Humana Health Insurance Inc. recently announced that they have signed an agreement to acquire Arcadian Management Services which is a Medicare Advantage HMO based out of Oakland, California according to Enhanced Online News.  The Medicare Advantage HMO has about 64,000 members in 15 states throughout the nation.  Terms have yet to be disclosed.

Thomas J. Litson, senior vice president of senior products for Humana, says this acquisition offers Human an opportunity to expand their Medicare business and grow enrollment.  Humana has a long history in Medicare as well as years of working with beneficiaries to truly understand their Medicare needs.  Humana has a lot to offer Arcadian members and they plan on working together to achieve lifetime goals.

This acquisition came as a surprise to many members, but overall it should be a good thing.  Arcadian’s 2010 revenue stood at about $622 million.  The merger is still subject to both federal and state regulatory approvals and should close towards the end of 2011.  Experts are not expecting this acquisition to impact financial earnings guidance for the year ending December 31, 2011.  You can review more information on Humana’s Investor Relations page at www.humana.com.

Written by Sam Tabes

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