Anthem to Sell Anthem Alliance to Humana

Apr 19, 2001, 01:00 ET from Anthem, Inc.

    INDIANAPOLIS, April 19 /PRNewswire/ -- Anthem, Inc. announced today that
 it has signed a definitive agreement to sell the TRICARE operations of its
 subsidiary, Anthem Alliance Health Insurance Company (Anthem Alliance), to
 Humana Inc.
     Since 1998, Anthem Alliance has administered the Managed Care Support
 Contract for TRICARE Mid-Atlantic (Region 2) and TRICARE Heartland (Region 5).
 Humana's wholly owned subsidiary, Humana Military Healthcare Services (HMHS),
 administers the Managed Care Support Contract for TRICARE Regions 3 and 4 in
 the South and Southeast and will assume responsibility for these newly
 acquired Regions. TRICARE is the health plan for the Department of Defense,
 providing benefits to active and retired military personnel and their
 dependents.
     Under the proposed agreement, Humana will acquire the existing operations
 of Anthem Alliance. The transfer of operations to HMHS is expected to become
 effective by May 31.
     "Anthem is proud of Anthem Alliance's performance," said Barbara J. Gagel,
 Chairman of the Board of Anthem Alliance. "It is a successful company by many
 measures, including the level of service provided to TRICARE beneficiaries."
     "However, Anthem has decided to focus on its core Blue Cross and Blue
 Shield health benefits business and on those specialty businesses that enable
 Anthem to offer a broad line of products to those health plan customers,"
 added Gagel.  "TRICARE administration is outside of this focus."
     "I believe this is a positive decision for the TRICARE program, our
 TRICARE beneficiaries and our Anthem Alliance business," said William R.
 Vandervennet, Jr., President of Anthem Alliance.  "Humana's commitment to the
 TRICARE program and HMHS' successful contract administration in Regions 3 and
 4 will allow a smooth transition for our TRICARE members and providers."
     The transition of operations from Anthem Alliance to HMHS is expected to
 have no impact on the benefits or service received by TRICARE beneficiaries.
     Anthem Alliance administers the Managed Care Support Contract for the
 TRICARE Heartland and TRICARE Mid-Atlantic Regions. TRICARE Heartland includes
 Illinois, Indiana, Kentucky, Michigan, Ohio, West Virginia, Wisconsin, the St.
 Louis area of Missouri, the Ft. Campbell area of Tennessee, and portions of
 Iowa adjacent to the Rock Island Arsenal. TRICARE Mid-Atlantic comprises North
 Carolina and much of Virginia (exclusive of the National Capital Area).  These
 two regions serve more than one million military personnel and their families.
     Anthem, Inc. is an Indiana-domiciled mutual insurance company providing
 health care benefits and services to more than seven million Americans.
 Anthem, which is based in Indianapolis, is the Blue Cross and Blue Shield
 licensee for Indiana, Kentucky, Ohio, Connecticut, New Hampshire, Colorado,
 Nevada and Maine.
 
 

SOURCE Anthem, Inc.
    INDIANAPOLIS, April 19 /PRNewswire/ -- Anthem, Inc. announced today that
 it has signed a definitive agreement to sell the TRICARE operations of its
 subsidiary, Anthem Alliance Health Insurance Company (Anthem Alliance), to
 Humana Inc.
     Since 1998, Anthem Alliance has administered the Managed Care Support
 Contract for TRICARE Mid-Atlantic (Region 2) and TRICARE Heartland (Region 5).
 Humana's wholly owned subsidiary, Humana Military Healthcare Services (HMHS),
 administers the Managed Care Support Contract for TRICARE Regions 3 and 4 in
 the South and Southeast and will assume responsibility for these newly
 acquired Regions. TRICARE is the health plan for the Department of Defense,
 providing benefits to active and retired military personnel and their
 dependents.
     Under the proposed agreement, Humana will acquire the existing operations
 of Anthem Alliance. The transfer of operations to HMHS is expected to become
 effective by May 31.
     "Anthem is proud of Anthem Alliance's performance," said Barbara J. Gagel,
 Chairman of the Board of Anthem Alliance. "It is a successful company by many
 measures, including the level of service provided to TRICARE beneficiaries."
     "However, Anthem has decided to focus on its core Blue Cross and Blue
 Shield health benefits business and on those specialty businesses that enable
 Anthem to offer a broad line of products to those health plan customers,"
 added Gagel.  "TRICARE administration is outside of this focus."
     "I believe this is a positive decision for the TRICARE program, our
 TRICARE beneficiaries and our Anthem Alliance business," said William R.
 Vandervennet, Jr., President of Anthem Alliance.  "Humana's commitment to the
 TRICARE program and HMHS' successful contract administration in Regions 3 and
 4 will allow a smooth transition for our TRICARE members and providers."
     The transition of operations from Anthem Alliance to HMHS is expected to
 have no impact on the benefits or service received by TRICARE beneficiaries.
     Anthem Alliance administers the Managed Care Support Contract for the
 TRICARE Heartland and TRICARE Mid-Atlantic Regions. TRICARE Heartland includes
 Illinois, Indiana, Kentucky, Michigan, Ohio, West Virginia, Wisconsin, the St.
 Louis area of Missouri, the Ft. Campbell area of Tennessee, and portions of
 Iowa adjacent to the Rock Island Arsenal. TRICARE Mid-Atlantic comprises North
 Carolina and much of Virginia (exclusive of the National Capital Area).  These
 two regions serve more than one million military personnel and their families.
     Anthem, Inc. is an Indiana-domiciled mutual insurance company providing
 health care benefits and services to more than seven million Americans.
 Anthem, which is based in Indianapolis, is the Blue Cross and Blue Shield
 licensee for Indiana, Kentucky, Ohio, Connecticut, New Hampshire, Colorado,
 Nevada and Maine.
 
 SOURCE  Anthem, Inc.