In a separate story, the Journal reports on the ongoing changes at Health Management Associates.
The Wall Street Journal: WellPoint Helps Cut Employers' Health Cost
As companies seek ways to curb health-care spending, insurer WellPoint Inc. is rolling out a program that lets employers pay only a set amount for a medical service, asking workers who select costlier care to pay the difference. The idea has been tested for years by a limited number of large employers. But the new option from the second-biggest U.S. insurer, which will be available for coverage that kicks off next January, will be offered broadly to any client with at least 100 employees (Mathews, 6/25).
The Wall Street Journal: Glenview Seeks Board Overhaul At Health Management
Glenview's growing activist role at Health Management—in which the investor has amassed a 14.6% stake, making it the largest shareholder—has fueled Wall Street expectations that Health Management could be sold. Health Management shares were down slightly to $15.31 in midday trading Tuesday, but they have soared nearly 39% since the company adopted a shareholder-rights plan in response to Glenview's share accumulation. New York-based Glenview has said it has no intentions to acquire Health Management, and in a long letter to shareholders Tuesday, said that it didn't know whether it is best to sell the company or "change management and build long-term independent value." But the investor did call a potential acquisition by a larger chain "compelling," and said a new board is needed to review such options (Kamp, 6/25).