Humana announces partnership with CareSource

LOUSVILLE, Ky. -- Humana Inc. said Tuesday that it is forming a partnership with nonprofit CareSource to provide services to people who are eligible for both Medicare and Medicaid.

Humana has more than five million Medicare members around the U.S., and CareSource has 900,000 Medicaid members. Most of CareSource's members are in Ohio. The rest are in Michigan. The companies did not disclose financial terms of their alliance, but they said they will have an exclusive relationship in states where they work together.

The companies are reaching out to a group of patients called "dual eligibles." Those patients generate a lot of medical claims and are responsible for an outsize portion of Medicare and Medicaid costs. Federal and state governments have been looking to place them into managed care to improve coverage, reduce spending and eliminate duplicate tests.

Medicare is the federal program that provides health coverage for the elderly and disabled. Medicaid is a state and federal program that covers the aged, blind, needy and disabled. States hire private health insurers to run their Medicaid programs.

Shares of Humana fell $1.83, or 2.1 percent, to close at $85.34. They rose 12 cents in after-hours trading.