian is not expected to materially impact
its financial earnings guidance for the year ending December 31, 2012.
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