INDIANAPOLIS (AP) — WellPoint Inc.'s fourth-quarter net income sank 39 percent as medical claims increased, mostly because of a $50 million hit from the health insurer's Medicare Advantage business. But the company forecast earnings growth in 2012.
The performance led to a rare miss of Wall Street expectations, and WellPoint's full-year earnings outlook also fell short of analyst forecasts. The Indianapolis company's stock, which had mostly climbed so far in 2012, fell Wednesday.
Investors are used to managed-care companies beating expectations handily, so WellPoint's performance will not sit well, Jefferies analyst David Windley said in a research note.
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