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WellPoint Says It Will Cut 1,500 Jobs
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| Copyright: | The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. | | Source: | AP Online | | Wordcount: | 216 |
NEW YORK_Health insurer WellPoint Inc. said Friday it will cut about 1,500 jobs to reduce costs as it copes with the U.S. recession.
The Indianapolis-based insurer will eliminate about 3.5 percent of its staff, which currently totals more than 42,000. More than 900 open positions and 600 associate jobs are being eliminated.
Rising unemployment is affecting health insurers because their employer customers have fewer workers to cover.
WellPoint did not estimate how much it will save from the job cuts but said it will take a one-time charge of $24 million in the fourth quarter.
WellPoint says its Medicare Advantage and Medicare Part D compliance staff are not affected by the move. The Centers for Medicare and Medicare Services on Monday barred the company from enrolling new patients in both those programs because of growing complaints that members were not receiving prescription drugs.
WellPoint is the largest U.S. health insurer based on membership. It runs Blue Cross and Blue Shield plans in 14 states.
Other health insurers also have been cutting jobs. Philadelphia-based Cigna Corp. said earlier this month it would cut 1,100 jobs, and Hartford, Conn.-based Aetna Inc. said last month it would cut 1,000 jobs.
Minnetonka, Minn.-based UnitedHealth announced plans to cut 4,000 jobs last July.
WellPoint will report its fourth-quarter results Jan. 28.
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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