UHC Purchasing Care Improvement Plus (CIP)
Care Improvement Plus (CIP) Medicare Advantage Plan, along with its parent organization, XLHealth, will be purchased by UnitedHealthcare (UHC) in mid 2012.
CIP has announced that there will be no changes to its Medicare plans in 2012 and that they will continue to honor current CIP provider contracts. There will be no operational changes, at least for now, so continue to follow CIP’s requirements for authorizations as identified on their website: http://www.careimprovementplus.com/providers/ManualsGuides.aspx.
UNITEDHEALTHCARE TO ACQUIRE XLHEALTH
Acquisition broadens capabilities and reach of services for special needs Medicare beneficiaries
including those with chronic conditions and dual eligibles.
MINNETONKA, MN and BALTIMORE – Nov. 22, 2011 – UnitedHealthcare, a UnitedHealth Group
(NYSE:UNH) company, has agreed to acquire XLHealth Corp., a sponsor of Medicare Advantage health
plans with a primary focus on Medicare recipients with special needs, such as those with chronic illness,
and those also eligible for Medicaid (“dual eligibles”).
XLHealth’s expertise in improving care for Medicare beneficiaries with elevated health risks, which
includes its innovative and nationally recognized clinical model of care, will enhance UnitedHealthcare’s
already strong Medicare Advantage portfolio. This acquisition will allow UnitedHealthcare to better serve
chronically ill and dual eligible members. Ninety percent of Medicare beneficiaries have at least one
chronic condition and nearly half of all beneficiaries have three or more conditions. In addition, dual
eligible individuals represent a disproportionate share of Medicare beneficiaries with chronic diseases.
With this acquisition, UnitedHealthcare will seek to build on the XLHealth model of care to better serve
Medicare Advantage members in markets across the country.
The all cash transaction is subject to customary regulatory approvals. The acquisition is expected to close
during the first half of 2012, and is expected to be accretive to UnitedHealth Group earnings per share.
XLHealth currently serves approximately 113,000 Medicare Advantage members in Arkansas, Georgia,
Maryland, Missouri, South Carolina and Texas, and will expand its presence to Illinois, Indiana, Iowa,
New Mexico, New York and Wisconsin in 2012. In addition to chronic conditions special needs plans,
XLHealth also offers dual eligible special needs plans, and traditional Medicare Advantage plans. The
company estimates its 2012 revenues will exceed $2 billion.
“Combining XLHealth’s substantial capabilities and outstanding employees serving high-risk,
chronically-ill Medicare beneficiaries with UnitedHealthcare’s breadth in both Medicare and Medicaid
will significantly enhance our ability to serve older Americans,” said Gail Boudreaux, CEO of
UnitedHealthcare. “As more Americans enter Medicare with multiple chronic conditions, including many
who are also eligible for Medicaid, health plans that deliver effective complex care management can
make an enormous difference in the quality of care beneficiaries receive. We greatly admire the work of
the XLHealth team and look forward to leveraging XLHealth’s clinical management expertise to better
serve our membership.”
“We are excited to be joining forces with UnitedHealthcare and look forward to realizing the many
benefits of this merger,” said Frederick C. Dunlap, Chairman and Chief Executive Officer of XLHealth.
“UnitedHealthcare recognizes the value of the outstanding care management model that we have built and
offers XLHealth the opportunity to grow as part of the leading health and well-being enterprise in the
United States. Importantly, we share a common mission of service as we work to provide solutions that
improve quality and reduce health care costs. Together, we can expand our ability to serve our members
and physician partners, as well as provide growth opportunities for our employees as part of a larger
organization. We look forward to working with the UnitedHealthcare team to ensure a smooth
transition.”
About UnitedHealthcare
UnitedHealthcare is dedicated to helping people nationwide live healthier lives by simplifying the health
care experience, meeting consumer health and wellness needs, and sustaining trusted relationships with
care providers. The company offers the full spectrum of health benefit programs for individuals,
employers and Medicare and Medicaid beneficiaries, and contracts directly with more than 650,000
physicians and care professionals and 5,000 hospitals nationwide. UnitedHealthcare serves more than 38
million people and is one of the businesses of UnitedHealth Group (NYSE: UNH), a diversified Fortune
50 health and well-being company.
About XLHealth
XLHealth, based in Baltimore, is privately owned by management and affiliates of MatlinPatterson
Global Opportunities Partners III L.P. XLHealth is the owner and operator of Care Improvement
Plus (http://careimprovementplus.com), a Medicare Advantage health plan committed to
delivering quality health care benefits and serving the underserved. Focused on improving
patient outcomes and reducing health care spending, Care Improvement Plus provides
comprehensive Medicare coverage and a Part D prescription drug benefit, plus additional services such as dental and vision coverage, and care management support.