WellPoint health insurance company, which has encouraged its employees to lobby against health care reform, is now cutting their benefits. The insurance giant plans to raise deductibles and premiums for some of its employee health benefits. "Your cost per paycheck will probably increase," said a memo to Wellpoint employees that was obtained by Bloomberg News.
The company blamed the recession for the cuts. "Like many employers in today's economic environment, we are looking at all aspects of our business," including benefits, "and making adjustments to ensure we can continue to operate competitively in the future," wrote Chief Human Resources Officer Randy Brown.
WellPoint's CEO, Angela Braly, made nearly $10 million in 2008.
WellPoint illegally pressured California employees this summer to fight health care reform, according to Consumer Watchdog. "Regrettably, the congressional legislation, as currently passed by four of the five key committees in Congress, does not meet our definition of responsible and sustainable reform," said the company's Anthem Blue Cross unit in a company e-mail. The proposals would hurt the company by "causing tens of millions of Americans to lose their private coverage and end up in a government-run plan."
A House investigation found that WellPoint also rewarded employees for finding ways to drop policyholders who developed expensive conditions -- a practice known as rescission.
Read more at:
http://www.huffingtonpost.com/2009/10/05/wellpoint-cuts-workers-he_n_309716.html WellPoint cuts workers health benefits INDIANAPOLIS - WellPoint Inc., the largest U.S. insurer, dismissed a "small number" of workers last week and announced cuts to employee health benefits Friday, in its latest attempt to deal with the recession's toll on enrollment.
WellPoint eliminated the positions last week and expects to let more go before year's end, though the number will be "relatively small," Kristin Binns, a spokeswoman, said in a telephone interview. The company will also raise deductibles and premiums for some of its employee health benefits, the Indianapolis-based insurer told workers in a memo obtained by Bloomberg.
In the memo from Randy Brown, WellPoint's chief human resources officer, the company said it would lower its contribution toward worker premiums and raise deductibles in two of its three benefit plans. "Your cost per paycheck will probably increase," the memo said.
WellPoint has 42,000 employees, including hundreds in East Walnut Hills, Mason and West Chester.
WellPoint, like its competitors, has seen health plan enrollment shrink this year as employers cut jobs and benefits amid the recession. Chief Executive Officer Angela Braly cut 1,500 positions in January, and last week the company said it was reviewing its "size and skills" to improve efficiency.
The job cuts are "really just an ongoing effort for us to cut costs and run more efficiently," Binns said, calling the changes "economy-driven."
The insurer also capped the number of paid days off workers can bank for future use at 23 days. Previously, workers with more than 10 years service could accrue more, the memo said.
"Like many employers in today's economic environment, we are looking at all aspects of our business," including benefits, "and making adjustments to ensure we can continue to operate competitively in the future," Brown wrote.
WellPoint covers 82 percent of its workers' health costs, above the national average, Binns said. The plans also offer wellness and preventive care at no cost, as well as lower deductibles if workers undergo health assessments or join a "health coaching" program.
WellPoint is the largest U.S. health insurer based on enrollment in its medical plans. UnitedHealth Group Inc., based in Minnetonka, Minn., is the largest based on sales.
http://news.cincinnati.com/article/20091003/BIZ/910030367/WellPoint+cuts+workers+health+benefits
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
