Elevance to acquire Indiana University Health Plans
After the acquisition closes, IU Health Plans will operate as part of Anthem Blue Cross and Blue Shield in Indiana.
Photo: Matt Mawson/Getty Images
Elevance Health has entered into an agreement to acquire Indiana University Health Plans, a managed care organization created by Indiana University Health.
After the acquisition closes, IU Health Plans will operate as part of Anthem Blue Cross and Blue Shield in Indiana.
The Medicare market president of Anthem Blue Cross and Blue Shield in Indiana said the move was designed to elevate quality and expand the company's product offerings, and aligns with its health equity goals, which include heightened access.
"Through this purchase, we are strengthening our efforts to cultivate healthier communities and improve health outcomes for those we are privileged to serve," said Dave Mull, Medicare market president of Anthem Blue Cross and Blue Shield in Indiana. "We look forward to maintaining our relationship with IU Health as an in-network provider of care."
WHAT'S THE IMPACT?
IU Health Plans is an established managed care plan that touts its local brand awareness, community involvement, customer service and product offerings. It has continued to earn high-quality scores in its operating region.
IU Health Plans offers 4.5 star Medicare Advantage plans in 36 counties with 19,000 members and Fully-Insured Commercial plans for employers with 12,000 members. IU Health Plans has more than 160 Indiana-based team members.
The acquisition is subject to customary closing conditions and is expected to close at the end of 2024.
THE LARGER TREND
This isn't the only acquisition Elevance Health has set its sights on in recent months. In January the outfit entered into an agreement to acquire Paragon Healthcare, a company specializing in infusible and injectable therapies.
Paragon, which has been operating for more than 20 years, provides infusion services to patients through its omnichannel model of ambulatory infusion centers, home infusion pharmacies, and other specialty pharmacy services. The company, headquartered in Plano, Texas, provides care to patients with a broad range of chronic and acute conditions.
The transaction amount was not disclosed.
In June, Elevance became the second health insurer to win a case against the federal government over Medicare Advantage payments. On June 7, United States District Court Judge Randolph Moss for the District of Columbia, Elevance's motion for summary judgment and denied the Department of Health and Human Services' cross-motion for summary judgment.听
What that means is that the 2024 Medicare Star Ratings for Blue Cross Blue Shield of Georgia are set aside and the Centers for Medicare and Medicaid Services is ordered to redetermine those ratings in a manner consistent with the ruling. The plan is expected to get a boost in 2024 star ratings, from 3 stars to 3.5 stars.
The company's profits in the second quarter were 24% higher than in Q2 2023, as the health insurer logged $2.3 billion in profit and $43.9 billion in revenue 鈥� the latter an improvement, but just 1% higher than the second quarter of last year.
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