Business Analysis: WellPoint Essay

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Introduction WellPoint is considered one of the leading commercial health benefits companies in the United States. WellPoint is a health benefits company engaged in providing managed care and health insurance products. The company is an independent licensee of the Blue Cross Blue Shield Association (BCBSA). It is licensed conduct insurance operations in all 50 states of the US through its subsidiaries. WellPoint covers more than 34.8 million people and focus’s on improving the lives of the people and the health of its communities through its healthcare services. WellPoint offers a wide range of network-based managed care plans to the small and large employer, individual, Medicaid and senior markets. In addition, the company offers a…show more content…
With constant changes in state and federal regulation concerning the healthcare reform along with regular insurance changes it can become a threat to keep up with the changing laws. Competition is always a threat to any business. Although, WellPoint is a leader in its market universal healthcare has given its competitors the opportunity to gain market share and customers that they normally would not have the ability to. Healthcare cost cutting is another threat that can affect WellPoint. Many companies can no longer afford to be self-funded plans which have decreased membership both nationally and individually for WellPoint. This is what keeps WellPoint as a leader, and if businesses are cutting cost WellPoint has to increase costs. Internal Environmental Factors The strengths that WellPoint can contribute is their leadership in the industry, low discount rates, stable businesses opportunities in a wide range of geographic locations, and the costs to consumers. Low discount rates and stable businesses increase the company’s value, because future cash flow are less risky. A stable business makes forecasting companies' future financial results easier. Therefore, there will be less risk to an analysis. WellPoint is a leading competitor in the industry. Financial margins, market share and profitability become more important, because growth is no longer the driving force for WellPoint.
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