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news.Humana has signed a definitive agreement to purchase OSF HealthPlans, a Peoria, Illinois-based managed care company, for cash consideration of $90.5 million, which includes $25 million of excess cash.
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The purchase of OSF HealthPlans, a subsidiary of OSF Saint Francis, is expected to increase Humana’s fully insured commercial membership by approximately 34,000, its self-insured business by approximately 30,000 members and its Medicare membership by almost 14,000 members, while providing residents of the surrounding 31 central and northern Illinois counties with access to innovative new insurance products and services.
The transaction is subject to regulatory approvals from the Illinois Division of Insurance and the Centers for Medicare and Medicaid Services. The transaction is not anticipated to have any effect upon Humana’s full-year 2008 earnings guidance of $4 to $4.25 in diluted earnings per common share.
Michael Kasper, president of Humana’s Illinois market, said: “The transaction significantly expands Humana’s provider network in central and northern Illinois, allowing Humana members access to the region’s premier provider network on a competitive basis.”