Anthem to Acquire America’s 1st Choice
INDIANAPOLIS --(BUSINESS WIRE)--Oct. 24, 2017-- Anthem, Inc. (NYSE:ANTM) today announced that the company has entered into an agreement to acquire America’s 1st Choice, a privately‐held for‐profit Medicare Advantage organization that offers HMO products, including Chronic Special Needs Plans (C-SNP) and Dual-Eligible Special Needs Plans under its Freedom Health and Optimum brands in Florida . The company also operates America’s 1st Choice of South Carolina .
“Over the last four years, Anthem has made a commitment to improve the performance and quality of our Medicare platform, ensuring we provide greater access to high-quality, affordable health care,” said Joseph R. Swedish, Chairman, President and Chief Executive Officer, Anthem. “As we look ahead, we will continue to maintain a diligent focus on innovating our Medicare Advantage product portfolio. The acquisition of America’s 1st Choice, which has strong technology tools and expertise designing and implementing engagement programs, fits well with our growth objective and will also enhance our ability to deliver a broad variety of cost-effective high quality plans to meet the diverse needs of the Medicare population.”
America’s 1st Choice has grown to become one of Florida’s preferred Medicare Advantage plans and a leading C-SNP in Florida . The company currently serves approximately 130,000 members through its Medicare Advantage plans in 25 Florida and three South Carolina counties. Its proprietary technology tools, managerial processes and member engagement programs help the company deliver efficient, cost-effective health care services to its members. Additionally, America’s 1st Choice provides clinical and administrative support that enables its broad network of providers to better manage care for members in a high quality and cost-effective manner. Its health plans were rated by The Centers for Medicare and Medicaid (CMS) as 5.0 and 4.0 in their Star Ratings for 2018.
“This acquisition further demonstrates our commitment to capitalize on new opportunities in our Government Business Division that help expand our presence and improve our capabilities to help serve the needs of the most vulnerable populations, which includes Medicare , dual eligible as well as those living with chronic conditions,” said Peter D. Haytaian , Executive Vice President, President, Government Business Division, Anthem.
Financial terms of the transaction were not disclosed. The acquisition is expected to close in the first quarter of 2018 and is subject to approvals from state and federal regulatory authorities, standard closing conditions and customary approvals required under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to be slightly accretive to earnings in 2018.
Anthem’s financial advisor is Centerview Partners LLC and its legal advisor is White & Case LLP . Moelis & Company served as financial advisor and Foley & Lardner LLP served as legal advisor to America’s 1st Choice and its investors.
Anthem management will be available to discuss this announcement during the company’s 3rd quarter conference call and webcast at 8:30 a.m. Eastern Daylight Time on October 25 th.
About Anthem, Inc.
Anthem is working to transform health care with trusted and caring solutions. Our health plan companies deliver quality products and services that give their members access to the care they need. With over 74 million people served by its affiliated companies, including more than 40 million within its family of health plans, Anthem is one of the nation’s leading health benefits companies. For more information about Anthem’s family of companies, please visit www.antheminc.com/companies.
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Source: Anthem, Inc.
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