Humana acquiring HMO Arcadian to boost Medicare enrollment
Humana (NYSE: HUM) is acquiring health management organization Arcadian Management Services, as part of an effort to better market its Medicare-related offerings, reports the Wall Street Journal.
Buying Arcadia--an HMO that operates Medicare Advantage plans--allows Humana to expand its Medicare footprint and grow its Medicare enrollment, the Associated Press reports. Arcadian has about 64,000 members in 15 states and generated $622 million revenue last year.
The acquisition comes as federal and state budget cuts offer new opportunities for managed care companies like Humana to penetrate the Medicare and Medicaid markets, the WSJ notes.
The acquisition likely will be complete later this year, pending approval from federal and state regulators, the AP reports. Terms of the deal were not disclosed.
To learn more:
- read the Wall Street Journal article
- check out the AP story
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