Move expands Insurer’s presence in Medicare and Medicaid with acquisition of vertically integrated health plan
Indianapolis – February 2, 2021 – Anthem, Inc. (NYSE:ANTM) today announced that the company has entered into an agreement with InnovaCare Health, L.P., to acquire its Puerto Rico-based subsidiaries, including MMM Holdings, LLC (“MMM”) and its Medicare Advantage (MA) plan MMM Healthcare, LLC as well as affiliated companies and Medicaid plan.
“As we continue to grow our government business, MMM will bring to Anthem a depth of experience and knowledge in serving Medicare and Medicaid-eligible individuals. Anthem is committed to providing services that drive value while giving consumers access to healthcare that meets their diverse needs, enhances their experience, and helps them lead healthier lives,” said Felicia Norwood, President Government Business Division at Anthem, Inc.
MMM is Puerto Rico’s largest MA plan and one of the fastest-growing vertically integrated healthcare organizations in the United States. With more than 267,000 MA members and over 305,000 Medicaid members, MMM represents the ninth-largest MA plan in the country and second-largest Medicaid plan on the island of Puerto Rico. MMM seeks to provide its members with a whole-health experience through its network of specialized clinics and wholly owned independent physician associations (IPAs) Castellana Physicians Services and PHM as well as independent IPAs; together the MMM network includes more than 10,000 healthcare providers and more than a dozen offices across Puerto Rico. MMM holds the only 4.5 Stars MA contract in Puerto Rico from the Centers for Medicare and Medicaid Services (CMS).
Anthem is acquiring MMM from InnovaCare Health, L.P. a leading integrated, value-based payor and provider service organization and a portfolio company of global growth equity investor Summit Partners. Financial terms of the transaction were not disclosed. The acquisition is expected to close by the second quarter of 2021 and is subject to approval by the commonwealth of Puerto Rico regulatory authorities, standard closing conditions and customary approvals required under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to be slightly accretive to earnings in 2021.
Anthem’s legal advisors are White & Case LLP and Faegre Drinker Biddle & Reath LLP. Credit Suisse is acting as lead financial advisor and J.P. Morgan Securities LLC is also acting as financial advisor for Innovacare. Kirkland & Ellis LLP and Epstein Becker & Green, P.C. are acting as legal advisors for Innovacare.
About Anthem, Inc.
Anthem is a leading health benefits company dedicated to improving lives and communities, and making healthcare simpler. Through its affiliated companies, Anthem serves more than 107 million people, including approximately 43 million within its family of health plans. We aim to be the most innovative, valuable and inclusive partner. For more information, please visit www.antheminc.com or follow @AnthemInc on Twitter.
About InnovaCare Health
Based in White Plains, N.Y., InnovaCare Health improves the lives of members and physicians through innovative solutions for value-based healthcare. Through an integrated portfolio of health plans, medical service organizations, clinical networks and more, the company manages more than 500,000 lives, including more than 150,000 dual-eligible beneficiaries. InnovaCare’s Medicare Advantage plans have received NCQA accreditation and 4.5-star quality ratings from the Centers for Medicare and Medicaid Services (CMS). For more information, please visit innovacarehealth.com or follow us on Facebook or LinkedIn.
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