WellPoint Cuts Workers’ Health Insurance Benefits

Published on

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 Brady, 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.

Consumer Watchdog
Consumer Watchdoghttps://consumerwatchdog.org
Providing an effective voice for American consumers in an era when special interests dominate public discourse, government and politics. Non-partisan.

Latest Videos

Latest Releases

In The News

Latest Report

Support Consumer Watchdog

Subscribe to our newsletter

To be updated with all the latest news, press releases and special reports.

More Releases