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Humana must divest health plans in five states to acquire Arcadian Management Services

By  |  March 27, 2012

In its proposed settlement, the Department of Justice will require divestitures for Humana to acquire Arcadian Management Services. Health plans in five states–Arizona, Arkansas, Louisiana, Oklahoma, and Texas–under Arcadian’s Medicare Advantage business are to be divested. The settlement will resolve the DOJ’s concerns that the acquisition will lead to higher prices, fewer choices, and lower quality Medicare Advantage plans. Without the divestiture, the merged entity would control between 40 and 100 percent of the Medicare Advantage insurance market in the counties and parishes of the five identified states.

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    Full content: DOJ Press Release

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    Related content: Observations on the Commission’s Evanston Remedy: When Is Divestiture, or Any Remedy, Not Appropriate for a Consummated Anticompetitive Merger? (Mark Botti, Akin Gump)