NU Online News Service, Dec. 13, 2004, 6:01 p.m. EST

A Cypress, Calif., managed care company has completed a previously announced acquisition of a Green Bay, Wis., health insurer.[@@]

PacifiCare Health Systems Inc. has acquired American Medical Security Group Inc. for $505 million in cash.

PacifiCare is using a new $825 million credit facility to finance the deal.

The American Medical deal will help PacifiCare reduce its dependence on the California management care market and the Medicare managed care program, according to PacifiCare executives.

American Medical sells individual and small group health insurance through a network of 32,000 independent agents in 33 states and the District of Columbia. The company generated $712 million in premium revenue in 2003 by providing commercial preferred provider organization coverage for 314,000 people.