Environmental and Public Protection Cabinet
Humana acquisition of CHA approved
FRANKFORT, Ky. (April 24, 2006) – The acquisition of CHA HMO Inc. by Humana Health Plan Inc. has received final approval from the Kentucky Office of Insurance (KOI).
KOI Executive Director Glenn Jennings signed the final order this morning adopting the recommendation from hearing officer Steve Blanton, who presided over an April 13 public hearing.
“After close review of all relevant documentation, we found nothing to cause concern regarding this acquisition,” said Jennings. “As a matter of fact, we believe it will have a positive impact on Kentucky’s health insurance market.”
Under the terms of the agreement, Humana will pay $55 million for control of CHA. The University of Kentucky holds over 80 percent of the CHA shares with other hospitals as minority shareholders.
According to evidence submitted at the hearing, Jennings said he does not expect existing CHA policyholders to be adversely affected and does not expect visible changes in CHA’s operations.
The Office of Insurance is an agency of the Environmental and Public Protection Cabinet.