Elevance grows Medicare Advantage business with IU Health deal

Elevance Health has reached a deal to acquire IU Health Plans, the insurance unit of Indiana University Health, for an undisclosed sum.

The proposed deal announced by Elevance Health subsidiary Anthem Blue Cross Blue Shield on Tuesday is expected to close by the end of the year, according to a news release. IU Health Plan policies will be rebranded with the Anthem name.

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IU Health Plans, a unit of the Indianapolis-based nonprofit academic health system, has 31,000 members in the Hoosier State, 60% in Medicare Advantage and the remainder in fully insured employer health plans.

Elevance Health already had a 22% Medicare Advantage market share in Indiana with nearly 150,000 members, Scott Fidel, a managing director at the investment bank Stephens, wrote in a note to investors Wednesday.

IU Health declined to comment on the agreement's financial terms or the status of IU Health Plans' 160 employees, and Elevance Health did not respond to a request for comment.

Elevance Health announced two significant acquisitions this year while suspending another transaction.

The company made deals for Centers Plan for Healthy Living, a Medicaid managed care carrier tailored to people living in long-term care facilities, and Plano, Texas-based infusion provider Paragon Healthcare, but halted its bid to buy nonprofit Blue Cross and Blue Shield of Louisiana amid local opposition.

Elevance Health reported a 24% jump in net income to $2.3 billion on a small revenue increase as membership dropped 4.6% to 45.8 million, the company reported in July.