HealthMax to Buy Humana’s HMO California

Humana Inc. will sell its HMO California business to HealthMax Inc. as part of its drive to jettison units that don’t have significant market share. HMO California, which operates in four Southern California counties, has fewer than 10,000 members and represents a small portion of Humana’s California business, the company said. Terms of the sale to closely held HealthMax weren’t disclosed. The agreement is subject to state regulatory approval. Louisville, Ky.-based Humana will continue to offer other forms of health insurance in California. It will continue to administrate HMO California for six months after closing of the sale. Shares of Humana rose 25 cents to close at $23.50 on the NYSE. . . . Healtheon Corp. said it appointed former CSC Continuum Chief Executive Mike Long as president and CEO. Long succeeds David Schnell, Healtheon’s acting president and CEO. Healtheon was founded in June 1996 by Netscape Communications Corp. Chairman James Clark, Schnell and Pavan Nigam, Healtheon vice president of engineering. Closely held Palo Alto-based Healtheon makes computer systems to manage health benefits over the Internet.