WellPoint to acquire CareMore for $800 million
In a move to boost its profile in the senior care industry, insurance behemoth WellPoint Inc. is acquiring the California healthcare provider CareMore Health Group in an $800 million deal.
Indianapolis-based WellPoint is the largest health insurer in the United States, serving mostly Medicare beneficiaries. CareMore, meanwhile, operates 26 clinics, serving 54,000 Medicare recipients in California, Nevada and Arizona, according to published reports.
WellPoint spokeswoman Kristin Binns told the Los Angeles Times that the company sees significant growth opportunities in the senior market. It expects that every year until 2030, one million baby boomers will become eligible for Medicare in its 14-state coverage area. Binns said WellPoint is looking to open more clinics aimed at seniors in efforts to high healthcare utilization rates.
Analysts expect the deal to be completed by the end of the year.