Humana can move forward with its plans to buy Arcadian Management Services if it divests certain part of Arcadian's Medicare Advantage business in five states, the Department of Justice (DOJ) said Tuesday.
Under a proposed settlement agreement, the DOJ is requiring Humana divest Arcadian's assets in 5 states--Arizona, Arkansas, Louisiana, Oklahoma and Texas--where the combined companies would have controlled between 40 percent and 100 percent of the Medicare Advantage market, reported Fox Business.
The acquisition, which Humana announced last August, likely would have led to higher prices, fewer choices and lower quality Medicare Advantage plans in those five states, Legal Newsline reported.
The DOJ's Antitrust Division filed a civil lawsuit to block the acquisition, while also filing a proposed settlement to resolve the lawsuit. Humana has agreed to the settlement terms, but a federal judge still must approve the agreement.
Although neither Humana nor Arcadian disclosed financial terms when they announced the deal, the DOJ said in court papers that the transaction was valued at $150 million, according to Bloomberg.
To learn more:
- read the DOJ complaint, settlement and other filings
- read the Bloomberg article
- see the Legal Newsline article
- check out the Fox Business article