Tuesday, February 26, 2008

How Profitable is Medicare Advantage? The United/Humana Deal in Las Vegas Says a Lot

UnitedHealth and Humana have announced that Humana will acquire UnitedHealth's Las Vegas Medicare Advantage business for $185 million.

The transaction was important for United in order to get Justice Department approval of UnitedHealth's acquisition of Sierra Health Systems.

That $185 million gets Humana only another 25,000 seniors--at a price of $7,400 a customer.
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