The health insurance giant UnitedHealthcare plans to acquire Baltimore-based XLHealth Corp., bolstering the company's portfolio of Medicare Advantage plans. The plans focus on Medicare recipients with chronic illnesses or other special needs. XLHealth's Care Improvement Plus plan focuses on the underserved.
XLHealth, currently owned by management and affiliates of MatlinPatterson Global Opportunities Partners III LP, now serves about 113,000 Medicare Advantage members in Maryland and five other states and plans to expand to six more states next year. The company expects the expansion will push its 2012 revenues over $2 billion.
The price for XLHealth was not disclosed, but the all-cash deal is expected to close in the first half of 2012. A spokesman for UnitedHealthcare, which took in almost $36 billion in revenue in 2010 from its Medicare business, would not comment on the possibility of layoffs but said more information on integration plans would be provided to employees after the deal closes.