Humana to Expand Medicaid Services in Wisconsin with Acquisition of Inclusa, Inc.

Rhea-AI Summary

Humana Inc. (NYSE: HUM) announced its acquisition of Inclusa, Inc., a Managed Care Organization in Wisconsin, enhancing its long-term care service offerings. This acquisition is aimed at supporting approximately 16,600 older adults and adults with disabilities through Wisconsin's Family Care program. Inclusa has been connecting members with essential services for over 20 years and collaborates with over 6,000 service providers. The transaction, which is subject to regulatory approval, follows Humana's previous acquisition of iCare in 2020 and aims to increase its Medicaid membership, currently around 1 million across five states.

Positive

• Expansion of Humana's geographic presence and service offerings in Wisconsin.
• Acquisition supports 16,600 individuals, enhancing Humana's member-centered care approach.
• Increases potential Medicaid membership, building on Humana's existing 1 million Medicaid members.

Negative

• Financial terms of the acquisition were not disclosed, raising concerns about potential costs.
• Integration challenges may arise from merging Inclusa's operations with Humana.

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Humana Inc. (NYSE: HUM) announced today that it will acquire substantially all of the assets of Inclusa, Inc., a Managed Care Organization (“MCO”) in Wisconsin that provides long-term care services and supports to approximately 16,600 older adults and adults with disabilities through the state’s Family Care program. For more than 20 years, Inclusa has partnered with local healthcare providers and community resources to connect members with the support and services they need. Inclusa’s programs help eligible seniors and adults with disabilities to live independently in the communities they call home.

As an MCO, Inclusa works with over 6,000 service providers in approximately 40 service categories and is contracted with the State of Wisconsin and permitted through the Office of the Commissioner of Insurance to provide Family Care services and supports in 68 of Wisconsin’s 72 counties.

“For decades, Humana has been focused on improving the health and wellbeing of the people of Wisconsin and we are pleased to expand both our geographic presence and the scope of services we can offer through the acquisition of Inclusa,” said John Barger, Humana Medicaid President. “The long-term care services delivered by Inclusa and their contracted providers under Wisconsin’s Family Care program provide important assistance for eligible individuals that value their member-centered care model. We look forward to combining Inclusa’s and Humana’s expertise and capabilities to grow the Inclusa business and help even more people get the long-term care they need.”

“Since our founding in 2000, the mission of Inclusa has been to maximize health outcomes for our members by proactively partnering with others to build vibrant and inclusive communities in Wisconsin that offer people dignity, choice, and connections,” said Mark Hilliker, Inclusa Chief Executive Officer. “I am proud of the success we have achieved and look forward to the greater impact our team can have as part of Humana.”

The acquisition of Inclusa follows Humana’s 2020 acquisition of Wisconsin health care company iCare and will further increase the number of Medicaid recipients served by Humana, which currently totals approximately 1 million Medicaid members across five states – Florida, Illinois, Kentucky, South Carolina and Wisconsin. Humana was also recently awarded contracts in Ohio and Louisiana.

The closing of the transaction is subject to customary state regulatory filings as well as other customary closing conditions. Financial terms of the transaction were not disclosed.

About Humana

Humana Inc. is committed to helping our millions of medical and specialty members achieve their best health. Our successful history in care delivery and health plan administration is helping us create a new kind of integrated care with the power to improve health and well-being and lower costs. Our efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large.

To accomplish that, we support physicians and other health care professionals as they work to deliver the right care in the right place for their patients, our members. Our range of clinical capabilities, resources and tools – such as in-home care, behavioral health, pharmacy services, data analytics and wellness solutions – combine to produce a simplified experience with the goal of making health care easier to navigate and more effective.

More information regarding Humana is available to investors via the Investor Relations page of the company’s website at humana.com, including copies of:

• Annual reports to stockholders
• Securities and Exchange Commission filings
• Most recent investor conference presentations
• Quarterly earnings news releases and conference calls
• Calendar of events
• Corporate Governance information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220812005046/en/

Investors:

Lisa Stoner - Humana Investor Relations; (502) 580-2652;

lstamper@humana.com

Media:

Mark Taylor - Humana Corporate Communications; (317) 753-0345;

MTaylor108@humana.com

Source: Humana Inc.

FAQ

What is the significance of Humana's acquisition of Inclusa?

The acquisition allows Humana to expand its long-term care services and enhance support for 16,600 individuals in Wisconsin.

How will the acquisition impact Humana's Medicaid membership?

Humana aims to increase its Medicaid membership, currently at approximately 1 million, by integrating Inclusa's operations.

What is Inclusa's role in the healthcare sector?

Inclusa is a Managed Care Organization providing long-term care services and supports under Wisconsin's Family Care program.

What are the next steps after the acquisition announcement?

The transaction is subject to regulatory approvals and customary closing conditions before proceeding.

How long has Inclusa been operating?

Inclusa has been serving the Wisconsin community for over 20 years, partnering with local healthcare providers.