The new chief executive officer (CEO) at WellPoint Inc. (NYSE:WLP) is slimming the health insurer's business units to two from four as the company prepares for coverage expansions that will hit the market next year as part of the health care overhaul.
The Indianapolis company said Monday after markets closed that its commercial health insurance, the coverage it sells on insurance exchanges and specialty businesses, will be grouped under a Commercial and Specialty Business Division.
The insurer's work with government-sponsored programs like Medicaid and Medicare will fall under a Government Business Division.
The federal overhaul aims to expand coverage to millions of uninsured people. Much of that growth will start next year, when people will be able to buy health insurance with income-based tax credits and the state-federal Medicaid program for the poor and disabled people will expand in many states.
CEO Joseph Swedish, who joined WellPoint in March, said he and the company's executive leadership will be focused on analyzing WellPoint's strategic priorities and readiness for 2014.
