Humana to acquire Medicare Advantage HMO

Humana, Louisville, Ky., has signed an agreement to acquire Arcadian Management Services, a Medicare Advantage HMO based in Oakland, Calif.

Terms of the deal were not disclosed.

Arcadian, which does business as Arcadian Health and offers products under various other names, has approximately 64,000 members in small and medium-size communities in 15 states: Arizona, Arkansas, California, Georgia, Louisiana, Maine, Missouri, New Hampshire, New York, North Carolina, Oklahoma, South Carolina, Texas, Virginia and Washington, according to a Humana news release. Arcadian’s 2010 revenue was $622 million, the release said.

“Arcadia offers Humana an opportunity to expand our Medicare footprint and grow our Medicare enrollment,” Thomas Liston, senior vice president of senior products, said in the release.

Humana has about 1.9 million Medicare Advantage members in individual and group plans, according to its earnings report for the quarter ended June 30, accounting for about $5.3 billion, or 57%, of the company’s $9.3 billion in revenue for the quarter.