Closing of the transaction will expand Essence’s Medicare Advantage business
St. Louis, MO – February 24, 2020 – Essence Healthcare, sister company of Lumeris, has reached an agreement in principle to acquire Mutual of Omaha Medicare Advantage Company (MOMAC) and Medicare Advantage Company of Omaha (MAICO). The Mutual of Omaha subsidiaries own Medicare Advantage businesses in the Cincinnati, San Antonio, Dallas, Denver and El Paso markets. MOMAC and MAICO’s Medicare Advantage plans are currently operated by Lumeris, and Lumeris will continue to operate the plans after the transaction is completed, avoiding any disruption for plan members or providers.
“We have enjoyed our close working relationship with Mutual of Omaha,” said Richard Jones, CEO of Essence Healthcare. “The acquisition of these plans will significantly accelerate our footprint in Medicare Advantage, and materially change our expansion plans. Accordingly, we will need to reorganize and restructure our business to accommodate this opportunity.”
The transaction is expected to close by mid-2020 after receiving required regulatory approvals. No deal terms were announced. Mutual of Omaha is a significant long-term investor in Essence Group Holdings. The transaction does not affect Mutual of Omaha’s other senior health businesses, including its nationwide Medicare Supplement, Medicare Part D, and senior dental and vision plans.
ABOUT ESSENCE HEALTHCARE
Essence Healthcare provides comprehensive and affordable health insurance to over 64,000 people with Medicare in Missouri and southern Illinois. Founded in 2004, Essence Healthcare has been consistently rated one of the highest quality Medicare Advantage plans in the nation, averaging an overall plan rating of 4.5 Stars the last ten years. Essence’s unique approach to health insurance and unwavering commitment to protecting the health and wellness of people with Medicare has helped the company earn the trust of the communities it serves as well as national recognition as a leader in the positive transformation of our country’s healthcare system.
Lumeris enables a new model for healthcare. As a value-based care managed services operator, Lumeris helps health systems and providers deliver extraordinary clinical and financial outcomes. With partners across the country, we align providers and payers with a proven model that coordinates operational processes, resources and technology to achieve high-quality, cost-effective care with satisfied consumers and engaged physicians.