Humana closes buyout of Tennessee insurer Cariten

LOUISVILLE, Ky. - Health insurer Humana Inc. said Friday it has completed its $245 million acquisition of Tennessee-based Cariten Healthcare.

Humana said in August that it would buy Cariten, formally called PHP Cos., from rival Covenant Health of Knoxville, Tenn. It said regulators have approved the deal, which won't affect its 2008 profit significantly.

The deal gives Humana approximately 214,000 commercial, Medicare and Medicaid members. It will lose the 93,000 Medicaid members, however, because a contract between Cariten and the TennCare contract will expire Dec. 31 and won't be renewed.

In afternoon trading, Humana shares lost 79 cents, or 2.7 percent, to $28.89, and fell as far as $25.01, their lowest price in almost four years.

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