Avera Health buys Dakotacare

Nov. 20--With the planned acquisition of Dakotacare, Avera Health will not only expand its services, but will also create what it says will amount to the second-largest health insurer in South Dakota.

When combined, Avera Health Plans and Dakotacare will serve nearly 200,000 members, according to a news release about the transaction.

The two companies announced the signing of a letter of intent to purchase on Thursday morning.

Jay Gravholt, Avera Health director of media relations, said the purchase should not affect rates or coverage of current members.

"The goal is to not see any changes," he said. "And, of course, everything for 2016 is already set in place."

Avera Health will operate the insurers as two separate organizations.

"Avera is committed to maintaining the Dakotacare brand, the broad network of providers and the positive relationships with the more than 400 insurance agents across the state," said Rob Bates, senior vice president of Avera Health.

According to the release, Dakotacare's provider network includes all South Dakota hospitals and more than 98 percent of the state's physicians and pharmacies.

A purchase price was not released. The target date for finalizing the purchase is Nov. 30.

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