A state regulator has approved Humana Health Plans Inc.’s purchase of CHA HMO Inc.

Glenn Jennings, executive director of Kentucky’s Office of Insurance, said the deal “will have a positive impact on Kentucky’s health insurance market.”

Under the acquisition agreement, Humana will pay $55 million for control of CHA, Lexington, Ky. The University of Kentucky holds over 80% of CHA shares, with other hospitals owning minority shares.