On November 10, Anthem, Inc. announced that it entered into an agreement to acquire Integra Managed Care, a managed long-term care plan in New York, from a wholly-owned indirect subsidiary of Personal Touch Holding Corporation. Financial terms of the transaction were not disclosed.
Founded in 2014, Integra Managed Care is a New York-based managed long-term care plan serving Medicaid beneficiaries in need of long-term supportive services to help adults with long-term care needs and disabilities live safely and independently in their home and community. Integra serves 40,000 Medicaid members across the five boroughs of New York, Nassau, Suffolk and Westchester.
Anthem, Inc. is a leading provider of health insurance in the United States, as well as the largest for-profit, managed health care company in the Blue Cross Blue Shield Assocation. Through its affiliated companies, Anthem serves over 117 million people, including more than 45 million within its family of health plans.
“This acquisition aligns with our goal of growing Anthem’s Medicaid business, while serving our members with a comprehensive and coordinated approach to care,” said Felicia Norwood, Executive Vice President of Anthem’s Government Business Division. “Like Anthem, Integra has established connections with community groups to gain a deeper understanding of how to best support the whole-health needs of the people we are privileged to serve.”
The Integra acquisition will expand Anthem’s Medicaid business, which is an area that has seen significant growth this past year as federal policies have barred states from removing Medicaid members from coverage during the COVID-19 pandemic. In fact, in just the third quarter alone, Anthem reported a 21% increase in its Medicaid membership compared with the third quarter of 2020, and growth in its Medicare business has been just as strong with a 19% increase compared with the prior-year quarter. At the same time, as Anthem has seen sizable growth in its government-sponsored business, its commercial segment has remained stagnant as the pandemic has led to historic job losses, cutting Americans from their job-based coverage.
The acquisition is expected to close by the end of Q2:22. Upon closing, Integra will join Anthem’s Government Business Division.
White & Case, Hinman Straub and Lewis Rice are acting as legal advisors for Anthem, while Ruskin Moscou Faltischek, Greenberg Taurig and ESOP Law Group are acting as legal advisors for Integra in the sale.
