LexisNexis to Pay $20 Million to Buy Out ACA’s Insurers
The health insurer Lexis Nexis said Wednesday it would pay $20 million to buy out the insurance operations of 27 insurers that it acquired under the Affordable Care Act.
The acquisition comes less than a week after the company said it was dropping plans for individual market insurers under the ACA and will offer the bulk of its plans through the exchange.
“Our acquisition of the ACA marketplaces represents a strategic, strategic partnership between Lexis and the ACA,” Lexis CEO Greg Smith said in a statement.
“We believe this strategic partnership will deliver stronger value to consumers and lower premiums for the average American.”
Lexis said the deal is expected to close by the end of the year.
Lexis will use the money to “fund the creation of new businesses, new product lines, and additional product development.”
The deal was first reported by Reuters.