HealthSmart Holdings Inc. is planning to expand its medical third-party administration (TPA) business by acquiring a medical TPA business from Wells Fargo Insurance Services USA Inc., a unit of Wells Fargo & Company.
HealthSmart, Dallas, has been handling about $4.2 billion in benefits claims per year with about 400 employees.
The Wells Fargo operations HealthSmart is acquiring are handling about $800 million in claims.
HealthSmart would assume leases for offices in Charleston, W.V.; Juneau, Alaska; Fayetteville, N.C.; and Newnan, Ga.
What Your Peers Are Reading
HealthSmart would be taking on about 600 Wells Fargo TPA employees.
HealthSmart and Wells Fargo are not saying how much HealthSmart is paying for the TPA unit, but HealthSmart says it hopes to complete the deal by the end of the year.
The combined TPA operation would have about $100 million in annual revenue, HealthSmart says.
Neal Aton, president of Wells Fargo Insurance Services, says his business would offer HealthSmart TPA services to Wells Fargo customers.
HealthSmart has offices in California, Colorado, Ohio and Texas. The Wells Fargo deal should help HealthSmart build volume in the East, according to HealthSmart Chairman Daniel Crowley.
The Benefit Advisors Network (BAN), Cleveland, has signed Peel & Holland Inc., Benton, Ky.
Peel & Holland is now one of 42 members of the BAN benefits firm group.
BAN offers independent benefits firms technology support, compliance services, specialty products, and other products and services.
METLIFE ADDS GLOBAL PROGRAM
A unit of MetLife Inc., New York (NYSE:MET), has introduced the International Business Travel Medical program.
The program will provide coverage for emergency and urgent medical care for employees traveling on short-term assignments outside their country of residence.
The program includes a direct settlement network that can reduce the risk that patients will end up having to pay for care out of pocket.