Mutual of Omaha Advantage Is No More

In the news today, and confirmed by company officials, Mutual of Omaha has sold off its brand new Medicare Advantage program to the sister company of the one who was being paid to administer it for Mutual of Omaha. See the news below... According to a news report (press release put out by Lumeris), Mutual of Omaha is getting out of the short-lived Medicare Advantage business. Early indications are that they will continue to offer their stand-alone Part D drug program, at least for now. Essence Healthcare and Mutual of Omaha Reach Agreement in Principle for Essence to Acquire Mutual of Omaha’s Medicare Advantage Business Closing of the transaction will expand Essence’s Medicare Advantage business February 24, 2020 05:00 PM Eastern Standard Time ST. LOUIS--(BUSINESS WIRE)--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. ABOUT LUMERIS 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. Contacts Lumeris Marcus Gordon 678-358-4807 mgordon@lumeris.com

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