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SilverScript Insurance acquires Torchmark units' Medicare prescription drug plan contracts

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SilverScript Insurance acquires Torchmark units' Medicare prescription drug plan contracts

TorchmarkCorp. subsidiaries United American Insurance Co. and sold their Medicare Part D Prescription Drug Plancontracts toSilverScript InsuranceCo., effective July 1.

The purchase price will be based on the number of enrolleesin the contracts as of Jan. 1, 2017.

The net impact of the sale will be included as discontinuedoperations in Torchmark's financial statements and is expected to be immaterialto the company's net income due to the sales proceeds being offset against awrite-off of about $15 million of deferred acquisition costs related to Part D.

The Torchmark subsidiaries will retain responsibility forthe operating results of the contracts for the remainder of 2016 throughreinsurance agreements with SilverScript Insurance, which is a unit ofCVS Health Corp.