WellPoint CEO says mergers a way to grow

WellPoint CEO says mergers a way to grow

	Published : Wed, 28 Feb 2007 23:23 By : Agencies Print this Story

NEW YORK (AP) - Mergers and consumer directed plans will be among the key drivers of WellPoint Inc.'s future growth, said Angela F. Braly, the newly appointed president and CEO of the nation's largest health insurer on Wednesday.

'We get talent and scale from mergers,' said Braly in an interview with The Associated Press, two days after she was named to the job.

Mergers constitute WellPoint's roots. The company was formed in 2004 after Indianapolis-based Anthem Inc. acquired Thousand Oaks, Calif.-based WellPoint Health Networks Inc.

Braly said WellPoint would prefer to purchase Blue Cross plans -- it is a Blue Cross or Blue Cross Blue Shield licensee in 14 states -- but since there aren't any for-profit options available it would examine various opportunities. She also noted WellPoint would explore ways to partner with the nonprofit Blue plans such as joining back office operations as a way to save money.

WellPoint's acquisition interests transcend not only just health plans but also include other related company such as those that sell dental, vision or life insurance, Braly said.

Two years ago, WellPoint purchased Lumenos, a company that specializes consumer-directed plans, products that combine high deductibles with a pool of money to help consumers pay for health expenses. Some experts believe that if consumers have more of their own money at risk, they'll make better health care choices that will ultimately bring down costs.

Braly said that creating affordable health care plans is a challenge for all insurers and that consumer directed plans are one way to create value.

'I think we have to maintain a focus on the consumer,' Braly said. But she added that insurers must continue to add ways for consumers to learn about the cost and quality of the hospitals and doctors involved in their care so they can make good choices.

Braly, a 45-year-old mother of three, will assume the top spot in June when Larry Glasscock retires. He will remain Wellpoint's chairman.

Some Wall Street analysts were surprised at Braly's appointment, with a few expressing concern that other executives that weren't tapped for the post might leave-- most notably WellPoint CFO David C. Colby. Braly, who is currently WellPoint's executive vice president, general counsel and chief public affairs officer, said she expects the speculation about Colby's future to blow over soon.

'He's been very supportive...We are a team,' said Braly, who was in New York to meet Wall Street analysts. 'We are focused on competing effectively in the market.'

WellPoint shares rose $1.49 or almost 2 percent, to close at $79.39 on the New York Stock Exchange.