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WELLPOINT Indianapolis, Indiana; Managed-Care Company Uses Size, Trends To Stay Competitive.(THE NEW AMERICA)
Byline: MARILYN ALVA
The prognosis for large health maintenance organizations couldn't be better. Enrollment is up, and medical cost increases are on a downward trend.
"Every big company met or exceeded earnings expectations (last) quarter," said Norman Fidel, manager of health care portfolios for Alliance Capital.
One of those companies was WellPoint, which became the nation's largest HMO after November's merger of Anthem and Wellpoint Health Networks.
With 28.8 million members around the U.S., WellPoint expects to take in $45 billion in revenue this year.
The company's reign at the top might not last long, however. The next biggest HMOs are UnitedHealth Group and Aetna.
UnitedHealth likely will take over the top spot when its pending merger with Pacificare Health Systems closes.
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