WellPoint Anxious For Clarity

As the nation's largest health insurer,WellPoint is anxious to get certainty about health care reform and economic recovery.It does appear that we've hit the floor at this point,according to Chief Financial Officer Wayne S. DeVeydt,and we might see improvement in the next quarter.The 14% increase in WellPoint's premiums in California is not sustainable,however.They've got to get the care costs down.The key is avoiding duplicate procedures.
The health care reform law is weighing on WellPoint's stock.They have to get better clarity about it soon.Nonetheless,the firm's net headcount isn't dropping.It employs about 42,000 Associates.
Based in Indianapolis,WellPoint operates as a licensee of the Blue Cross and Blue Shield Association in 14 states,with 33.5 million members.It has been honored by Fortune magazine as a Most Admired Company in its field for 2007,and has also received a workplace diversity award.Its earnings per share were up for Q2,and it raised its full year guidance as well.WellPoint buys back billions of dollars worth of shares to support its stock.Angela F. Braly is President,Chair and CEO of the insurer.
WellPoint(WLP)

Health Care Reform:The Blues React

Scott Serota,President and CEO of the Blue Cross and Blue Shield Association,a trade group representing 39 independent,community-based and locally operated health insurers,says they're gonna work very hard to make sure these laws do what they're supposed to do.Provisions of the bill are inflationary,so they're gonna have to find new and more innovative ways to make health care more affordable.Health insurance is a very low margin business.They're gonna have to pass some of the new expense on to consumers.
A health insurance company's profits are very small.A blue plan's profits are only 1.5-2%.It's a very low margin business.They need to focus on health care cost containment over the next 2-3 years to ameliorate the increase in premiums,Mr.Serota believes.
The BCBSA has an 80 year history.Based in Chicago,its member plans insure about 100 million Americans,or one in three.It is the oldest and largest family of health insurers.Wellpoint owns several of the plans.

Wellpoint Enrollment Down

Feeling the impact of the financial crisis,health insurer Wellpoint's enrollment was 34.6 million at the end of Q1-down 2.3% as companies cut health benefits for their employees.CEO Angela Braly says we're just now getting into the health care discussion.We know the Obama administration has been very interested in listening.Of those who are uninsured,25% are eligible for government programs;25% can afford their own insurance;we need a bridge for the rest,so they can get the coverage they need,Ms.Braly believes.Wellpoint is America's largest private health insurer,covering one in nine citizens through its Blue Cross plans.It is a holding of Warren Buffett's Berkshire Hathaway.

Wellpoint Is Ready

Health insurer Wellpoint(WLP) is ready for whatever the U.S. presidential election brings.CEO Angela Braly says the firm will work with either candidate.With 35 million members in its 14 Blue Cross plans,served by more than 42,000 employees,Wellpoint is the largest U.S. health insurer.Founded in 1944,the Indianapolis company is known for its stock buybacks in support of the share price.Wellpoint is a holding of billionaire Warren Buffett's Berkshire Hathaway.