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June 29, 2012 at 08:33 AM
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.
