Oct. 28--Indianapolis medical benefits provider WellPoint, a key player in the nation's continuing health care reform debate, today reported that profits slipped 11 percent in its third quarter.

Net income was $730.2 million, or $1.53 per diluted share, down from $820.7 million, or $1.60 per share, in the same period in 2008.

A trio of factors weighed down results including a recession-forced drop in workers who use WellPoint as their health care provider as well as more expenses related to fighting the flu and paying out for COBRA.

"We are performing well as an organization in a difficult economic environment. Our third quarter results were better than we expected," said Angela F. Braly, president and chief executive officer of WellPoint.

Per-share earnings appeared to top analysts' estimates, according to Bloomberg and Thomson Reuters.

She said WellPoint is confident in its outlook for the fourth quarter and have maintained its guidance for the full year of 2009.

WellPoint is still No. 1 in membership even after losing 1.5 million members in the past year. Medical enrollment was 33.9 million on Sept. 30, a 4.2 percent decrease from 35.3 million at September 30, 2008.

Rival UnitedHealth, which is considered by many to be a bellwether for managed care companies, earlier this month said it saw rising costs from H1N1 flu in the third quarter and an enrollment increase of people who continue their employer-based health insurance under the federal law known as COBRA after they leave their jobs.

-----

To see more of The Indianapolis Star, or to subscribe to the newspaper, go to http://www.IndyStar.com.

Copyright (c) 2009, The Indianapolis Star

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

WLP, UNH,

A service of YellowBrix, Inc.