Everything isn't well at WellPoint
And of course there's that whole government-sponsored public plan that's hanging over the insurers' heads.
Despite the earnings beat, it still wasn't a pretty quarter for WellPoint. Revenue was down slightly because of unemployment, and the flu and COBRA coverage for workers who lost their jobs cut into earnings. As part of the stimulus package from earlier this year, the government offered to pony up to help the unemployed pay for COBRA coverage. While it's added revenue for insurance companies, it comes at a price because people who go on COBRA tend to be those who need it the most and therefore rack up higher medical bills.
As with UnitedHealth Group
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