WellPoint Completes Acquisition of CareMore Health Group
INDIANAPOLIS, Aug. 22, 2011 /PRNewswire/ — WellPoint, Inc. (NYSE: WLP) today announced the completion of its acquisition of CareMore Health Group. CareMore offers Medicare Advantage plans and Special Needs Plans designed for the chronically ill in select California, Nevada and Arizona markets. CareMore is distinguished by its unique service delivery model and Neighborhood Care Centers. The transaction was announced June 8 and has now been approved by regulators in each of CareMore’s markets.
“We are extremely pleased to finalize our agreement even sooner than anticipated,” said Angela F. Braly, chair, president and chief executive officer of WellPoint. “This means we can now focus on the most exciting part of the acquisition, which is expanding CareMore’s proven system of providing Medicare recipients with high-quality, personalized care that improves their lives and well-being.”
CareMore focuses on improving the health of its 54,000 Medicare members through a variety of means, including, most notably, 26 Neighborhood Care Centers staffed with physicians, nurse practitioners, medical assistants, podiatrists, physical therapists, nutritionists, psychologists and case managers. WellPoint is looking to expand CareMore’s model both within existing CareMore markets and to WellPoint markets across the country.
CareMore will remain headquartered in Cerritos, Calif., and becomes a wholly owned operating division of WellPoint.
“WellPoint’s faith in CareMore’s model really validates our work,” said Alan Hoops, who will remain as chief executive officer of CareMore. “We look forward to deploying programs like Healthy Start and our Neighborhood Care Centers to benefit more seniors as part of this larger organization.”
The transaction is expected to be neutral to WellPoint’s earnings in year one, as the company invests in the expansion of CareMore’s capabilities to more members, and accretive in years two and beyond.
About WellPoint, Inc.
WellPoint works to simplify the connection between Health, Care and Value. We help to improve the health of our members and our communities, and provide greater value to our customers and shareholders. WellPoint is the nation’s largest health benefits company in terms of medical membership, with 34 million members in its affiliated health plans, and a total of more than 69 million individuals served through its subsidiaries. As an independent licensee of the Blue Cross and Blue Shield Association, WellPoint serves members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as the Blue Cross Blue Shield licensee in 10 New York City metropolitan and surrounding counties and as the Blue Cross or Blue Cross Blue Shield licensee in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), and Wisconsin. In a majority of these service areas, WellPoint’s plans do business as Anthem Blue Cross, Anthem Blue Cross and Blue Shield, Blue Cross and Blue Shield of Georgia, Empire Blue Cross Blue Shield, or Empire Blue Cross (in the New York service areas). WellPoint also serves customers throughout the country as UniCare. Additional information about WellPoint is available at www.wellpoint.com.
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WellPoint and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”), including statements in this press release, in presentations, in filings with the Securities and Exchange Commission, or SEC, in reports to shareholders and in meetings with analysts and investors. The projections referenced in this press release are forward-looking and they are intended to be covered by the safe harbor for “forward-looking statements” provided by PSLRA. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)”, “intend”, “estimate”, “project” and similar expressions are intended to identify forward-looking statements, which generally are not historical in nature. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: those discussed and identified in our public filings with the SEC; increased government participation in, or regulation or taxation of health benefits and managed care operations, including, but not limited to, the impact of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010; trends in health care costs and utilization rates; our ability to secure sufficient premium rates including regulatory approval for and implementation of such rates; our ability to contract with providers consistent with past practice; competitor pricing below market trends of increasing costs; reduced enrollment, as well as a negative change in our health care product mix; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon and funding risks with respect to revenue received from participation therein; a downgrade in our financial strength ratings; litigation and investigations targeted at health benefits companies and our ability to resolve litigation and investigations within estimates; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; non-compliance with the Express Scripts, Inc. pharmacy benefit management services agreement, which could result in financial penalties and our inability to meet customer demands; events that result in negative publicity for us or the health benefits industry; failure to effectively maintain and modernize our information systems and ebusiness organization and to maintain good relationships with third party vendors for information system resources; events that may negatively affect our license with the Blue Cross and Blue Shield Association; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; intense competition to attract and retain employees; unauthorized disclosure of member sensitive or confidential information; changes in the economic and market conditions, as well as regulations that may negatively affect our investment portfolios and liquidity; possible restrictions in the payment of dividends by our subsidiaries and increases in required minimum levels of capital and the potential negative effect from our substantial amount of outstanding indebtedness; general risks associated with mergers and acquisitions; various laws and our governing documents may prevent or discourage takeovers and business combinations; future public health epidemics and catastrophes; and general economic downturns. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Except to the extent otherwise required by federal securities law, we do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures in our SEC reports.
SOURCE WellPoint, Inc.
CONTACT: Investor Relations: Michael Kleinman, Investor Relations, +1-317-488-6713, Michael.Kleinman@wellpoint.com, Media: Kristin Binns, Corporate Communications, +1-917-697-7802, Kristin.Binns@anthem.com, or Doug Bennett Jr., Corporate Communications, +1-502-889-2103, Doug.BennettJr@wellpoint.com, all of WellPoint, Inc.
Web Site: http://www.wellpoint.com