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.