Health benefits company WellPoint, Inc. (WLP) is planning to change its corporate name to Anthem, Inc. in order to promote a consumer-oriented identity that is focused on individual consumers, according to a Wall Street Journal report of Tuesday. The change is expected to take effect towards the end of 2014 after a shareholder vote.
Anthem is the brand name used for almost all of WellPoint's health-insurance products that target individuals rather than commercial businesses, which include business owners and executives. WellPoint currently runs Anthem and Empire Blue Cross Blue Shield Plans.
Indianapolis, Indiana-based second-biggest U.S. insurer reportedly said "the change would help create alignment between its corporate identity and product brands."
WellPoint was formed when WellPoint Health Networks Inc. and Anthem, Inc. merged in December 2004 in a $16.5 billion deal to become the nation's leading health benefits company. The corporate parent was then renamed WellPoint, Inc. The new plan for a name change will reverse the decision made in 2004.
The move to change name reportedly comes after the new federal health law, which created insurance marketplaces in each state. The next enrollment period for the Patient Protection and Affordable Care Act known as Obamacare begins on November 15.
ObamaCare's goal is to give more Americans access to affordable, quality health insurance, and to reduce the growth in health care spending in the U.S. ObamaCare does not replace private insurance, Medicare, or Medicaid.
However, ObamaCare will expand the affordability, quality, and availability of private and public health insurance through consumer protections, regulations, subsidies, taxes, insurance exchanges, and other reforms.
President Barack Obama signed the Affordable Care Act. on March 23, 2010, which puts in place comprehensive health insurance reforms that was projected then to roll out over four years and beyond.
WLP closed Tuesday's regular trading session at $108.66, up $1.27 or 1.18% on a volume of 1.62 million shares.
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