WELLPOINT TO BUY GROUP LIFE\$380 million acquisition first step in firm's national expansion\plans.Byline: Dawn Yoshitake Daily News Staff Writer WellPoint Noun 1. wellpoint - a perforated tube driven into the ground to collect water from the surrounding area well point tube, tubing - conduit consisting of a long hollow object (usually cylindrical) used to hold and conduct objects or liquids or gases Health Networks Inc. agreed Monday to acquire the life and health insurance unit of Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Mutual Insurance Co. for about $380 million. The action provides a boost to WellPoint's nationwide expansion plans in light of its failed merger with Health Systems International Inc., officials said. "This is the first step in our national strategy," said Leonard Schaeffer, WellPoint chairman and chief executive. "This will reinforce our presence in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and move us out of state." WellPoint and Health Systems, both Woodland Hills-based, had hoped to launch an aggressive nationwide expansion of their managed health care business. But merger talks came to a halt last month after top executives of both companies fought for control over the new company. Massachusetts Mutual's Group Life and Health is expected to increase WellPoint's membership 36 percent to nearly 4 million members and boost its annual revenues to nearly $4 billion, up 39 percent, said John Cygul, a WellPoint spokesman. The acquisition, expected to close by April pending regulatory approval, will create the second largest publicly traded managed health care company in the nation behind United Healthcare Corp, the company said. The acquisition of Group Life, based in Springfield, Mass., also will increase WellPoint's ability to offer more services and indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. products - which WellPoint hopes will attract large corporate customers looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. one-stop health care shopping, Schaeffer said. "It's an opportunity to broaden the product line across the country and then strategically use it as a platform to form joint-ventures with other Blue (Cross and Shield) plans," he said. Massachusetts Mutual is selling Group Selling Group All financial institutions involved in selling or marketing a new issue of debt or equity but not necessarily participating in the underwriting consortium. Notes: Life as part of its strategic plan to concentrate on insurance protection and money management for individuals and institutions, said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Wheeler, Massachusetts Mutual chief executive, in a statement. Under the deal, WellPoint will increase the number of its dental members by 50 percent to 1.5 million, and more than double the number of its life and disability insurance members to 1 million. WellPoint will absorb Group Life's 1,800 employees, but they will remain at the Springfield headquarters where the national business will operate or will be added to WellPoint's provider networks, Schaeffer said. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion