Humana Inc. announced Thursday that it has signed an agreement to acquire Arcadian Management Services, an Oakland, Calif.-based Medicare Advantage HMO with approximately 64,000 members in 15 states. Terms of the agreement were not disclosed.
Louisville, Ky.-based health insurer Humana Inc. said most of Arcadians members reside in small or medium-sized communities across the U.S. It had close to $33.9 billion in revenue in 2010.
Founded in 1996, Arcadian Health Plan provides Medicare Advantage coverage through its affiliates in 15 states: 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.
"Arcadian offers Humana an opportunity to expand our Medicare footprint and grow our Medicare enrollment," said Thomas J. Liston, senior vice president of senior products for Humana in a press release. "Humana's long history in Medicare and experience working with Medicare beneficiaries enable us to serve our Medicare members very well. We have a lot to offer Arcadian members and look forward to helping them achieve lifelong well-being."
The transaction is subject to both federal and state regulatory approvals and is expected to close in late 2011. Humana's acquisition of Arcadian is not expected to materially impact its financial earnings guidance for the year ending December 31, 2011.