WellPoint shares partially recover after Thursday plunge

Back to TopCommentsE-mailPrintBookmark and Share

Shares of WellPoint Inc. partially recovered Friday morning after a plunge was touched off Thursday by gathering momentum behind health care reform and talk of a windfall-profit tax by Speaker of the House Nancy Pelosi.

Stock in the Indianapolis-based health insurer was trading above $46 a share this morning, up 3 percent. On Thursday, the shares lost more than 6 percent of their value.

Health insurance stocks opened Friday lower because the Congressional Budget Office declared that a Senate version of a health reform bill would help reduce the deficit and would spend less than the $900 billion limit set by President Obama. The report was interpreted as making health reform more likely to pass.

Wall Street analysts are mixed about whether health reform will be a boon or a burden for health insurers. On one hand, bills in Congress would pump more than $450 billion in new subsidies into the industry over the next 10 years in an attempt to reduce the number of uninsured. On the other hand, the bills would place significantly greater regulations on health insurers and hit up the industry for $67 billion in fees over the next decade.

Thursday's sell-off really got going after Pelosi floated the windfall-profits tax at a mid-morning press conference.

“Maybe that’s something we can put in the mix,” the California Democrat said, according to Bloomberg News. While calling the idea “very preliminary,” she said insurers, drugmakers and other health-care industries have “much more they can put on the table to bring down the cost.”


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.