Humana said it plans to acquire PHP Cos., known as Cariten Healthcare, from Covenant Health for about $245 million in cash. Cariten will add about 110,000 commercial and Medicare members in eastern Tennessee, including 46,000 Medicare Advantage members and 34,000 commercial members.
Based in Knoxville, Tenn., Cariten has a contract with TennCare, the states Medicaid managed-care program, that wont be renewed at the end of the year, according to a written statement from Humana.
Humanas national presence, local management and broad product array combined with Caritens local market presence and knowledgeable associates will result in stronger benefit offerings for East Tennessee consumers and employers, Evans Looney, Humana of Tennessee president, said in a written statement. Humana is based in Louisville, Ky., and has about 11.5 million members.
The deal is subject to approval from the CMS and other federal regulators as well as the Tennessee Department of Commerce and Insurance, and is expected to close by year-end. -- by Rebecca Vesely