WellPoint Health Slashes Rates for HMO

WellPoint Health Networks Inc., a Woodland Hills-based for-profit subsidiary of Blue Cross of California, announced premium reductions averaging 20% for its CaliforniaCare health maintenance organization.

The premium reductions are for CaliforniaCare’s managed individual and family health care plans (Personal CaliforniaCare). The rate decrease is effective retroactively for all new applicants as of June 1. Members in Los Angeles and Orange counties will see reductions as high as 25%, the company said.

CaliforniaCare, which has an enrollment of more than 500,000 members, said the new lower rates reflect negotiated agreements with existing HMO doctors and hospitals for new customers.

Separately, WellPoint said it has appointed Thomas C. Geiser as senior vice president and general counsel. Geiser, 42, has 15 years of experience in health-care law practice, including state and federal regulatory issues, corporate and antitrust matters.