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WellPoint Inc. has already more than doubled the enrollment gains it expected in 2011 for national accounts that the health insurer administers for large employers.
The Indianapolis company, which operates Blue Cross Blue Shield plans in 14 states, expected to gain about 200,000 people from that business segment but has already gained 450,000, Chief Financial Officer Wayne DeVeydt said Tuesday at the Citi Global Healthcare Conference in New York.
Insurers have been hit by losses in employer-sponsored insurance the past few years as companies cut jobs and subsequently reduced the number of people covered under their insurance plans.
Companies typically see strong enrollment growth in January, when businesses renew their coverage for another year. Even so, DeVeydt said he thought the insurer was "coming out of the gate strong."
WellPoint is the largest health insurer based on enrollment, and it ended 2010 with medical enrollment of 33.3 million people, down 1 percent from 2009. The insurer expects to gain only about 70,000 people this year, as losses in its individual insurance and small-group plans balance the other gains.
DeVeydt also said WellPoint was "very comfortable" with its 2011 profit forecast of $6.30 per share. Analysts surveyed by FactSet expect, on average, earnings of $6.60 per share.
Citi analyst Carl McDonald said in a research note he expects the company to earn $6.65 per share this year. He said lower costs could help earnings, along with "much higher" investment income than what WellPoint assumes.
WellPoint shares climbed 83 cents to close at $66.81 Wednesday.
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