HealthSpring shareholders OK acquisition by Cigna

NASHVILLE, Tenn. -- HealthSpring Inc. shareholders have approved the insurer's planned acquisition by larger managed care provider Cigna Corp., moving the two companies closer to completing the deal.

HealthSpring, based in Nashville, Tenn., said nearly all the stockholders voted in favor of the deal at a special meeting Thursday. The shareholders represented about 83 percent of HealthSpring's total outstanding shares as of Dec. 8.

The acquisition has received antitrust clearance but still needs state regulatory approvals.

Bloomfield, Conn.-based Cigna said in October that it would buy HealthSpring for about $3.8 billion to build its Medicare Advantage business. Medicare Advantage plans are privately run versions of the government's Medicare insurance program for the elderly and disabled. Interest in those plans is expected to grow as the baby boomer generation ages and becomes eligible for them.

Cigna has about 45,000 Medicare Advantage customers, while Nashville, Tenn.-based HealthSpring has about 340,000 and another 800,000 Medicare prescription drug plan members.

HealthSpring shares were flat in morning trading, while Cigna dropped 36 cents to $45.02.