Wellpoint to Focus on Wellness (WLP, AET, HUM, CI)

Health insurer Wellpoint Inc. (NYSE: WLP) is changing its fee schedule for primary care physicians. Like other insurers Aetna Inc. (NYSE: AET), Humana Inc. (NYSE: HUM), and Cigna Inc. (NYSE: CI), Wellpoint’s share price has been falling as costs have eaten into profits.

The new approach from Wellpoint will boost payments by about 10% to primary care physicians in an effort to avoid the costlier surgeries and emergency room visits that occur when patients avoid routine visits and check-ups. The Wall Street Journal notes that payments to primary care doctors could rise by 50% in certain circumstances.

Wellpoint reported weak fourth quarter earnings and offered a weak outlook on Wednesday, sending shares plummeting by about -7%. Shares closed yesterday at $64.30 in a 52-week range of $56.61-$81.92.