Anthem Blue Cross announced a joint venture with hospitals to offer employers a new health maintenance organization in the Southern California market.
Anthem, based in Thousand Oaks, will join with seven hospital systems, their affiliated clinics and doctor groups to provide health care. The plan, called Vivity, includes UCLA Health System, which has clinics in the greater Valley region. Members of Vivity will have a co-pay for care, but they won’t have to worry about deductibles or medical bills.
“This innovative venture will create a foundation to significantly advance the medical delivery system, simplifying the care experience and creating a structure with aligned incentives to eliminate waste and redundancy,” Pam Kehaly, west region president for Anthem Blue Cross, said in a statement.
The system will compete with Kaiser Permanente, the dominant HMO in the California market. CalPERS, the state public employees union and the second-largest purchaser of health benefits in the country, has signed on to use Vivity. Coverage begins Jan. 1.
“Vivity will create economies of scale, allowing us to provide the highest quality and affordable health care to thousands of Californians,” Dr. David Feinberg, president of the UCLA Health System, said in a statement.
Anthem is a unit of WellPoint Inc. in Indianapolis.