NU Online News Service, Dec. 13, 2004, 9:44 a.m. EST

A Midwestern health insurer says it has completed a $300 million deal to acquire a pioneer in the account-based health plan market.[@@]

UnitedHealth Group Inc., Minnetonka, Minn., has brought the privately held Definity Health Corp., Minneapolis, into the fold just 2 weeks after the deal was announced.

Definity will have about 500,000 members in health plans at 100 large, self-insured employers starting Jan. 1, 2005. The plans combine health reimbursement arrangements, health savings accounts and other types of health accounts with high-deductible health coverage.

Definity estimates it will generate about $100 million in revenue in 2005.

UnitedHealth’s own Uniprise division will have 850,000 members in account-based plans.