The nation’s largest health insurance company, Indianapolis-based WellPoint, says cutting 1,500 jobs is the best way to streamline its staff of 42,000. It means eliminating 900 open positions and laying off 600 workers.
The cuts are expected in the 14 states where WellPoint manages Blue Cross plans. WellPoint says staff working on those compliance issues will not be affected.
The job cuts will cost WellPoint $24 million in Q4 earnings.
This week a federal agency stopped the company from enrolling new patients in it’s Medicare Advantage and prescription drug plan – Medicare Part D – because of an increase in complaints.
WellPoint is the largest member of the BlueCross BlueShield Association. It was formed when WellPoint Health Networks merged into Anthem in 2004.Wellpoint: 600 Laid Off, Plus 900 Open Positions Eliminated by Harrison Barnes