Humana has acquired Arcadian Management Services, which through its affiliates operates Medicare Advantage HMO plans.

Terms of the deal have not been revealed by the firms.

Humana and Arcadian have entered into a consent agreement with the US Department of Justice to resolve antitrust concerns, which will require divestiture of overlapping Medicare Advantage health plan business in eight areas within Arizona, Arkansas, Louisiana, Oklahoma and Texas.

Humana expects that the divestitures would be effective from 1 January 2013 while the acquisition will increase Humana’s health plan membership by nearly 50,000 Medicare HMO members.

Arcadian’s plans have 62,600 Medicare Advantage members in 15 US states including Alabama, Arkansas, Arizona, California, Georgia, Louisiana, Maine, Missouri, New Hampshire, New York, North Carolina, Oklahoma, South Carolina, Texas and Washington.

Both Humana and Arcadian are collaborating for seamless transition of the Medicare business.

Humana hopes that there will be no interruption in coverage and members will continue to see the same health care providers and receive the same benefits they currently avail for the 2012 benefit year.

Humana’s acquisition of Arcadian is not expected to materially impact its financial earnings for the fiscal ending 31 December 2012.