Two national managed-care companies said last week they would swap divisions of their HMOs to focus on their geographic market strengths.
Principal Health Care has reached a preliminary agreement with Cigna HealthCare to exchange the assets and operations of Cigna's 25,000-enrollee Wichita, Kan., HMO for the assets and operations of Principal's 27,000-enrollee HMO in Ohio.
The terms and expected date of the final transaction weren't disclosed by the companies.
Principal, the Kansas City-area-based division of the Principal Financial Group, already has 72,000 enrollees in an HMO and a PPO in Wichita and Kansas City. Meanwhile, Cigna, a division of Cigna Corp., operates HMOs in the Ohio cities of Cincinnati, Cleveland, Columbus and Dayton.