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Humana (HUM) to Buy Remaining iCare Shares to Expand Medicare

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Humana Inc. (HUM - Free Report) recently announced that it will purchase the remaining 50% of iCare, which is a Wisconsin-based healthcare company.

The health insurance giant, which already owns the other half of iCare will buy the residual share from Centers for Independence, Inc. (CFI). Notably, this joint venture dates back to 1994, catering to members in the Wisconsin region via Medicaid and Medicare plans.

However, financial terms of the deal were kept under wraps. The buyout is also subject to certain closing conditions.

iCare serves 44,000 members through Wisconsin’s Medicaid SSI program, BadgerCare program and Medicare D-SNP plans for individuals eligible for both Medicare and Medicaid.

Humana will be able to strengthen its Medicaid business with this transaction. It remains committed to providing quality medical care across Medicare, Medicaid and Commercial product lines in Wisconsin.

With this deal, the company will now be able to provide Medicare D-SNP plans in the state. This buyout will increase Humana’s overall Medicaid membership to more than 730,000 across four states, namely Florida, Illinois, Kentucky and Wisconsin.

As of Sep 30, 2020, Medicaid membership grew 55.7% year over year owing to the transition of the risk for the Kentucky contract from CareSource along with additional enorllment in Florida.

There is a host of initiatives that the company took recently, which helps carving its growth path. Some of the acquisitions made by the company aided it to achieve long-term growth. It also closed the Enclara deal in January, expanding its hospice pharmacy business line.

We expect these initiatives to bode well for the long haul.

Zacks Rank and Price Performance

Shares of this currently Zacks Rank #4 (Sell) company have gained 17% in a year compared with the industry’s growth of 13%.



You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other companies in the same space, such as Centene Corp. (CNC - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Anthem Inc. have also rallied 6.2%, 24.8% and 12.4%, respectively, in the same time frame.

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