Cigna Closes On Acquisition Of Medicare Advantage Plans From Humana

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Cigna Corp. announced Wednesday it completed its purchase of Medicare Advantage plans from Arcadian and Humana in Arkansas, Oklahoma and Texas.

Starting Jan. 1, about 4,500 Medicare Advantage customers who had Humana or Arcadian now have Cigna coverage, which includes HealthSpring. The acquisition includes 35 new counties in and around Amarillo, Texas; Longview-Marshall, Texas; Texarkana, Texas; and Fort Smith, Ark.

The deal was announced in June. Terms of the agreement, including the price, were not disclosed.

The federal government required Humana to sell the Medicare Advantage plans as part of approval for buying Arcadian Management Services. Cigna will offer the new customers Medicare Advantage plans through its subsidiary HealthSpring, which the Bloomfield-based health insurer acquired in January for $3.8 billion.

Humana’s divestiture also opens up Arkansas and Oklahoma as a new market to HealthSpring for the first time. HealthSpring already has about 94,000 Medicare Advantage customers in Texas in 51 counties and it will add 10 more. Separately, the company has a Medicaid business in Texas.

A previous version of this blog post had June figures for HealthSpring’s Medicare Advantage in Texas. Enrollment has been replaced with the most up to date figures. A previous version also failed to mention that Oklahoma is a new market for HealthSpring’s Medicare Advantage plans.

About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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