Closing of the transaction will expand Essence’s Medicare Advantage business
Essence to acquire Mutual of Omaha’s Medicare Advantage business. (Credit: Pixabay/Capri23auto.)
Essence Healthcare, sister company of Lumeris, has reached an agreement in principle to acquire Mutual of Omaha Medicare Advantage Company (MOMAC) and Medicare Advantage Company of Omaha (MAICO). The Mutual of Omaha subsidiaries own Medicare Advantage businesses in the Cincinnati, San Antonio, Dallas, Denver and El Paso markets. MOMAC and MAICO’s Medicare Advantage plans are currently operated by Lumeris, and Lumeris will continue to operate the plans after the transaction is completed, avoiding any disruption for plan members or providers.
“We have enjoyed our close working relationship with Mutual of Omaha,” said Richard Jones, CEO of Essence Healthcare. “The acquisition of these plans will significantly accelerate our footprint in Medicare Advantage, and materially change our expansion plans. Accordingly, we will need to reorganize and restructure our business to accommodate this opportunity.”
The transaction is expected to close by mid-2020 after receiving required regulatory approvals. No deal terms were announced. Mutual of Omaha is a significant long-term investor in Essence Group Holdings. The transaction does not affect Mutual of Omaha’s other senior health businesses, including its nationwide Medicare Supplement, Medicare Part D, and senior dental and vision plans.
Source: Company Press Release