Health insurer Humana has agreed to acquire MD Care, a California-based Medicare Advantage HMO, to expand its Medicare footprint in California.
MD Care, whose Medicare Advantage plan has about 15,000 members in Southern California, was founded in 2007 and offers Medicare beneficiaries a choice of plans with comprehensive and value-added alternatives to traditional Fee-for-Service Medicare. The company’s revenue was $155m in 2010.
Humana said the acquisition of MD Care is not expected to materially impact its 2011 financial earnings guidance.
The transaction is subject to both federal and state regulatory approvals and is expected to close in late 2011.
Humana senior vice president of senior products Thomas Liston said as Humana continues growing its Medicare business in the western US, MD Care offers an opportunity to expand their Medicare footprint and the suite of products and services they offer in California.
In August 2011, Humana agreed to acquire Arcadian Management Services, which also specializes in Medicare Advantage plans.
Terms of the acquisition were not disclosed.