Humana, Inc. has completed the purchase of PHP Companies, Inc. - operating under the name Cariten Healthcare - from Knoxville, Tenn.-based Covenant Health.
Cariten is a health benefits company serving commercial, Medicare and Medicaid members throughout the eastern Tennessee. As of September 30, Cariten's medical membership included 46,900 Medicare Advantage members, 51,400 commercial fully insured members, 22,100 commercial administrative-services-only (ASO) members and 93,300 Medicaid ASO members.
The Medicaid business relates to a TennCare program contract which expires on December 31 and will not be renewed.
The transaction has received regulatory approval from the Tennessee Department of Commerce and Insurance, the Centers for Medicare and Medicaid Services, the United States Department of Justice and the Federal Trade Commission.
The acquisition is not expected to affect Humana's diluted earnings per common share for the year ending Dec. 31, 2008 and is included in the company's estimate of EPS estimate for the year ending Dec. 31, 2009 of $5.90 to $6.10.