WELLPOINT-HANCOCK DEAL COULD BE NEXT.Byline: Daily News Staff and Wire Services Boston-based John Hancock Mutual Life Insurance Co. wouldn't would·n't Contraction of would not. wouldn't would not wouldn't would deny a report Wednesday Wednesday: see week. that it might sell its health insurance business to 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 of Woodland Hills. Hancock spokesman Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. Carmichael declined comment but would not deny a sale might be forthcoming. Wellpoint spokeswoman Cynthia Coulter also declined comment. But Wellpoint has said in the past that it plans to expand outside of 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 is in an acquisition mode. In April, Wellpoint acquired the health insurance unit of Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Mutual Life Insurance Co. for about $380 million in cash.
Other life insurers, including New York-based Metropolitan Life
Insurance Co. and Travelers Group Inc., have sold their health insurance
units to focus on their life insurance business.
News of a possible deal surfaced one day after two big California managed care providers - Foundation Health Corp. and Woodland Hills-based Health Systems International Inc. - announced their $3 billion merger. More deals are likely on the horizon, says analyst Ken Sawyer in the mergers and acquisition group at Volpe Welty & Co. ``There have been HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, mergers for many years and we see this continuing in the managed care environment,'' Sawyer said. ``What's driving it is the desire to deliver higher quality service at a lower cost.'' Wellpoint investors said expansion is key for the company's success. ``Growth seems to be the trend,'' for health care companies, said Chip Reed, portfolio manager at the $57 billion Florida State Board of Administration. It owns a stake in Wellpoint. In May, Wellpoint approved a merger with its biggest shareholder, Blue Cross of California. One of the largest managed care providers in the nation, Wellpoint has more than 2.8 million people enrolled. It employs 2,400 and posted earnings of $217.1 million 1995. John Hancock, a much smaller player in the market, has a contract to cover 67,000 Massachusetts state employees, representing a substantial piece of its business. The health insurance unit has about 3,200 workers and contributed $10 million in income to its parent company last year. In another Wellpoint development Wednesday, Chief Financial Officer Yon Y. Jorden said she would leave the company at the end of the year because of personal reasons. Jorden, who has been at Wellpoint for six years, will provide consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" in 1997. Company Chairman Leonard Schaeffer said she played a key role in the company's growth, including its initial public offering in 1993. |
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