Anthem To Boost Medicare In Florida With HealthSun Buyout

Anthem, Inc. (NYSE:ANTM) has inked a deal to acquire HealthSun, one of the fastest-growing integrated Medicare Advantage health plans provider in Florida. The transaction, presently subject to regulatory approvals, is slated to be completed by the end of 2017. Anthem expects this buyout to significantly impact its 2018 earnings.

Share Price Performance

Anthem’s inorganic growth has substantially boosted its revenue base which seems to be appreciated by investors. In the last year, Anthem’s shares have gained 45%, outperforming the industry’s rally of 38%. This buyout is expected to add momentum to the stock, going forward.

Why HealthSun?

Since 2005, HealthSun, with its 40,000 members-base has witnessed rapid growth in Florida. The company offers an integrated Medicare Advantage health plan and healthcare delivery system through a network of primary care clinics, pharmacy support and transportation services, a narrow network of physician specialists and integrated medical cost management. It was given a 4.5 in Star Ratings by the Centers for Medicare and Medicaid for 2017 and 2018 reimbursement areas.

What Aids Anthem?

Anthem’s Medicare business holds immense potential for long-term growth. The company expects HealthSun buyout to be accretive to its Medicare business.

Anthem expects the acquisition to help in building an integrated care delivery model that would serve both the Medicare and Medicaid members. Moreover, the transaction is likely to leverage Anthem’s commitment to offer a vast range of value-based care models to aid its members with high quality care and improved outcomes. Through the acquisition of HealthSun, Anthem’s affiliated Medicare and Medicaid plans are estimated to serve more than 0.650 million members in Florida.

Zacks Rank & Stocks to Consider

Anthem presently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in this space can consider stocks like Aetna, Inc (NYSE:AET) , Wellcare Health Plans, Inc. (NYSE:WCG) and Amedisys Inc (NASDAQ:AMED) . All the three stocks carry a Zacks Rank #2 (Buy).

Aetna’s earnings surpassed expectations in each of the last four quarters with an average beat of nearly 19%.

Wellcare Health delivered positive surprises in each of the last four quarters with an average beat of 47.4%.

Amedisys delivered positive surprises in three of the last four quarters with an average beat of 7.2%.

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