HealthSpring Inc. has agreed to pay about $50 million in cash for America’s Health Choice Medical Plans Inc.
HealthSpring is a company that specializes in running Medicare managed care plans.
America’s Health Choice, Vero Beach, Fla., was founded in 2000 and now runs Medicare managed care plans with about 13,000 members in Florida’s Brevard, Broward, Indian River, Martin, Okeechobee, Palm Beach, and St. Lucie counties.
America’s Health Choice also owns 33 medical clinics, and HealthSpring has an option to buy the clinics by June 2007.
For now, America’s Health Choice will pay HealthSpring to manage the Florida Medicare managed care operations, and HealthSpring will buy health care services from the clinics, according to HealthSpring.
The companies hope to complete the deal by the end of the year.
The federal government has been talking about the possibility of imposing administrative sanctions on America’s Health Choice, but it recently lifted marketing and enrollment restrictions that were imposed in July 2005, according to HealthSpring.