Cigna enters agreement with Humana to purchase Medicare Advantage plans in Texas, Arkansas

Cigna (NYSE: CI) today announced that it has come to an agreement with Humana to purchase select Medicare Advantage plans in Texas and Arkansas. The plans in the three markets - Amarillo, Longview-Marshall and Texarkana - are part of a previously announced government-stipulated divestiture for Humana to complete its acquisition of Arcadian Health.

Effective January 1, 2013, the approximately 3,500 Humana or Arcadian members impacted by the divestiture will join more than one million customers who access HealthSpring's physician engagement model that works collaboratively with doctors to provide access to high quality, coordinated care that is focused on prevention and total body wellness.

"We welcome our new customers to our talented team of doctors and staff that have proudly served our customers for over a decade," HealthSpring President Herb Fritch said. "At HealthSpring, we dedicate significant resources to meet the individual needs of each and every one of our customers and we look forward to delivering our service to more Texas and Arkansas seniors."

As a leading health plan in the United States focused on Medicare Advantage, HealthSpring has developed an innovative approach that bridges the gap faced by many Medicare beneficiaries and ensures customers receive all the traditional benefits of Original Medicare and much more at an affordable price. Cigna and HealthSpring are working collaboratively with Arcadian and Humana to ensure a seamless transition for affected customers.

"Our physician engagement model works closely to help support the doctor-patient relationship, creating high satisfaction for all parties involved," added Fritch. "I am confident that our new customers will appreciate our unique approach and plan options, cost savings and strong focus on prevention to help keep them active and healthy."

As a result of this agreement, HealthSpring expects to extend its service area for the first time to Arkansas seniors in Columbia, Hempstead, Howard, Lafayette, Little River, Miller, Nevada and Sevier counties. In Texas, HealthSpring currently offers coverage in forty nine counties and will add 10 new counties from this agreement: Armstrong, Bowie, Carson, Cass, Deaf Smith, Harrison, Oldham, Potter, Randall and Titus counties. Membership in existing HealthSpring Texas counties, Gregg and Henderson, are also part of the agreement.

The transaction is expected to close at the end of 2012 following customary regulatory approval.