WellPoint CEO Joseph Swedish explains the strategy behind Anthem's new joint venture with seven Southern California health systems, which will share risk as an integrated network with a no-deductible, low-cost plan. The model is one of many experiments WellPoint is rolling out across the U.S. as the industry moves rapidly to value-based payment models. Will the model introduced in Los Angeles work elsewhere? "Maybe," Swedish says. "Would some variation on the theme work elsewhere? Probably."

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