WellPoint announced it agreed to buy CareMore Health Plan, a private-equity owned Medicare Advantage insurer with 54,000 members and 26 clinics in Arizona, California and Nevada.
WellPoint to buy Advantage plan CareMore Health
A company spokesman said Indianapolis-based WellPoint is not disclosing the price it agreed to pay for the Cerritos, Calif.-based insurer, although the New York Times earlier had reported it was about $800 million.
CareMore, owned by investment firm CCMP Capital Advisors, New York, could not be reached for comment. CCMP referred calls to an outside spokesman, who did not return a phone call by deadline.
The publicly traded Blues insurer said the acquisition of the senior wellness-focused CareMore would be a good fit. “The Medicare market is particularly significant for WellPoint's growth strategy,” Angela Braly, chairwoman, president and CEO of WellPoint, said in the release. “We anticipate that more than 1 million baby boomers will age into Medicare every year between now and 2030 across our 14 Blue states.”
The acquisition is expected to close by the year-end and is subject to regulatory and antitrust approvals and customary closing conditions.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.