WellPoint Cuts Workers' Health Insurance Benefits

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.

 

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Comments

[kaferbug]

09:09 AM on 12/05/2009

As a Wellpoint employee, I can attest to their deplorable practices. We constantly receive propaganda email (which comes as Spam LOL) encouraging us to fight healthcare reform. At the same time, our benefits were cut because our client base has decreased. Suppose that might be due to the incredibly high premiums? In keeping with the season (Scrooge) they have eliminated the holiday lunch, restricted the manner in which we can decorate our cubicles, and are eliminating positions left and right. The company motto: improving the lives of the people we serve and the health of our communities. But only if we can make a profit. It has absolutely nothing to do with meeting member needs and everything to do with the bottom line. Afraid of government death panels? Try Wellpoint!

[ederlore]

05:22 PM on 10/09/2009

Opps, I ment to say "conservatives are NOT famous for looking at the facts. Darn, I wish HuffPo had an edit. Guess I better start using the preview button!

[Philclock]

03:38 AM on 10/09/2009

Open up the health care market to real competition for insurance companies, better policies, better pricing, better servicing.

"Private" insurance is so heavily mandated and controlled by the government that, at best, it's "quasi-private" or socialist light, to wit:

- private insurance companies aren't allowed to operate nationally; each state by law picks and chooses just a few, creating insurance mini-monopolies (eg, only 6 companies allowed to write policies in all of California);
- private insurance companies cannot write the policies they want; eg government mandates that each policy cover basic services, which prevents inexpensive long-term care only for catastrophes (such as cancer, heart attacks, kidneystones - I've had 3!);
- private insurance companies cannot compete with the 1/3 share of the healthcare market that Medicare, with all its fraud, overpaying suppliers and underpaying doctors, monopolizes.

Medicare is a monstrosity, it's broke in 8 yrs according to its trustees, and is typical of government getting away from its primary role of regulating, and trying to run the show (social security, AMTRAK, public education, post office).

Most everyone CAN be covered, open up competition, make it easy to buy in, subsidize the needy, unleash the insurance companies and let 'em compete, have them pool for high-risk policies (eg pre-existing conditions, which are a requirement).

In other words, put the power of health care in the hands of we customers, and out of Big Government and Big Insurance (which as I said is today a creature of Big Government).

[jalaroc]

12:35 PM on 02/02/2010

Credit card companies operate nationally yet pick the state they are based in to gouge their customers for the highest interest rates possible and as little consumer protection as possible. There is a real and justified fear that insurance companies would do the same if allowed to operate in the same manner. If health insurance companies were to be obligated to follow state laws, I see no reason to stop them. However, as soon as they started going national, they would claim that federal regulations (practically nil thanks to bush) preempted state guidelines.

Got news for ya, sport. Long term care isn't cheap. your paragraph makes no sense at all. Let's face it, if insurance companies wrote the policies they wanted, there would be no payouts on medical treatments.

Again, are you saying that medicare is more efficient and serves consumers better than private insurers? knowing someone who works in a hospital, it's not just medicare that doesn't pay much, private insurers really put limits on how long a person can stay in the hospital. Some insurers won't pay for more than 3 days in a hospital after giving birth. Ever tell a new mother who still has stitches down there that she has to leave because her insurance won't pay anymore? Or telling someone that insurance won't pay for their treatment? Stop painting medicare as the bad guy. At least it's there to help people, not make money.

[MyLIberalKos]

12:18 PM on 10/07/2009

Everything but the little people have become too big to fail.

Everyday we pay the consequences of Reaganomics and neoconservative economics

good articles; http://iamned1.blogspot.com

80's: Arthur Laffer, MIlton Freidman, Greenspan, Alexander M. Haig, Jr, Donald T. Regan, James A. Baker 3rd,
Later: Robert Rubin, Bernanke, Paulson

[land2341]

09:26 AM on 10/07/2009

I really, really need a perp walk!!!

When the norms at the very top and the norms at the bottom don't match for too long you get an unstable society. When the laws are applied differentially for too long you get an unstable society. When the income gap gets too large you get an unstable society.

Well we're three for three - anybody watching???

[Strega]

07:28 PM on 10/06/2009

This is what happens when you think you can trust your health insurance company. They're exactly like other types of insurance - if you get into a car accident, your insurance goes up & you may be dropped; if homeowners make a claim on their house insurance, they get dropped; if you want decent health insurance, you pay a whole lot and if they ever have to pay a whole lot for you, watch how they first try their best to avoid paying, and then raise rates or drop you totally. Wake Up America - Health Insurance Companies are NOT your friends!

