WellPoint reorganizes into four business units

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based WellPoint Inc. will reorganize into four business units in the first major move undertaken by interim CEO John Cannon.

In a memo sent to employees Thursday, Cannon said the changes will help smooth the integration of Amerigroup Corp., the insurer WellPoint agreed to buy in July for $4.9 billion.

The reorganization will put Amerigroup CEO James Carlson in charge of the combined company’s Medicaid business, while Chief Financial Officer Wayne DeVeydt remains in his job, according to the memo obtained by Bloomberg.

The moves follow former CEO Angela Braly’s investor-initiated resignation on Aug. 28, after five years in which the country’s second-biggest health insurer struggled at times to predict medical costs and keep enrollments up. Cannon was named interim CEO, and the board said he wasn’t interested in being the permanent replacement.

“Each business unit will be provided the resources, decision-making authority and direct control over matters that are critical to its success,” Cannon wrote in the memo, confirmed as authentic by spokeswoman Kristin Binns.

Separate Medicare and Medicaid divisions each will sell plans for those government-backed insurance programs, according to the memo.

A commercial and individual unit will handle sales to large and small employers, individual customers and those buying in the new insurance exchanges created in the federal health-care law.

Dental, vision and disability coverage will be under a specialty unit, the memo said.

Carlson will run the Medicare division, Leeba Lessin the Medicare unit, Lori Beer the specialty unit and Kenneth Goulet the commercial and individual business. Goulet and Carlson had been named by analysts as potential replacements for Braly.

Binns declined to comment on the CEO search.

The reorganization was made “to evaluate and modify our organizational structure so that we are best positioned to take advantage of the tremendous growth opportunities that lie ahead,” she said. “We have the right strategy and the right people in place to ensure that WellPoint will continue to be the most trusted choice for health care consumers.”

WellPoint fell 2 percent to $62.79 at the close of New York trading Thursday. Its shares have dropped 5.2 percent this year.

UnitedHealth Group Inc., based in Minnetonka, Minnesota, is the biggest U.S. health insurer.


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. I still don't understand how the FBI had any right whatsoever to investigate this elderly collector. Before the Antiquities Act it was completely legal to buy, trade or collect Native American artifacts. I used to see arrow heads, axes, bowls, corn grinders at antique shops and flea markets for sale and I bought them myself. But that was in the late 60's and early 70's. And I now know that people used to steal items from sites and sell them. I understand that is illegal. But we used to find arrow heads and even a corn grinder in our back yard when I was a child. And I still have those items today in my small collection.

  2. I lived in California and they had many of the things noted in the proposed suggestions from the "Blue Ribbon Panel". California is near financial collapse now. Let's not turn the great state of Indiana into a third world dump like California.

  3. The temporary closure of BR Avenue will get a lot of attention. But, one thing reported by the IndyStar really stands out to me, and is extraordinarily depressing: “Police also have agreed to crack down on noise violations, traffic violations and public intoxication.” In other words, the police have generously agreed to do their jobs (temporarily, at least), instead of just standing around waiting for someone to call 911. When is someone in this department going to get off their fat arse (looking at you, Chief), get their minds out of 1975-era policing and into 2014, and have his department engage in pro-active work instead of sitting around waiting for someone to be shot? Why in the hell does it take 7 people getting shot in one night in one of the city’s biggest tourist destinations, to convince the police (reluctantly, it would appear) that they actually need to do their f’n jobs? When is the Chief going to realize that there’s a huge, direct, proven correlation between enforcing the law (yes, all laws, especially those affecting quality of life) and preventing larger crimes from occurring? Is it racial BS? Is that what this extraordinary reluctance is all about? Is the department and the city terrified that if they do their jobs, they might offend someone? Whom, exactly? Will the victims of violence, murder, assault, rape, robbery, and theft be offended? Will the citizens who have to tolerate their deteriorating quality of life be offended? Will the businesses who see their customers flee be offended? Or, is it simple ignorance (maybe the Chief hasn’t heard about NYC’s success in fighting crime - it’s only the biggest g*&#am city in the country, after all)? Either way, Chief, if you don’t want to do your job, then step down. Let someone who actually wants the job take it.

  4. I thought Indiana had all the funding it needed for everything. That's why the state lottery and casino gambling were allowed, as the new tax revenue would take care of everything the state wanted to do.The recommendations sound like they came from California. Better think about that. What is the financial condition of that state?

  5. I was a fan of WIBC in the morning, Steve was the only WIBC host that I listened too, he gave the news with so much flare that I enjoyed listening to him on my way to work. Katz is no Steve. Sadly, I will not be listening to WIBC anymore.