INDIANAPOLIS (AP) — WellPoint Inc.'s fourth-quarter earnings sank 39 percent as medical claims soared thanks to 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 faster than broader trading indexes in Wednesday trading.
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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