WellPoint Reports Drop in Q4 Profit; Cites Calif. Plan Loss
On Wednesday, health insurer WellPoint -- the parent company of Anthem Blue Cross in California -- announced that it earned $335.3 million in the fourth quarter of 2011, a 39% decline from the $548.8 million in earned during the final quarter of 2010. The company attributed the drop to a $50 million loss in the quarter through a Northern California plan that drew more customers with higher risk profiles who generated more in claims than the premiums they paid. The plan was discontinued on Jan. 1.
- "Insurer WellPoint's 4Q Profit Drops 39 Percent" (Murphy, AP/Sacramento Bee, 1/25).