(By Balaseshan) Health insurer Humana Inc. (NYSE:HUM) said it has purchased New York-based employee assistance program provider Harris, Rothenberg International Inc. (HRI) for an undisclosed sum.
The acquisition of HRI is not expected to materially impact Humana's financial earnings guidance for the year ending December 31, 2012. The acquisition will support Humana's efforts to help employer-customers reduce health care spending while also targeting productivity challenges.
Loss of productivity due to problems with presenteeism, absenteeism, health issues and disabilities represents up to 10% of a typical employer's payroll expense. HRI currently serves about 5.5 million people in the U.S. and another 70,000 internationally.
Now in its 31st year, HRI provides services to employers assisting employees in dealing with personal issues ranging from emotional, financial and legal problems to child/elder care needs to alcoholism and drug abuse. HRI's services include employee coaching and training.
Additionally, HRI will open a new pathway for growth as Humana creates a product that better addresses 3rd party and Humana internal customer needs.
"Employee assistance programs and work-life programs are key elements of Humana's total well-being approach to helping people lead healthier lives," said Sean Slovenski, leader of Humana's Health and Productivity Solutions unit.
Slovenski also said HRI will help facilitate the expansion of Humana's employee assistance programs and work-life offering – integrating and enhancing many aspects of the offering.
HUM is trading down 1.12% at $66.88 on Thursday. The stock has been trading between $59.92 and $96.46 for the past 52 weeks.