Aetna executive Pam Kehaly will lead Anthem Blue Cross subsidiary in Calfornia after Leslie Margolin resigned. Health insurer WellPoint Inc. has made the choice and Kehaly’s aim would be group health insurance, which people typically receive through their employers.

WellPoint said on Monday evening that on August 30 Kehaly will take over as president and general manager of the subsidiary.

Margolin while leaving had stated that she was leaving state's largest for-profit insurer.

President Obama's administration and others earlier this year had criticized WellPoint's California subsidiary for plans to raise rates for its individual business by an average of 25 per cent and as much as 39 per cent for some customers.

But since the criticism came its way, there was a tone down seen reaching 14 per cent with a cap of 20 per cent.

According to WellPoint, the main reasons for it pushing up its premiums were unemployment and rising medical costs. This year a loss of $100 million is expected.

Company spokeswoman Kristin Binns said, “Last week Margolin's resignation was not connected to the strife over individual rates. Rates are determined through a collaborative process which is led by president and CEO Brian Sassi and Kehay will have no say.”