[AvangionQ]

03:17 PM on 10/06/2009

If an insurance company such as WellPoint doesn't even care about its own employees and is cutting their health benefits, how is that not a sign of unrestrained greed being manifest and how does that *not* show a lack of responsibility for those under their care ... is it no wonder that people want a better option than `soulless vampires making money off human pain`?

[Strega]

07:28 PM on 10/06/2009

It is indeed unrestrained greed!

[Americanwhiner]

03:08 PM on 10/06/2009

Just too perfect. The sooner the America's "insured" realize that their health insurance is a scam, the better. Because their skyrocketing premiums are handled by their employers' payroll department, they are ignorant of how imperiled their health care has become. To pay for the 2 million dollars per day insurance companies are shelling out to fight regulation, they will enjoy no pay raises, no match for their 401k's, higher out-of-pocket deductibles, and higher, tougher roadblocks when they get sick and need to collect on their benefits. Perfect timing. Maybe if the population starts WAKING UP, and realize the imbalance of power due to outrageous corporate influence will be hitting them square in the face NEXT, something will get done sooner than (too) later. Sad, but fitting, that the employees of the insurance monster are finally the next fatted calves to be killed. Next up: Retiree Packages.

[JoshPr]

12:42 PM on 10/06/2009

I predict there will be no reform or change and Obammi will discourage his followers, hence losing 2012. Dems will also lose a lot of seats in the house in 2010.

good articles; http://iamned2.blogspot.com

Obama= fail

[SpikeC]

09:50 PM on 10/06/2009

Blah blah blah blah blah. Living in a fantasy land, lah dee dah dee de dah...................

[JoshPr]

12:42 PM on 10/06/2009

yea same old

[LeLoup]

12:11 PM on 10/06/2009

Gee! A twofer on WellPoint today! What a treat!

Wellpoint: "The company blamed the recession for the cuts."

Couple of questions to dear Angela and other suits in the corner office: Does that mean you guys are going to take a pay cut too? How about your profit margins that Wall Street can't stop obsessing about; will they decrease to reflect how bad this recession is?

No to both question, right?

Quelle surprise!

[doublels]

08:56 AM on 10/06/2009

Infuriating but not surprising. A family member of mine worked for Blue Cross. When she started they paid 100% of her premiums. Over the last 10 years, they kept lowering that percentage down to 35%.

I work in a hospital that I do really like the job & administration. We were recently asked to step up and participate in projects for improving the hospital. The next day came raises...1%. Personally, I can live with it but in general, you can't expect people to be supportive of the ''effort'' of the organization and not be compensated enough to move with the economy.

We are all, except for the uber rich, losing ground here.

[alexdog]

10:47 AM on 10/06/2009

Wow then count yourself lucky. Hospital are scrambling for ways to cut costs and maintain level of patient care.

[SpikeC]

09:47 PM on 10/06/2009

And yet they keep growing profits...........................

[vonPinto]

08:29 AM on 10/06/2009

America, I am having a headache.

I need some help understanding why this great nation with great people should allow the big corporations work with the folks we "thought" we elected to represent us use the ordinary citizens to work against the rest of us.

[barriosbabe]

08:58 AM on 10/06/2009

The AP is running a huge story you know detailed analysis of how the recent Baucus amendments help this or that sector of big dru g and big health.

They never mention the American people!

[userw014]

09:17 AM on 10/06/2009

Fear and The Big Lie.

Even before the Great Recession, corporations ruled people's lives through fear of loosing a job or an opportunity to advance. Stir in the fear of loosing your job, your health care, your home, your retirement - and the people who who work there live in a permanent state of fear.

Think of what it means when your manager lives in constant fear. That kind of stuff flows downhill and permeates the corporate culture. Managers become bullies to supervisors. Supervisors become bullies to employees. Fear begets fear.

[sueinmn]

03:17 PM on 10/06/2009

What you describe is Marxism. And they all accuse Obama of socialism, communism, etc. We already have what hes been accused of. Change needs to come and fast!

[morgan1]

07:23 AM on 10/06/2009

This is another example out of thousands where the corporation lies to their employees and then rewards them for their loyalty by firing/outsourcing/part-timing and harassment while the top man (Seldom a woman) takes millions home in benefits and bonuses.

[vonPinto]

08:38 AM on 10/06/2009

Funnily enough, these same employees have been instrumental in documentation, "analyzing" and pushing the files of the millions of Americans that were denied health care.

While I will not rejoice about what happened to them, I can always remind them that "you should be careful about those you stepped on their heads while going up the ladder because you will definitely need those heads to break your fall on your way down the same ladder".

I will like to hear their testimonies about what it feels like losing your health coverage or having your premium raised beyond your affordability".

[HotRNDee]

06:28 AM on 10/06/2009

This is just another example of big business ruling the world and how greedy all insurance companies and hospitals are,,,,,blah,,blah,,,blan,,,yadda yadda...yadda