PacifiCare Health Systems Inc., Cypress, Calif., is jumping into the national health insurance market.[@@]
The West Coast managed care company has agreed to pay $502 million in cash for American Medical Security Group Inc., Green Bay, Wis.
American Medical has been one of the most visible players in the national individual and small group health insurance markets. The company, which reported $712 million in premium revenue in 2003, has 314,000 commercial preferred provider plan members and a network of 32,000 independent agents in 33 states that have what it sees as having favorable regulatory climates.
Completing the American Medical deal would increase PacifiCare’s membership about 13%.