Wed Apr 30, 2014 6:40am EDT
<span id="articleText"/> (Adds outlook)
<span id="midArticle_0"/> April 30 (Reuters) - WellPoint Inc, the second-largest U.S. health insurer, said on Wednesday that first-quarter profit fell, largely because of investment spending related to healthcare reform and the higher administrative costs of adding new commercial customers.
<span id="midArticle_1"/> WellPoint, which runs Anthem and Empire Blue Cross Blue Shield plans, reported net income of $701 million, or $2.40 per share, down from $885 million, or $2.89 per share, a year earlier.
<span id="midArticle_2"/> As in Aetna Inc's report last week, earnings beat analysts' expectations. Excluding net gains on investments, WellPoint's profit was $2.30 per share. Analysts on average had expected $2.12, according to Thomson Reuters I/B/E/S.
<span id="midArticle_3"/> The company said it had spent less on medical claims than expected.
<span id="midArticle_4"/> WellPoint raised its outlook for 2014 earnings by about 20 cents per share, saying that it now expects to earn at least $8.40, excluding items. During an investor day last month, the company gave an outlook of more than $8.20 per share.
<span id="midArticle_5"/> The company added 1.2 million members in its commercial business, which includes large national employers, local employers and the individual markets.
<span id="midArticle_6"/> WellPoint is selling individual policies on the new exchanges created under President Barack Obama's national healthcare reform law in the 14 states where it operates Blue Cross Blue Shield plans. (Reporting by Caroline Humer; Editing by Lisa Von Ahn)
<span id="midArticle_7"/>
<span id="articleText"/> (Adds outlook)
<span id="midArticle_0"/> April 30 (Reuters) - WellPoint Inc, the second-largest U.S. health insurer, said on Wednesday that first-quarter profit fell, largely because of investment spending related to healthcare reform and the higher administrative costs of adding new commercial customers.
<span id="midArticle_1"/> WellPoint, which runs Anthem and Empire Blue Cross Blue Shield plans, reported net income of $701 million, or $2.40 per share, down from $885 million, or $2.89 per share, a year earlier.
<span id="midArticle_2"/> As in Aetna Inc's report last week, earnings beat analysts' expectations. Excluding net gains on investments, WellPoint's profit was $2.30 per share. Analysts on average had expected $2.12, according to Thomson Reuters I/B/E/S.
<span id="midArticle_3"/> The company said it had spent less on medical claims than expected.
<span id="midArticle_4"/> WellPoint raised its outlook for 2014 earnings by about 20 cents per share, saying that it now expects to earn at least $8.40, excluding items. During an investor day last month, the company gave an outlook of more than $8.20 per share.
<span id="midArticle_5"/> The company added 1.2 million members in its commercial business, which includes large national employers, local employers and the individual markets.
<span id="midArticle_6"/> WellPoint is selling individual policies on the new exchanges created under President Barack Obama's national healthcare reform law in the 14 states where it operates Blue Cross Blue Shield plans. (Reporting by Caroline Humer; Editing by Lisa Von Ahn)
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