WellPoint Inc. announced today that it entered into an agreement to acquire CareMore Health Group, a Medicare Advantage health plan that also operates 26 clinics in select markets in California, Arizona and Nevada.
Terms of the deal, which is expected close by the end of the year, were not disclosed.
For Wellpoint, the announcement comes as the company looks to bolster its position in the Medicare market as that segment is expected to grow significantly in the coming years as the Baby Boom generation hits retirement age.
"The Medicare market is particularly significant for WellPoint's growth strategy," said Angela F. Braly, chair, president and CEO of WellPoint. "We anticipate that more than one million Baby Boomers will age into Medicare every year between now and 2030 across our 14 Blue states."
The CareMore model, which currently serves roughly 54,000 members across the three states it operates, blends its Medicare Advantage health plan with an aggressive hands-on approach to care coordination and disease management at its company-owned clinics.
"In the last five years we have worked diligently to create and demonstrate the CareMore model can produce superior clinical and financial results in diverse markets," said Alan Hoops, chairman and CEO of CareMore.
According to a press release announcing the deal, CareMore' mission "is to improve the overall lives and wellbeing of seniors by providing innovative, focused health care approaches to the complex problems of aging, while protecting precious financial resources of seniors and the Medicare Program."
Its care center clinics are staffed with physicians, nurse practitioners, medical assistants, podiatrists, physical therapists, nutritionists, psychologists and case managers. WellPoint said it intends to expand the CareMore model both within existing CareMore markets and to WellPoint markets across the country.
"The acquisition of CareMore aligns with WellPoint's mission of improving the lives of the people we serve and the health of our communities by creating better health outcomes for the senior population through preventive care and screenings, and intensive care management of the frail and chronically ill. We look forward to bringing these leading capabilities to new markets and customers," Braly said.