MM Curator summary
Anthem will pick up more than 500,000 lives with the purchase.
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Anthem said it is buying Medicaid and Medicare Advantage health plans in Puerto Rico for an undisclosed sum from InnovaCare Health.
The deal to buy InnovaCare’s MMM Holdings subsidiaries will bring Anthem more than 267,000 new Medicare Advantage health plan members and more than 305,000 new Medicaid enrollees. Anthem said MMM is the “ninth-largest MA plan in the country and second-largest Medicaid plan on the island of Puerto Rico.”
The addition of the Puerto Rico operations comes as Anthem continues to bolster its government health insurance businesses, which have been a big growth driver for the company. Anthem operates Blue Cross and Blue Shield health plans in 14 states.
Medicare Advantage, in particular, has been a target for Anthem and health insurer rivals as more seniors flock to such coverage. Medicare Advantage growth also comes amid unprecedented competition given a record number of health plans are participating in a program that offers seniors the same benefits as traditional Medicare plus extras like preventative care and outpatient healthcare services.
Health insurers have been selling perhaps their richest benefit packages for Medicare Advantage, thanks to new rules that allow Medicare Advantage plans to offer more benefits to seniors. Medicare Advantage plans contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs.
“We are pleased to expand Anthem’s commitment to serve Medicare and Medicaid-eligible individuals and consumers to Puerto Rico,” Anthem president and chief executive Gail Boudreaux said. “We remain focused on providing services that drive greater value while giving members access to care and services that meet their diverse needs, enhance their experience, and help them lead healthier lives.”
Anthem said the acquisition is expected to close by the second quarter of 2021.
