Aetna will pay $535 million to acquire Schaller Anderson, a privately held manager of Medicaid and self-funded health plans, the companies announced.
This acquisition provides Aetna with a premier provider of medical management services with more than 20 years of experience working with the Medicaid population, Aetna Chairman and Chief Executive Officer Ronald Williams said in a statement.
Schaller Anderson, based in Phoenix, and its affiliates administer Medicaid plans in Arizona, California, Delaware, Maine, Maryland, Missouri, Texas, and, beginning July 1, New Hampshire. The company also has a consulting contract with the Medicaid program in Tennessee.
Its self-funded clients include Catholic Healthcare West, a 42-hospital system based in San Francisco.
The deal is subject to regulatory approval but is expected to close this year with Schaller Andersons earnings credited to Aetna in 2008.
Aetna said it would base its combined Medicaid business in Phoenix. An Aetna spokeswoman said the company plans to retain Schaller Anderson's 1,800 employees. -- by Gregg Blesch