WellPoint SWOT Analysis

WellPoint Inc., enlisted in NYSE as WLP, is a U.S. healthcare provider that offers plans to different small and large businesses. The firm also provides insurance services and medical cost management services also life and disability insurance benefits.


• Largest company for health plan in the BCBSA (Blue Cross and Blue Shield Association).

• The firm has more than 33,700,000 medical members.

• The firm employs about 39,000 people.

• Ranked as 31 in Fortune 500 list (2010).

• UniCare, offers different arrays of health care even in areas where the company does not have Blue plan license.

• Unicare serves the members in a competitive manner in terms of prices.

• The firm has a number of specialty companies that provide a variety of benefits and services to the health-plan customers, i-e Dental benefits, Pharmacy Benefit Management, Life & Disability Insurance benefits.

• The firm holds the position of being an administrator for government health benefit programs, mainly Medicare.

• WellPoint Foundation that along with its affiliated foundations has awarded more than $112 million in local and national grants.

• ‘Healthy Generation’ is another initiative that targets funding for different programs to serve all ages, from children to senior citizens.

• ‘Care Comparison’ is an online service in which a member can access information regarding drug cost and quality.

• Winner of ‘Catalyst Award’ for achieving advancement of women in executive ranks (2003).

• The firm has a vast portfolio of products and a wide geographical spread.

• It has a leadership position regarding the services it offers.


• Substantial debt.

• Unsatisfactory management regarding the customer’s perspective in procession to their requirement.

• Selling its NextRx subsidiaries.

• Received two stars out of four in meeting the National Standards of Care in California Healthcare Quality Report (2009).

• The firm had to pay $10 million and reinstate some policy holders who had their plans cancelled by the firm.

• Health care reform scandal in which the firm made its employees go against the decision of Congress Health Reform.

• The firm wanting to raise the Premium to some of its services.

• The firm through its charitable foundation claimed a $30 million spending in 3 years for the less privileged, but failed to show any financial records.


• The firm has favourable demographic trends.

• There is a huge uninsured population.

• Market fragmentation will provide more opportunities for the firm.

• Universal Health Care will be a more apt step towards setting trends regarding medical benefits for the customer audience.


• Changes in the federal and state regulations regarding the policies for health care programs.

• Intense competitive environment.

• Health care cost-cutting measures are quite hard in order to refine a larger profit margin.

• Slow trending economy.

• Nationalized Health Care.

• Rising Unemployment.

• Government Interventions.



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