Humana completes acquisition of Arcadian Management Services

Humana Inc. completed its previously announced acquisition of Arcadian Management Services, an Oakland, Calif.-based company that, through its affiliates, operates Medicare Advantage HMO plans.

Terms of the deal were not disclosed.

Arcadian’s plans have about 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 entered into a consent agreement with the U.S. 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 the divestitures would be effective Jan. 1, 2013.

Net of the divestitures, the acquisition will increase Humana’s health plan membership by about 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 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 Dec. 31, 2012.


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