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New HMO plan wants to keep prices low, make money, and take on Kaiser. Is it possible?

A pedestrain crosses a street at Cedars-Sinai Medical Center in Los Angeles on September 7, 2012 in California.
A pedestrain crosses a street at Cedars-Sinai Medical Center in Los Angeles on September 7, 2012 in California.
(
FREDERIC J. BROWN/AFP/Getty Images
)
Listen 17:14
New HMO plan wants to keep prices low, make money, and take on Kaiser. Is it possible?

Anthem Blue Cross is teaming up with Cedars-Sinai Medical Center, the UCLA Health System along with several other high-profile hospitals to create a new health plan in Southern California. The plan, called Vivity, has its first major customer in the form of pension fund CALPERS, which is also the nation’s second-largest healthcare buyer.

MemorialCare Health System, Good Samaritan Hospital, Huntington Memorial Hospital, Torrance Memorial Medical Center and PIH Health are also part of the new joint venture. All participating hospitals’ facilities and doctors also fall under the plan.

The Vivity plan, according to the Los Angeles Times, will be about 10% cheaper than Kaiser’s HMO plan. It promises no deductibles and low co-payments and high quality of service for patients in trying to take on industry leader Kaiser. Can it be done?

Guest:

Steve Valentine, president of The Camden Group, a healthcare consulting firm based in Los Angeles with offices all over the country

Betsy Imholz, Special Projects Director, Consumer Reports