Cigna, Bloomfield, Conn., has come to an agreement with Humana to purchase select Medicare Advantage plans in Texas and Arkansas. The plans in the three markets – Amarillo, Longview-Marshall and Texarkana – are part of a previously announced government-stipulated divestiture for Humana to complete its acquisition of Arcadian Health.
Effective Jan. 1, 2013, the approximately 3,500 Humana or Arcadian members impacted by the divestiture will join more than one million customers who access HealthSpring’s physician engagement model that works collaboratively with doctors to provide access to high quality, coordinated care that is focused on prevention and total body wellness.
As a result of this agreement, HealthSpring expects to extend its service area for the first time to Arkansas seniors in Columbia, Hempstead, Howard, Lafayette, Little River, Miller, Nevada and Sevier counties. In Texas, HealthSpring currently offers coverage in 49 counties and will add 10 new counties from this agreement: Armstrong, Bowie, Carson, Cass, Deaf Smith, Harrison, Oldham, Potter, Randall and Titus counties. Membership in existing HealthSpring Texas counties, Gregg and Henderson, are also part of the agreement.
The transaction is expected to close at the end of 2012 following customary regulatory approval.
In other industry news:
American Equity Investment Life Holding Company, West Des Moines, Iowa, has made the following changes to its executive officers:
- John M. Matovina was named CEO and president. Matovina was previously CFO and treasurer and was serving as interim CEO and president. He has served on American Equity’s board of directors since 2000 and has also served as vice chairman since 2003.
- Ted M. Johnson was named CFO and treasurer. Johnson was previously vice president – controller. Prior to joining American Equity in August 2000, he was a senior manager with Ernst & Young LLP working primarily on audit clients in the insurance industry.
Jefferson National, Louisville, Ky, has added a variable annuity offering the Hatteras Alpha Hedged Strategies Variable Fund from Hatteras Funds. The Hatteras Alpha Hedged Strategies Variable Fund provides access to multiple hedge fund managers and multiple hedge fund strategies in a single investment vehicle.
Cogent Research notes that 70% of RIAs surveyed cited the market’s ongoing volatility as a top concern for their clients, while 45% of RIAs said managing risk is now their top concern in terms of portfolio construction. A recent report from Cerulli notes that nearly 90% of advisors cite interest in alternatives, primarily to optimize the risk-adjusted performance for their clients.
In a survey conducted by Jefferson National, 68% of advisors have increased their use of alternative investments, 67% of advisors see their allocation to alternative investments continuing to increase over the next five years, and 61% also believe that alternatives will become even more important than traditional investments in the future.
Eileen C. McDonnell, president and CEO of The Penn Mutual Life Insurance Company, Horsham, Pa., was presented with The American College Foundation’s President’s Award for her enduring commitment to The College.
McDonnell served as the State Farm Chair in Women and Financial Services at The American College from 2007-2008. She was a member of the College’s Master of Science in Management faculty. McDonnell helped launch an annual lecture series named for Penn Mutual veteran and industry legend Maury Stewart, CLU. McDonnell has been a member of the organization’s board of directors.
More recently, McDonnell’s leadership prompted Penn Mutual’s $2.5 million gift to The American College for the creation of The Penn Mutual Center for Veterans Affairs, a scholarship program that offers retired military an opportunity to pursue financial services designations or a graduate degree in preparation for employment in the industry.
For the seventh time, Unum, Chattanooga, Tenn., has received national recognition for its ongoing commitment to the health of its U.S. employees and their families.
Unum was among 66 U.S. employers that received the 2012 Best Employers for Healthy Lifestyles award today from the National Business Group on Health in Washington, D.C. Unum achieved the highest level of recognition – a platinum award – for its efforts.
“One of our top priorities is to enable and encourage employees to maintain and improve their health,” said Mike Booth, Unum’s manager of Health Promotion and Wellness Programs. “Our commitment to the health and well-being of our employees helps keep our workforce productive and helps us manage overall health care costs. We’re pleased that the value of that commitment is recognized.”
The WellPoint Foundation, Indianapolis, Ind., has won a Gold Stevie Award in recognition of its work to improve health and strengthen communities. The WellPoint Foundation was named a winner in the “Corporate Social Responsibility Program of the Year – More Than 2,500 Employees” category for its efforts throughout 2011.
Major grants provided by the WellPoint Foundation in 2011 include:
- Boys & Girls Clubs of America – Triple Play: A three-year, $5 million grant to address the growing threat of childhood obesity by supporting and expanding the nonprofit’s Triple Play wellness program;
- OASIS Institute – CATCH Healthy Habits: A two-year, $2.7 million grant to expand an intergenerational wellness program to 18 locations in 14 states;
- March of Dimes: A $1 million grant to support group-based prenatal care for at-risk mothers, a preterm birth toolkit and a public awareness campaign;
- American Cancer Society – Patient Navigator Program: A two-year, $1.5 million grant to help newly-diagnosed patients, families and caregivers navigate the many systems encountered during the cancer journey; and
- AmeriCares and the American Red Cross: Contributions to tsunami relief efforts in Japan through AmeriCares, and tornado relief in Georgia, Missouri and Virginia through the American Red Cross.