Cigna (CI) has signed an agreement to purchase selected Medicare Advantage plans in Texas and Arkansas from health insurer Humana.

The acquisition of three Humana’s markets including Amarillo, Longview-Marshall and Texarkana will allow Cigna’s HealthSpring unit to expand in Texas and Arkansas.

The accord is part of a previously announced government-stipulated divestiture for Humana to complete its acquisition of Arcadian Health and is effective from 1 January 2013.

HealthSpring president Herb Fritch said: "I am confident that our new customers will appreciate our unique approach and plan options, cost savings and strong focus on prevention to help keep them active and healthy."

HealthSpring will expand its service to Arkansas seniors in Columbia, Hempstead, Howard, Lafayette, Little River, Miller, Nevada and Sevier counties.

In addition to providing coverage in forty nine counties, HealthSpring will now provide the coverage for additional 10 new counties from this agreement which include Armstrong, Bowie, Carson, Cass, Deaf Smith, Harrison, Oldham, Potter, Randall and Titus counties.