A large managed care company has scooped up a company that sells employee-paid insurance products through the worksite.
Humana Inc., Louisville, Ky., has paid about $188 million in cash for KMG America Corp., Minnetonka, Minn., the parent of Kanawha Insurance Company.
The price includes the assumption of about $50 million in debt, Humana says. Humana paid $15 million of the debt at closing.
KMG sells group and voluntary insurance benefits, and by administering benefit plans for employers.
KMG also runs stand-alone stop-loss insurance plans for employer plans with a total of about 392,000 members, and it administers claims and provides medical management services for self-insured plans with about 126,000 members, Humana says.