Business
Humana buys Tennessee health plan
NEWS IN BRIEF — Posted Aug. 25, 2008
Humana has agreed to pay $245 million to buy the health plan Cariten Healthcare from its parent company, Covenant Health.
The Knoxville, Tenn.-based insurer has about 64,000 commercial members, 46,000 in Medicare Advantage plans and 99,000 members enrolled in TennCare, Tennessee's Medicaid plan.
The Medicaid members are only part of Cariten's membership until Dec. 31, however, because Cariten declined to bid on a new TennCare contract that would have required the company to assume risk rather than simply administer claims.
The acquisition requires approval from state and federal agencies.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/08/25/bibf0825.htm.
Copyright © 2008 American Medical Association. All rights reserved.
