Health insurer Humana Inc. of Louisville, Kentucky announced Thursday that it has signed an agreement to acquire Arcadian Management Services, a Medicare Advantage HMO with approximately 64,000 members in 15 states. Terms of the agreement were not disclosed.
Founded in 1996 and headquartered in Oakland, California, Arcadian provides Medicare Advantage coverage through affiliates in 15 states, including Arizona, Arkansas, California, Georgia, Louisiana, Maine, Missouri, New Hampshire, New York, North Carolina, Oklahoma, South Carolina, Texas, Virginia and Washington. Its 2010 revenue was $622 million.
According to Humana, most Arcadian members reside in small or medium-sized communities across the U.S. The former’s 2010 revenue totaled nearly$33.9 billion.
Thomas J. Liston, Humana’s senior vice president of senior products, says the move offers the insurer an opportunity to expand its Medicare footprint and grow its Medicare enrollment.
Slated to close late this year, the transaction is subject to both federal and state regulatory approvals. It is not expected to materially impact Humana’s financial earnings guidance for the year ending December 31, 2011.