Largest U.S. health insurer sees profit rise 51%
Friday, April 30, 2010
Bloomberg BusinessWeek: WellPoint, which provides health insurance to more Americans than any other company, reported its profit increased 51% in the first quarter of this year compared to the same period last year. At the same time the percentage of premiums that was spent on medical care (as opposed to administration or profit) went down, even though it shifted the classification of some expenses from administrative to medical care. In an apparently unrelated development, WellPoint’s Anthem Blue Cross canceled planned rate increases of as much as 39% for some California policyholders after the state Department of Insurance found “numerous and substantial errors” of math in Anthem’s rate increase application.