Health insurer WellPoint Inc., parent of Anthem Blue Cross and Blue Shield of Connecticut, said today it will cut about 1,500 jobs to reduce costs as it copes with the U.S. recession.
The Indianapolis-based insurer will eliminate about 3.5 percent of its staff, which currently totals more than 42,000. More than 900 open positions and 600 associate jobs are being eliminated.
Rising unemployment is affecting health insurers because their employer customers have fewer workers to cover.
WellPoint did not estimate how much it will save from the job cuts, nor did it say how many jobs could be lost in Connecticut. But said it will take a one-time charge of $24 million in the fourth quarter. The company will report its fourth-quarter results Jan. 28.
WellPoint says its Medicare Advantage and Medicare Part D compliance staff are not affected by the move. The federal Centers for Medicare and Medicare Services earlier this week barred the company from enrolling new patients in both those programs because of growing complaints that members were not receiving prescription drugs.
 At 11 a.m., Wellpoint shares traded at $37.89, up 4 cents, or 0.1 percent. (AP)
