HealthSpring, Inc. announced Friday that it will pay $545 million to purchase Bravo Health, Inc., a privately held operator of Medicare Advantage plans in Pennsylvania, the Mid-Atlantic region, and Texas, and Medicare Part D stand-alone prescription drug plans in 43 states.
The deal creates the largest company in the nation focused solely on the Medicare Advantage population, including the seventh-largest Medicare Advantage plan, and the ninth-largest stand-alone prescription drug plan.
Bravo Health's August 2010 plan payment reports reflected aggregate Medicare Advantage and PDP membership of over 100,000 and 290,000, respectively. For the first six months of 2010, Bravo Health generated premium revenue of approximately $832.8 million.
"I cannot think of a better way to demonstrate our commitment to Medicare Advantage and our confidence in the long-term future of the program than the transaction we are announcing today, said Herb Fritch, chairman/CEO of Nashville-based HealthSpring. "This acquisition will extend HealthSpring's reach into new geographies, including an immediate and sizable presence in the Philadelphia market. With diversified geography and increased membership scale, the combined companies will be even better positioned in the new environment created by health insurance reform."