CAC-Florida Medical Centers, PrescribIT Rx Pharmacy
Management Company Included
LOUISVILLE, Ky., Dec. 14 /PRNewswire-FirstCall/ -- Humana Inc. (NYSE: HUM)
today announced that it has signed definitive agreements to acquire CarePlus
Health Plans of Florida as well as its 10 CAC-Florida Medical Centers, and
PrescribIT Rx pharmacy management company in Miami-Dade County. CarePlus
provides Medicare Advantage HMO plans and benefits to nearly 50,000 Medicare
eligibles in Miami-Dade, Broward and Palm Beach counties.
The transaction, which is subject to regulatory approval, is expected to
close within the next 90 days. Total consideration will be approximately
$408 million plus the amount of excess statutory surplus acquired with the
plan at the closing date. The transaction will be financed through a
combination of line-of-credit borrowings and cash on hand, with line-of-credit
borrowings providing approximately 75% of the funding.
Humana anticipates the acquisition to be immediately accretive to
earnings, adding earnings at an annual rate of approximately $0.15 to $0.18
per diluted share during the first year, including the impact of integration
costs incurred. Assuming an early first quarter closing of the transaction,
the company now expects full year 2005 diluted earnings per common share to be
in the range of $2.10 to $2.13.
"The acquisition of CarePlus is consistent with our strategy of seeking
opportunities to profitably grow our membership while adding valuable assets
to Humana's portfolio of health benefit plans," said Michael B. McCallister,
Humana president and CEO. "This acquisition will enhance Humana's
market-leading presence in the Medicare market in South Florida."
"CarePlus is a well-known Medicare Advantage plan in the South Florida
area," said R. Eugene Shields, Humana senior vice president for government and
senior products. "In addition, it has a strong and positive presence among the
area's Hispanic population, particularly in Miami-Dade County. With Humana's
experience and success as a long-time provider of Medicare benefits linked to
our industry-leading, consumer-focused capabilities for members and
physicians, we are confident this acquisition will bring measurable benefits
to CarePlus members and the doctors who take care of them."
Humana currently has more than 230,000 Medicare Advantage members
statewide. There are approximately 131,000 Humana Medicare Advantage members
in the South Florida area.
Michael A. Seltzer, CEO of Humana's Florida senior products, said there
should be no change in how current CarePlus Health Plan members access their
benefits. "We will not be making any changes to the CarePlus Medicare
Advantage benefits already filed and approved by the Centers for Medicare and
Medicaid Services for 2005," said Seltzer. "All current members who intend to
enroll in CarePlus plans for 2005 will not see a change in those benefits,
their provider networks, or how those benefits are delivered.
"The CAC Medical Centers have become the center of social interaction for
many seniors in South Florida," Seltzer added. "We believe these centers
represent a valuable community resource, playing an important role in
providing access to needed health care services and serving as a meeting place
for CarePlus members."
Seltzer also said Humana has no plans to make changes in the operation of
the 10 CAC Medical Centers and associated on-site pharmacies through 2005. An
estimated 19,000 CarePlus members receive care at those facilities.
"We will be assessing the operations at CarePlus Health Plans throughout
2005 to successfully incorporate best practices of both Humana and CarePlus
into an even better experience for plan members going forward," said Seltzer.
Banc of America Securities LLC acted as financial advisor to Humana Inc.
for this transaction.
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's
largest publicly traded health benefits companies, with approximately
7 million medical members located primarily in 15 states and Puerto Rico.
Humana offers a diversified portfolio of health insurance products and related
services -- through traditional and consumer-choice plans -- to employer
groups, government-sponsored plans, and individuals.
Over its 43-year history, Humana has consistently seized opportunities to
meet changing customer needs. Today, the company is a leader in consumer
engagement, providing guidance that leads to lower costs and a better health
plan experience throughout its diversified customer portfolio.
More information regarding Humana is available to investors via the Investor
Relations page of the company's web site at http://www.humana.com, including
copies of:
-- Annual report to stockholders;
-- Securities and Exchange Commission filings;
-- Most recent investor conference presentation;
-- Quarterly earnings press releases (including detailed description of
unusual items, where applicable);
-- Audio archive of most recent earnings release conference call;
-- Calendar of events (includes upcoming earnings conference call dates,
times, and access number, as well as planned interaction with
institutional investors);
-- Corporate Governance Information.
SOURCE Humana Inc.
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Related links:
http://www.humana.com
Company News On-Call:
http://www.prnewswire.com/comp/423125.html
CONTACT:
Regina Nethery, Humana Investor Relations,
+1-502-580-3644, or rnethery@humana.com, or Tom Noland, Humana
Corporate Communications, +1-502-580-3674, tnoland@humana.com
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