Humana to acquire care company OSF HealthPlans

Source: Healthcare Exec

Date :20/03/2008 05:02:58

Humana Inc. said on Thursday it is to acquire OSF HealthPlans, the Peoria, Illinois-based managed care company, for $90.5 million.

The Louisville-based provider of managed health care services said its acquisition of OSF HealthPlans, a subsidiary of OSF Saint Francis Inc, is expected to increase its fully insured commercial membership by about 34,000, its self-insured business by about 30,000 members and its Medicare membership by almost 14,000 members.

The deal, which is subject to regulatory approvals from the Illinois Division of Insurance and the Centers for Medicare and Medicaid Services, is not expected to affect Humana's full-year 2008 earnings outlook of $4.00 to $4.25 per share.

“Not only will OSF HealthPlans’ members gain access to a broader array of innovative, affordable health and specialty products and industry-leading consumer tools, the transaction significantly expands Humana's provider network in central and northern Illinois,” said Michael Kasper, president of Humana’s Illinois market.

Share repurchase

Separately, the company said that as of March 19 it had repurchased about 1.5 million of its outstanding shares at an average price of $45.18 a share.

The board authorized the use of up to $150 million for a share repurchase program on February 22.

March 20, 2008