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UnitedHealth Agrees to Buy Managed-Care Provider XLHealth

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UnitedHealth Group Inc., the largest U.S. health insurer by sales, said it will buy XLHealth Corp., a provider of managed care for chronically ill Medicare members, to strengthen a growth area likely to gain increasing support from the U.S. government as it trims costs.

The purchase price was about $2 billion, according to a person familiar with the deal who asked not to be identified because the price wasn’t disclosed. The all-cash agreement will be completed in the first half of 2012 and is expected to add to earnings per share, Minnetonka, Minnesota-based UnitedHealth said in a statement today.