American Medical News
September 3, 2001
“At a time when many managed care companies are losing money and rethinking capitation, health care analysts point to WellPoint Health Networks as the industry leader that has broken from the pack. WellPoint, analysts say, stands out from the crowd because it consistently makes a profit and is well ahead of the curve in providing the flexibility and choice that consumers want from their health plans.”
“WellPoint, which focuses on the small- and mid-size employer market, is able to price its products to make a profit, while avoiding alienating employers with steep premium increases, France said. It does that by fine-tuning health plans — raising co-payments or deductibles and adjusting benefits.”
Joe France, an analyst with Credit Suisse First Boston:
“They are very forward looking. Leonard Schaeffer (WellPoint CEO) is the single most respected executive in the industry.”
Comment: Forward looking – smaller benefit package, and higher out-of-pocket expenses. And price the product to compete within the employer’s panel of defined contribution plans. With WellPoint leading the way, working families will soon be faced with health care cost sharing that will consume all of their disposable income. It has been said repeatedly that we cannot have health care reform until the average American is hurting. Well, they’ll be hurting real soon.