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HUMANA AND GROUP HEALTH ASSOCIATION SIGN LETTER OF INTENT

 LOUISVILLE, Ky., July 12 /PRNewswire/ -- Humana Inc. (NYSE: HUM) and Group Health Association (GHA) have signed a letter of intent whereby Humana would acquire the Washington, D.C.-based health plan. Under the agreement, Humana would acquire GHA, a 134,000 member group, for approximately $50 million. The actual amount will be based on the final net assets purchased.
 The agreement is subject to regulatory approvals in Maryland, Virginia and Washington, D.C. In addition, GHA will ask its members to approve the sale to Humana. Ballots requesting approval will be mailed to members today and must be returned by August 9, 1993.
 Closure of the transaction is dependent upon a due diligence review and the successful negotiation of provider contracts.
 "Humana is pleased to be able to add the country's second oldest health maintenance organization to its network of health plans," said Wayne T. Smith, Humana's president and chief operating officer. "This acquisition introduces Humana into one of the largest markets in the country and serves to expand Humana's presence nationally."
 GHA president Robert P. Pfotenhauer said, "Partnership with Humana will strengthen our ability to provide high quality medical services to our members as well as allow GHA to expand its services and facilities and introduce new insurance products."
 GHA, founded in 1937, is a staff model health maintenance organization that provides comprehensive medical coverage to metropolitan Washington, D.C.-area employer groups, individuals and Medicare beneficiaries.
 Humana, based in Louisville, Ky., provides managed care health plan services to approximately 1.6 million members primarily through the operation of health maintenance organizations and preferred provider organizations.
 -0- 7/12/93
 /CONTACT: Laurie G. Scarborough of Humana, 502-580-1037/
 (HUM)


CO: Humana, Inc.; Group Health Association ST: Kentucky, District of Columbia IN: HEA SU: TNM

CM -- CH005 -- 0428 07/12/93 12:36 EDT
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Publication:PR Newswire
Date:Jul 12, 1993
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