Health Net to Sell Medicare Stand-Alone Prescription Drug Plan Business to CVS Caremark for Approximately $160 Million
Health Net, Inc. (NYSE: HNT) today announced that its subsidiary, Health Net Life Insurance Company, has entered into a definitive agreement to sell its Medicare stand-alone Prescription Drug Plan business to a subsidiary of CVS Caremark (NYSE: CVS) for approximately $160 million in cash.
Health Net expects to realize approximately $140 million in net cash proceeds from the transaction, after the effect of freed-up capital, taxes and transaction- and transition-related costs.
The transaction, subject to customary closing conditions and applicable regulatory approvals, including approval from the Centers for Medicare & Medicaid Services, is expected to close in the second quarter of 2012.
Health Net has approximately 400,000 Medicare PDP members in 49 states and the District of Columbia. Health Net's annualized revenue for the Medicare PDP business is approximately $490 million.
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