Wellpoint to Focus on Wellness (WLP, AET, HUM, CI)
Health insurer Wellpoint Inc. (NYSE: WLP) is changing its fee schedule for primary care physicians. Like other insurers Aetna Inc. (NYSE: AET), Humana Inc. (NYSE: HUM), and Cigna Inc. (NYSE: CI), Wellpoint’s share price has been falling as costs have…
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Health insurer Wellpoint Inc. (NYSE: WLP) is changing its fee schedule for primary care physicians. Like other insurers Aetna Inc. (NYSE: AET), Humana Inc. (NYSE: HUM), and Cigna Inc. (NYSE: CI), Wellpoint’s share price has been falling as costs have eaten into profits.
The new approach from Wellpoint will boost payments by about 10% to primary care physicians in an effort to avoid the costlier surgeries and emergency room visits that occur when patients avoid routine visits and check-ups. The Wall Street Journal notes that payments to primary care doctors could rise by 50% in certain circumstances.
Wellpoint reported weak fourth quarter earnings and offered a weak outlook on Wednesday, sending shares plummeting by about -7%. Shares closed yesterday at $64.30 in a 52-week range of $56.61-$81.92.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
