Humana to acquire California-based Medicare Advantage HMO
Published on September 23, 2011 at 12:20 PM
Humana Inc. (NYSE: HUM) announced today that it has signed an agreement to acquire MD Care, a California-based Medicare Advantage HMO with approximately 15,000 members in Southern California. Terms were not disclosed.
“As Humana continues growing its Medicare business in the western U.S., MD Care offers an opportunity to expand our Medicare footprint and the suite of products and services we offer in California”
MD Care was founded in 2007 and offers Medicare beneficiaries a choice of plans with comprehensive and value-added alternatives to traditional Fee-for-Service Medicare, including Medicare Advantage medical plans; Medicare Advantage - prescription drug plans (include medical and drug coverage); and Medicare Advantage special needs plans. MD Care's members reside in four Southern California counties: Los Angeles County, Orange County, San Bernardino County and Riverside County.
"As Humana continues growing its Medicare business in the western U.S., MD Care offers an opportunity to expand our Medicare footprint and the suite of products and services we offer in California," said Thomas J. Liston, senior vice president of senior products for Humana. "As one of the nation's leading Medicare companies, with more than 4.3 million Medicare members nationwide and more than 200,000 Medicare members in California, Humana is committed to continued growth in California."
MD Care's 2010 revenue was $155 million. The transaction is subject to both federal and state regulatory approvals and is expected to close in late 2011. Humana's acquisition of MD Care is not expected to materially impact its financial earnings guidance for the year ending December 31, 2011.