WellPoint Inc. - Steven Wevodau

Anthem’s parent cutting 1,500 jobs

Posted by Steven Wevodau

WellPoint mum on Kentucky number

By Patrick Howington
phowington@courier-journal.com

WellPoint, the Indianapolis-based parent of Anthem Blue Cross and Blue Shield in Kentucky, is eliminating about 1,500 jobs — 3.5 percent of its work force — including about 600 by layoffs, to cut costs.

The company would not say how many jobs might be affected in Kentucky or other markets. More than 1,000 Anthem employees work at the company’s office building in Louisville’s Eastpoint Business Center.

“With the current state of the economy we made the difficult decision to adjust the size of our work force,” WellPoint Chief Executive Angela Braly said in a statement.

In addition to the 600 layoffs, WellPoint won’t fill more than 900 open positions. The company has about 42,000 employees.

WellPoint did not say how much it will save from the job cuts but said it will take an after-tax charge of $24 million against its fourth-quarter earnings, which it will report Jan. 28.

Other health insurers have cut jobs recently as layoffs by their employer customers reduce the number of people covered by health insurance.

Cigna said earlier this month that it would cut about 1,100 jobs, and last month Aetna announced plans to eliminate 1,000 jobs.

Anthem is Kentucky’s largest health insurer, and WellPoint is the nation’s largest based on membership of more than 35 million. It operates Blue Cross and Blue Shield plans in 14 states, including Indiana.

WellPoint shares gained 4 cents yesterday to close at $37.89.

Reporter Patrick Howington can be reached at (502) 582-4229.

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WellPoint investments lost $349M last quarter - Steven Wevodau

IBJ Staff
Indianapolis-based WellPoint Inc. lost an estimated $349 million on its investments during the last three months of 2008, the company said in a regulatory filing today.

 

That comes on top of a loss of $562.6 million reported for the third quarter. More than half of that was attributed to investments in failed investment bank Lehman Brothers and Fannie Mae and Freddie Mac, mortgage companies seized by the federal government.

 

The loss likely will affect fourth-quarter profit, but company officials cannot disclose details before complete financial results are released Jan. 28.

 

The operator of Blue Cross health plans said net income rose to $820.7 million in the third quarter, compared with $868 million in the same period last year. Revenue fell 1.8 percent to $14.96 billion.

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Monday, January 12th, 2009 Steve Wevodau - Accident & Health, WellPoint Inc. - Steven Wevodau Comments Off