WellPoint Wants to Use 1-800 Contacts as a Starting Point

"WellPoint, [the parent of Anthem] and based in Indianapolis, said Monday that the eyewear company will help diversify its revenue sources with a high-margin business," reports Business Week. "The insurer typically generates an after-tax profit margin of around 4 percent. 1-800 Contacts can generate margins in the double-digit range, said Ken Goulet, WellPoint's president of commercial and specialty companies....1-800 Contacts currently has about 3.3 million customers. WellPoint Chairwoman and CEO Angela Braly said in a statement that the business comes with a significant growth opportunity because there are more than 38 million people wearing eye contact lenses and more than 140 million people wearing eye glasses in the United States." Read more.