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 wide range of managed care services to self-funded customers. With the current healthcare reconstruction proposals to regulate medical insurance and healthcare spending are enacted into law, and then WellPoint’s business and financial condition will be affected.
External Environmental Factors
The opportunities that are available to WellPoint are that they are diversified within many communities nationwide. They hold the largest demographic opportunity available to the insured as well as uninsured population at a low cost. The recession was a great opportunity for WellPoint to gain market value because competitors were not able to provide the services. Universal healthcare gives the opportunity for many companies to get involved in the health care industry. This will increase the demand of services that WellPoint can offer to customers. With the government being involved they can control the money that is involved for medical care, so this can be an advantage for certain areas of the health care industry.
The threats that stand out would the downfall of universal healthcare. Government regulated insurance carry heavy regulated rates that can be costly to WellPoint. 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...