UnitedHealth Group Inc. is planning to acquire Peoples Health Inc., according to a news report.
In statements to The Times-Picayune, both UnitedHealth and Peoples Health reportedly confirmed that the deal is underway, although terms were not disclosed.
The Louisiana-based health insurer currently employs about 850 people and insurers nearly 63,000 members, according to recent regulatory filings.
The potential acquisition by UnitedHealth is in line with the company's push to expand its private Medicare insurance known as Medicare Advantage. According to Peoples Health, the company's "primary focus" is providing coverage to people with Medicare.
In UnitedHealth's first-quarter earnings report, the company stated that it served 330,000 Medicare Advantage members, reflecting 10.6% growth year over year. Medicare Advantage is a combination of different Medicare offerings under a single plan, managed by private insurers and heavily subsidized by the government.
The deal is awaiting regulatory approval, UnitedHealth told the newspaper in a statement.
