Health insurer WellPoint May Cut Jobs and more

INDIANAPOLIS_Health insurer WellPoint said Tuesday it may trim some more jobs as part of a push to become more efficient next year.

The Indianapolis-based insurer said in an e-mailed statement it reviews the size and skill of its workforce as the economic environment changes "and makes adjustment as necessary." The insurer also noted that many of its customers have reduced their labor force during the current downturn, and that has lowered WellPoint's membership totals.

WellPoint spokeswoman Kristin Binns said the company has no total for the number of cuts or when they may happen. She said WellPoint is looking at all areas of the company, not just employment totals, in its push to become more efficient.

Other ways to trim costs may include technology upgrades or reductions in administrative expenses.

"We're taking a look at our organizational structure to make sure that we are operating efficiently," she said.

WellPoint is the largest private health insurer based on membership. But the company has said its total medical enrollment fell by 1.1 million people, or 3 percent, to 34.2 million in the second quarter, compared with the same quarter last year.

WellPoint said it expects year-end medical enrollment to decrease to about 33.6 million members, a 4 percent drop.

The insurer cut about 1,500 jobs earlier this year and currently employs slightly less than 42,000 people, according to Binns.

Other insurers also have reported declining membership due to rising unemployment. WellPoint competitors Cigna Corp. and Aetna Inc. also have announced job cuts in the past year, as insurers have struggled with enrollment declines and rising medical expenses.

Shares of the company lost $1.26, or 2.3 percent, to $53.56 in midday trading.