Humana completes acquisition of CarePlus Health Plans of Florida
CarePlus provides Medicare Advantage HMO plans and benefits to approximately 50,000 Medicare eligible people in Miami-Dade, Broward and Palm Beach counties. Humana anticipates the acquisition to be immediately accretive to earnings, adding earnings at an annual rate of approximately $0.15 to $0.18 per diluted share during the first 12 months, including the impact of integration costs incurred. Given the February 16, 2005 closing date for the transaction, Humana is raising its guidance for 2005 diluted earnings per common share (EPS) by $0.15 to $2.20. Prior company 2005 EPS guidance was $2.05 and excluded any impact from the CarePlus transaction. The company is also raising its guidance for 2005 cash flows from operations to a range of $625 million to $675 million; and now forecasts its Medicare membership to be in the range of 470,000 to 485,000 by the end of 2005, inclusive of the CarePlus members. "This is a great day for CarePlus and Humana members as we join two well- known and respected companies to offer a broad choice of Medicare health benefits to the growing South Florida Medicare market," said Michael Seltzer, CEO of Humana's Florida senior products.