Humana Acquires
Louisiana Health Plan

On April 1, 2004, Humana Inc. completed its purchase of Ochsner Health Plan, a federally qualified HMO based in New Orleans. One of the largest health plans in Louisiana with more than 190,000 members, Ochsner is Humana’s first major medical plan acquisition since the PCA and ChoiceCare deals in 1997.

“The acquisition of Ochsner Health Plan is an opportunity for Humana to continue its efforts to increase its presence in the large group market,” said Michael B. McCallister, Humana’s president and CEO. “We believe the combination of Humana’s industry-leading innovative health benefit programs and Ochsner’s well-respected position in this market makes this a unique opportunity for growth in the New Orleans area.”

Ochsner Health Plan offers group HMO and POS products to large and small employers, as well as Medicare Advantage (formerly Medicare + Choice) and other types of plans to individuals and their families. Ochsner, which is licensed in all 64 Louisiana parishes, maintains a provider network boasting more than 1,000 primary care physicians, 2,700 specialists, 60 hospitals and 90 ancillary providers.

Humana sees a considerable upside to adding Ochsner to its nationwide family of health plans. “This enhances our presence in the southeastern United States, a critical growth area,” said Dick Brown, Humana’s director of media relations. “It allows us to gain significant share in a major metropolitan market.”

The impact of this deal extends beyond Louisiana. Adjacent markets, such as Houston, will benefit from Humana’s larger regional footprint. The purchase also raises Humana’s profile with multi-state firms doing business in that part of the country. “One result of the acquisition is that we’re more attractive to national accounts,” said Brown.

Ochsner, too, will benefit from combining with a company that shares its commitment to service and quality. The health plan, which currently has an “excellent” rating from the National Committee for Quality Assurance (NCQA), will be able to offer members and physicians more than ever with the introduction of new product lines and leading-edge clinical programs.

“The two organizations have complementary strengths,” noted Brown. “We have the resources that Ochsner needs to build on its bedrock success.”

With the purchase completed, Humana has begun a gradual process of integrating the administrative structures of the two companies. “Where it makes sense to combine operations, we’ll do it,” said Brown. “Where it doesn’t, we won’t.”

As in other Humana markets, local personnel will retain control of key functions, including medical management and provider relations. “We recognize the valuable role that the market offices play,” said Brown.

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