Universal American

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Universal American Corporation
AbbreviationUAM
MottoA Healthy Collaboration
TypePublic
HeadquartersWhite Plains, NY
Websitewww.universalamerican.com
UAM logo after Wellcare acquisition[1]

Universal American (NYSEUAM) is a Fortune 500[2] company with offices throughout the United States, and headquarters in Rye Brook, New York. The company offered health insurance, and also deals in Medicare managed care plans, and Medicare prescription drug benefits. Its CEO is Richard A. Barasch.

History[edit]

The Company was incorporated as a stock health insurance company on September 22, 1945 under the name American Progressive Health Insurance Company of New York. [3] In 1991, Richard Barasch was elected to Chairman of the Board and Chief Executive Officer.

In 1998 Universal American Financial Corporation (Universal American) agreed to a Share Purchase Agreement with Capital Z Financial Services, a NYC based Private Equity Firm. Capital Z acquired approximately a 59.7% controlling interest in the Company for approximately $81 million.[4]

The Company, then known as American Exchange, utilized the proceeds from the Capital Z transaction to acquire various subsidiaries of the former PennCorp Financial Group, Inc: Pennsylvania Life Insurance Company (“PLIC”), Constitution Life Insurance Company, Union Bankers Insurance Company, Marquette National Life Insurance Company, PennCorp Life Insurance Company (Canada), and Peninsular Life Insurance Company.[3]

In 2007, Universal American acquired MemberHealth, LLC a privately held pharmacy benefit manager and sponsor of Community Care Rx, a national Medicare Part D plan with more than 1.1 million members.[5] In conjunction with the acquisition, Universal American Financial Corporation changed its name to Universal American Corporation (UAM) in December of 2017[6] and listed on the New York Stock Exchange.[7] CEO Richard Barasch remarked: "“We are delighted to be making the move to the Big Board. As our business grows and diversifies, especially following the completion of our recent merger with MemberHealth, raising Universal American's visibility among the population we serve and in the financial markets becomes increasingly more important. We are proud of the performance we’ve delivered to shareholders and view our listing on the Exchange as an important milestone in the evolution of our company.”[7]

In 2011, CVS Caremark acquired Universal American's Medicare Part D business for $1.25 billion. At the time, Universal American's Part D business served about 1.9 million members, more than doubling CVS Caremark's members to a combined 3.1 million. Per Lofberg, president of Caremark Pharmacy Services, said the deal further highlights the company's position as "a significant player in one of the nation's fastest-growing segments of the Pharmacy Benefit Management industry."[8][9]

In 2016, WellCare acquired Universal American in a deal worth an estimated $800 million.[10]

References[edit]

  1. ^ "UAM Migration | WellCare". www.wellcare.com. Retrieved 2019-07-10.
  2. ^ "FORTUNE 500: Universal American". archive.fortune.com. Retrieved 2019-07-10.
  3. ^ a b "State of New York Insurance Department Report on Financial Condition Examination of America Progressive Life and Health Insurance Company". NY State Department of Financial Services. 6/7/11. Archived from the original (PDF) on |archive-url= requires |archive-date= (help). Retrieved 7/10/19. Check date values in: |access-date=, |date= (help)
  4. ^ "Universal American (UAM) Plans 6M Common Buyback from Capital Z Partners". StreetInsider.com. Retrieved 2019-07-10.
  5. ^ www.sec.gov https://www.sec.gov/Archives/edgar/data/709878/000110465907036736/a07-13561_2ex99d1.htm. Retrieved 2019-07-10. Missing or empty |title= (help)
  6. ^ "Universal American Announces Name Change and Listing on the New York Stock Exchange". www.businesswire.com. 2007-11-19. Retrieved 2019-07-10.
  7. ^ a b "Universal American Announces Name Change and Listing on the New York Stock Exchange". www.businesswire.com. 2007-11-19. Retrieved 2019-07-10.
  8. ^ Kell, John (2011-01-01). "CVS to Buy Universal American Drug Business". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-07-10.
  9. ^ "Universal American to Sell Medicare Prescription Drug Business to CVS Caremark". www.businesswire.com. 2010-12-31. Retrieved 2019-07-10.
  10. ^ "WellCare bets on Medicare with $800 million buyout of Universal American". Modern Healthcare. 2016-11-17. Retrieved 2019-07-10.