US health insurance company Essence Healthcare has agreed to acquire its long-term investor Mutual of Omaha’s Medicare Advantage business as per the latest insurance acquisition news.

As part of the deal, Essence Healthcare is acquiring Mutual of Omaha Medicare Advantage Company (MOMAC) and Medicare Advantage Company of Omaha (MAICO). The two subsidiaries of Mutual of Omaha own Medicare Advantage businesses in the Cincinnati, Dallas, San Antonio, El Paso, and Denver markets.

The deal does not include the other senior health businesses of Mutual of Omaha, including its US-wide Medicare Supplement, senior dental and vision, and Medicare Part D plans.

Financial terms of the deal have not been disclosed by the parties.

Currently, MOMAC and MAICO’s Medicare Advantage plans are operated by care managed services operator. Lumeris, which is also a sister company of Essence Healthcare will continue to operate the two Medicare plans after the deal is closed to avoid any disruption for plan members or providers. The closing of the latest health insurance deal is expected to occur by mid-2020 based on receipt of the necessary regulatory approvals.

Richard Jones – CEO of Essence Healthcare said: “We have enjoyed our close working relationship with Mutual of Omaha. The acquisition of these plans will significantly accelerate our footprint in Medicare Advantage, and materially change our expansion plans. Accordingly, we will need to reorganize and restructure our business to accommodate this opportunity.”

  Essence Healthcare, Health insurance, Insurance acquisition news, Insurance industry news, Lumeris, Medicare Advantage, Medicare Advantage Company of Omaha, Mutual of Omaha, Mutual of Omaha Medicare Advantage Company, Richard Jones