Anthem will acquire InnovaCare Health's Puerto-Rico based subsidiaries, including its Medicare Advantage and Medicaid plans.
Anthem, Inc. has entered into an agreement with InnovaCare Health to acquire several of its affiliates in Puerto Rico, the companies announced Tuesday morning.
InnovaCare, based in White Plains, New York, is a value-based health insurance company with an integrated portfolio of health plans, medical organizations, and clinical networks.
Related: Virtual Care Visits up 136 Times Among Anthem Medicare Advantage Members
According to the press release, the Indianapolis-based insurer will acquire InnovaCare's Puerto Rico-based subsidiaries MMM Holdings, LLC (“MMM”), its Medicare Advantage plan MMM Healthcare, LLC, and its affiliated companies and Medicaid plan.
MMM, Puerto Rico’s largest Medicare Advantage plan, is "one of the fastest-growing vertically integrated healthcare organizations in the United States," according to the press release, and serves more than 267,000 Medicare Advantage members and 305,000 Medicaid members in Puerto Rico.
“We are pleased to expand Anthem’s commitment to serve Medicare and Medicaid-eligible individuals and consumers to Puerto Rico,” Gail K. Boudreaux, Anthem president and CEO, said in the press release. “We remain focused on providing services that drive greater value while giving members access to care and services that meet their diverse needs, enhance their experience, and help them lead healthier lives.”
The transaction was announced about a week after Anthem released its Q4 2020 earnings report, where the company reported an operating income of $31.5 billion for the quarter. At the end of 2020, Anthem had nearly 43 million medical members, up 4.7% year-over-year.
Related: Thanks to Medicaid, Medicare Growth, Anthem Operating Revenue Hits $31.5B
MMM has a network of specialized clinics and independent physician associations, over a dozen offices across Puerto Rico, and holds the “only 4.5 Stars Medicare Advantage contract in Puerto Rico from the Centers of Medicare and Medicaid Services (CMS,)" according to the press release.
"This transaction aligns with Anthem’s vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve," Felicia Norwood, Anthem’s executive vice president and president of the government business division, said in a statement. "Our approach to the whole-health needs of our members and a focus on addressing the social drivers of health will enable us to make a positive difference in the health of our communities."
Melanie Blackman is a contributing editor for strategy, marketing, and human resources at HealthLeaders, an HCPro brand.