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Health Insurance Scam

WellPoint health insurance company, which has encouraged its employees to lobby against health care reform, is now cutting their benefits.

The insurance giant plans to raise deductibles and premiums for some of its employee health benefits. “Your cost per paycheck will probably increase,” said a memo to Wellpoint employees that was obtained by Bloomberg News.

The company blamed the recession for the cuts. “Like many employers in today’s economic environment, we are looking at all aspects of our business,” including benefits, “and making adjustments to ensure we can continue to operate competitively in the future,” wrote Chief Human Resources Officer Randy Brown.

WellPoint’s CEO, Angela Braly, made nearly $10 million in 2008.

A House investigation found that WellPoint also rewarded employees for finding ways to drop policyholders who developed expensive conditions — a practice known as rescission.