WellPoint to Acquire CareMore Health Group for $800 Million

WellPoint, Inc. (NYSE: WLP) announced an agreement to acquire CareMore, a senior focused health care delivery program for $800 million reports the New York Times.

CareMore’s program provides Medicare Advantage plans and clinics designed to deliver proactive, integrated, individualized health care to approximately 54,000 members.

CareMore’s regional footprint is located in various California, Arizona and Nevada markets and provides disease management programs that provide Medicare recipients with care coordination and intensive treatment of chronic conditions.  The company also operates 26 care center clinics staffed with physicians, nurse practitioners, medical assistants, podiatrists, physical therapists, nutritionists, psychologists and case managers.


WellPoint said the acquisition is part of a strategic plan to capitalize on new opportunities for growth in the changing marketplace.

“The Medicare market is particularly significant for WellPoint’s growth strategy,” said Angela F. Braly, chair, president and chief executive officer of WellPoint. “We anticipate that more than one million Baby Boomers will age into Medicare every year between now and 2030 across our 14 Blue states.”

The acquisition is expected to close by end of 2011 and is subject to certain state regulatory approvals and standard closing conditions and customary approvals required under the Hart-Scott-Rodino Antitrust Improvements Act.


“In the last five years we have worked diligently to create and demonstrate the CareMore model can produce superior clinical and financial results in diverse markets,” said Alan Hoops, chairman and chief executive officer of CareMore. “We are excited about the opportunities to combine our capabilities with the market presence nationwide of WellPoint and expand the CareMore model within WellPoint’s markets.”