Anthem to acquire InnovaCare Health's Puerto Rico-based MA, Medicaid business

Anthem headquarters
Anthem has announced plans to acquire Puerto Rico-based plans from InnovaCare Health. (Anthem)

Anthem has reached a deal with InnovaCare Health to acquire its subsidiaries in Puerto Rico.

This includes MMM Holdings and its Medicare Advantage plans, MMM Healthcare, which is the largest MA plan in the territory, Anthem said in an announcement. The acquisition also includes MMM's Medicaid plan.

The deal will add 267,000 Medicare Advantage members and 305,000 Medicaid members, Anthem said.

“We are pleased to expand Anthem’s commitment to serve Medicare and Medicaid-eligible individuals and consumers to Puerto Rico. We remain focused on providing services that drive greater value while giving members access to care and services that meet their diverse needs, enhance their experience, and help them lead healthier lives,” said Gail Boudreaux, CEO of Anthem, in a statement.

RELATED: Anthem's Medicare Advantage membership up 18% in 2020

MMM holds the only 4.5 star Medicare contract with the Centers for Medicare & Medicaid Services in Puerto Rico, according to the announcement. In addition, a focus at MMM has been vertical integration, where it operates a series of specialized clinics and physician groups.

The financial terms of the deal were not disclosed, and Anthem expects the acquisition to close by the second quarter of 2021. The insurer said it would maintain its earnings outlook for the year.

“This transaction aligns with Anthem’s vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve,” said Felicia Norwood, executive vice president and president of Anthem's government business division, in a statement. “Our approach to the whole-health needs of our members and a focus on addressing the social drivers of health will enable us to make a positive difference in the health of our communities.”