UnitedHealthcare Completes XLHealth AcquisitionMINNETONKA, Minn. —
UnitedHealthcare, a UnitedHealth Group (NYSE:UNH) company, has completed its acquisition of XLHealth Corporation, (XLHealth) a sponsor of Medicare Advantage health plans with a primary focus on Medicare recipients with special needs, such as those with chronic illness and those eligible for Medicaid (“dual eligibles”). By building on XLHealth’s model of care, UnitedHealthcare can better serve chronically ill and dual eligible Medicare beneficiaries nationwide.
UnitedHealthcare and XLHealth signed an acquisition agreement in November 2011.
XLHealth serves Medicare Advantage members under the Care Improvement Plus brand in Arkansas, Georgia, Maryland, Missouri, South Carolina and Texas. In 2012, it began offering its Care Improvement Plus Medicare Advantage plan in Illinois, Indiana, Iowa, New Mexico, New York and Wisconsin. Nearly 90 percent of XLHealth’s membership is enrolled in Medicare Advantage Special Needs Plans. Including XLHealth’s 117,000 Medicare beneficiaries, UnitedHealthcare Medicare & Retirement serves approximately 2.5 million Medicare Advantage plan members nationally.
“XLHealth’s model of care will enable UnitedHealthcare to better serve chronically ill and dual-eligible Medicare beneficiaries across the country,” said Tom Paul, CEO of UnitedHealthcare Medicare & Retirement.
“We look forward to working with UnitedHealthcare to enhance the service we offer to our current members and bringing our proven approach to care to even more chronically ill and underserved Medicare beneficiaries,” said Fred Dunlap, CEO of XLHealth.
The acquisition is expected to add approximately $2 billion to UnitedHealth Group’s 2012 revenues and $0.05 to net earnings per share, after integration expenses and investments to expand XLHealth’s scale and provide its services to chronically ill beneficiaries currently served by UnitedHealthcare Medicare & Retirement. Including XLHealth, UnitedHealth Group projects net earnings of $4.60 to $4.80 per share in 2012.
UnitedHealthcare is dedicated to helping people nationwide live healthier lives by simplifying the health care experience, meeting consumer health and wellness needs, and sustaining trusted relationships with care providers. The company offers the full spectrum of health benefit programs for individuals, employers and Medicare and Medicaid beneficiaries, and contracts directly with more than 650,000 physicians and care professionals and 5,000 hospitals nationwide. UnitedHealthcare serves more than 38 million people and is one of the businesses of UnitedHealth Group (NYSE: UNH), a diversified Fortune 50 health and well-being company.
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This list of important factors is not intended to be exhaustive. A further list and description of some of these risks and uncertainties can be found in UnitedHealth Group's reports filed with the Securities and Exchange Commission from time to time, including the cautionary statements in our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Any or all forward-looking statements we make may turn out to be wrong. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements.