UnitedHealth to acquire 63k-member Medicare Advantage plan

UnitedHealthcare, the insurance arm of UnitedHealth Group, will acquire Peoples Health, a Metairie, La.-based Medicare Advantage plan, for an undisclosed amount, according to The New Orleans Advocate.

Since providers launched Peoples Health in 1994, the health plan has grown from 3,200 members to 63,000. The health plan has about 850 employees and posted revenues of $710 million in fiscal year 2016.

The deal, which is subject to regulatory approval, is slated to reach completion as soon as possible. Should the deal close, UnitedHealthcare will take over as the second-largest Medicare Advantage provider in Louisiana, behind Humana.

"Joining with UnitedHealthcare preserves our foundation as a local company with deep ties to Louisiana while creating greater stability and enhancing what we offer to the people we serve," Peoples Health said in a statement to The New Orleans Advocate. "There's no better partner for us as we look to navigate a rapidly changing industry and grow into an even stronger health plan."

More articles on payer issues:
BCBS of IL: Apparent physician impersonator may have accessed members' PHI
48% of health insurers offering marketplace coverage manage Medicaid in same state
Payer-provider partnerships on the rise with 22 launched in 2018 so far

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers