Humana, Inc. has completed a $14 million acquisition of West Palm Beach, Fla.-based Metcare Health Plans, Inc., a wholly owned subsidiary of Metropolitan Health Networks.
MHP offers a Medicare Advantage health plan called AdvantageCare, which provides Medicare beneficiaries with access to comprehensive healthcare coverage in Florida.
Humana officials say the acquisition increases Humana's Medicare Advantage membership by approximately 7,300 members in the following 13 Florida counties: Charlotte, Collier, Glades, Lake, Lee, Manatee, Marion, Martin, Okeechobee, Polk, Sarasota, St. Lucie and Sumter.
Through its core Provider Service Network business Metcare of Florida, Inc., Metropolitan has entered into a provider-risk agreement with Humana in the 13 counties to provide care for AdvantageCare customers as well as future Humana customers in those counties. Additionally, Metropolitan has expanded its provider relationship with CarePlus - Humana's wholly owned Medicare Advantage health plan - to include the 13 counties.
The transaction is anticipated to increase Humana's 2008 premium revenues by approximately $27 million and is expected to have no effect on Humana's full-year 2008 earnings guidance of $4.30 to $4.40 per share.