Kentucky Insurance

Les Etats-Health Care Corporation, the world’s largest insurers of the nation, yesterday agreed to buy Humana Inc. for $ 5.5 billion, plus the shrinking number of competitors in the industry and options managed care plans for consumers.

The combination of health plans, with more than 10 million members across the country, dominate the south of Florida. It would be largest insurer of Chicago and in several other cities in the Middle West.

The two companies said the agreement, its ability to offer their services, patients and national coverage for large employers. But some of the benefits consulting health requires a certain part of a combination of consolidation of the trend disturbing for many Americans, in the Managed Care arrangements.

Humana”war a very aggressive player,’’said John Erb, a consultant in Boca Raton, Florida, with Arthur J. Gallagher & Company. They gave les”Blue Cross and the USA a race for their money. Well, that competition is dry. It is reduced for employers and consumers’ decisions.”

Both United and Humana recently reported solid financial results, after their success to the increase this year, the premiums. But like other insurers, they are under pressure to produce profits, given that consumer demand less restrictive rules, governments propose tighter rules, hospitals and doctors are reluctant to some economization.

Managed Care business, which is also a pair of scissors on public procurement payments for Medicare for the elderly and disabled, and Medicaid for low-income people. United Health Care, which is based in Minnetonka, Minn., outside Minneapolis, Humana, Louisville, Ky., A 902000 members Medicare and Medicaid 1.2 million members.

Among the conditions of all stock deal announced yesterday, United Health Care, an exchange of their shares for two shares of Humana and leave, $ 850 million debt Humana. Based on the closing price United share-price Wednesday of $ 64125 before the deal was announced, the value of the share exchange is-$ 5.5 billion.

United Health Care is part fell yesterday, 1625 $ $ 62.50, while Humana’s jumped $ 3625 $ 29875e

The agreement is the latest in a series of large-scale mergers and acquisitions in health insurance. In March, Aetna Inc., the USA Health Care bought for $ 8.8 billion during the year 1996, for health care Nylcare unit of the New York Life Insurance Company at $ 1.35 billion a Deal .

Humana United and two were through acquisitions, notably in 1995 by the purchase of United Metra public health, itself a combination of units of Metropolitan Life and Travelers Insurance Company.

David Jones, an entrepreneur from Kentucky, Humana created with a partner in 1961. On the ownership of homes and later hospitals. Humana spin-off of hospitals during the year 1993 as a standalone company, Galen Health Care Inc., which was subsequently taken over by the chain, that Columbia / HCA Healthcare Corporation.

Mr. Jones, president of Humana, and Dr. William W. McGuire, president of United, said the combined company would open access””Gesundheit United’s plans, with which members to consult each specialist a list of United Without the prior authorization by their primary physician.

Mr. Jones said she had Kosten”Hunderte Humana Dollar”für of millions of duplicate computer systems, les Etats-developed, thereby allowing more flexible opportunities for doctors to consumers, while the continued operation of doctors, a factor important cost control device Managed Care plans.