Anthem, Inc. (NYSE: ANTM) announced today the completion of its
acquisition of Simply Healthcare Holdings, Inc. (“Simply Healthcare”), a
leading managed care company for people enrolled in Medicaid and
Medicare programs in the state of Florida.
“The addition of Simply Healthcare to our family of companies grows our
presence and enhances our capabilities and offerings to members in
Florida, not only in Medicaid but also by giving us a strong foothold in
the Medicare Advantage market,” said Joseph Swedish, president and CEO
of Anthem, Inc. “This acquisition further enhances our role as a leader
serving the high needs populations in the state.”
Simply Healthcare will operate as a wholly-owned subsidiary of Anthem
and will remain dedicated to effectively providing access to products
and affordable care that meets the needs of the Medicaid and Medicare
populations in Florida. Simply Healthcare’s management team will join
Anthem’s government business division team and continue to lead Simply’s
operations in Florida.
“All of us at Simply Healthcare are looking forward to becoming part of
the Anthem family,” said Lourdes T. Rivas, CEO of Simply Healthcare
Plans. “We remain committed to our members and our physician network
across Florida as we continue to grow with Anthem.”
Simply Healthcare and its affiliates, Better Health and Clear Health
Alliance offer a variety of Medicare and Medicaid plans to members in 60
Florida counties and serves 177,000 Medicaid and 21,000 Medicare
members. With Simply Healthcare, Anthem’s affiliated health plans now
serve more than 500,000 members in Florida.
Financial terms of the transaction were not disclosed. The transaction
is expected to be neutral to earnings in 2015. We continue to expect
full year 2015 net income to be greater than $9.30 per share, including
greater than $0.40 per share of amortization of other intangible assets.
Excluding this item, we continue to expect adjusted net income to be
greater than $9.70 per share. This guidance includes no investment gains
or losses in 2015.
About Anthem, Inc.
Anthem is working to transform health care with trusted and caring
solutions. Our health plan companies deliver quality products and
services that give their members access to the care they need. With more
than 68 million people served by its affiliated companies, including
more than 37 million enrolled in its family of health plans, Anthem is
one of the nation’s leading health benefits companies. For more
information about Anthem’s family of companies, please visit www.antheminc.com/companies.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
Anthem 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, filings with the Securities and
Exchange Commission, or SEC, 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 (Health Care Reform); 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
participation in the federal and state health insurance exchanges under
Health Care Reform, which have experienced technical difficulties in
implementation and which entail uncertainties associated with the mix
and volume of business, particularly in our individual and small group
markets, that could negatively impact the adequacy of our premium rates
and which may not be sufficiently offset by the risk apportionment
provisions of Health Care Reform; 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
our industry and our ability to resolve litigation and investigations
within estimates; medical malpractice or professional liability claims
or other risks related to health care services provided by our
subsidiaries; 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 by any party with
the Express Scripts, Inc. pharmacy benefit management services
agreement, which could result in financial penalties, our inability to
meet customer demands, and sanctions imposed by governmental entities,
including the Centers for Medicare and Medicaid Services; events that
result in negative publicity for us or the health benefits industry;
failure to effectively maintain and modernize our information systems
and e-business organization and to maintain good relationships with third
party vendors for information system resources; events that may
negatively affect our licenses 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 or employee sensitive or confidential
information, including the impact and
outcome of investigations, inquiries, claims and litigation related to
the cyber attack we reported in February 2015; 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 provisions in our
governing documents that 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.
Copyright Business Wire 2015