WellPoint undergoes management shakeup under interim CEO

WellPoint's interim chief executive is making some major changes to the second largest health insurer by reorganizing the company into four business units.

Hoping to aid the incorporation of Amerigroup, which WellPoint purchased for $4.9 billion, and better align the company's business functions with the changing healthcare environment, Interim CEO John Cannon is creating four separate divisions--Medicare, Medicaid, commercial and individual plans, and specialty plans, Bloomberg reported.

"Because Amerigroup is a key aspect of our strategic growth plans, it is prudent to evaluate and modify our organizational structure so that we are best positioned to take advantage of the tremendous growth opportunities that lie ahead," WellPoint Spokesperson Jill Becher said in an emailed statement to FierceHealthPayer. "We have the right strategy and the right people in place to ensure that WellPoint will continue to be the most trusted choice for health care consumers."

Amerigroup CEO James Carlson will lead the Medicaid unit, Leeba Lessin is charged with running the Medicare unit, Kenneth Goulet will head up the commercial and individual business division, and Lori Beer will take the helm of the specialty unit, which includes dental, vision and disability coverage.

"Each business unit will be provided the resources, decision-making authority and direct control over matters that are critical to its success," Cannon wrote in a memo to employees obtained by Bloomberg.

The move represents the first major change since former CEO Angela Braly resigned in August amid shareholder accusations of leadership failure and "management missteps," FierceHealthPayer previously reported.

To learn more:
- read the Bloomberg article