California employers will soon have access to a wider range of dental benefits with Unum’s purchase of a dental health maintenance organization (DHMO) in California.
Unum, through a wholly-owned subsidiary, has completed the acquisition of Jaimini Health, Inc., the California DHMO doing business as PrimeCare Dental Plan (“PrimeCare”).
Today’s announcement is the company’s first step to expanding Unum’s dental portfolio to include a DHMO product. PrimeCare provides Unum with unique DHMO expertise and access to a Knox-Keene license required to operate health maintenance organizations in California.
Unum expanded its presence in the dental market after the 2016 acquisition of dental and vision benefits leader, Starmount Life Insurance Company.
Within the last two years, the two companies launched Unum’s preferred provider organization (PPO) dental and vision plans across the country with great success.
“The market response to Unum’s dental launch exceeded our expectations,” said Erich Sternberg, president of Starmount and Unum’s U.S. dental operations. “We want that momentum to continue with a DHMO solution in California. Through this acquisition, we will be able to offer California brokers and employers more competitive benefit choices with our best-in-class service.”
The PrimeCare operation will serve as a DHMO satellite office and an extension of Starmount’s operations. DHMO plans are expected to be marketed under the Unum brand with an estimated product launch around the third quarter in 2019.
Terms of the sale were not disclosed. The transaction will not alter Unum’s earnings or capital management outlook for 2018, nor does it change Unum’s overall capital management strategy of investing in its business while also returning capital to shareholders through share repurchases and dividends. It is expected to be neutral to accretive to Unum’s earnings per share in 2018.