Wellpoint / high health care costs
Wellpoin/Anthem, made 3.3 BILLION, in PROFIT in 2007. They have only been allowed legally to be a publically traded company on Wallstreet for less than 10 years. Now that they are a public company, Wallstreet expectations control their decisions. They must now make more money every year or their stock value will go down. How does an insurance company make more money every year? It must either increase premiums or they must slash claims payments.
Wellpoint announced at the end of the first quarter of 2008 their expected profits were going to be less than projected. Instead of making 3Billion in Profit this year they would ONLY make 1 BILLION. Their stock value dropped 47%. Since one BILLION is not encough they announced they were dropping some contracts and would be reviewing more carefully neonatal and oncology claims(translation: more claims denied) All of this while Wellpoint's Board and executives have tens of millions in stock options. Guess what they care about. Last year Wellpoint's CFO had to "leave" because of sexual discrimination claims against him. He left with 118 million.