WellPoint's 4Q Profit Plummets 39% as Benefit Expenses Climb 10%

Tags: health insurer | health insurer profit | net income | WellPoint

WellPoint, the largest health insurer based on enrollment, recorded net income of $335.3 million in the fourth quarter of 2011, down nearly 39 percent from last year's fourth quarter net income of $548.8 million, according to a WellPoint news release.

Total revenue in the fourth quarter totaled $15.3 billion, up 4.8 percent from last year. However, benefit expenses rose almost 10 percent from 2010 to 2011 for the health insurer.

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For the year, WellPoint posted a net income of $2.65 billion, down 8.3 percent from 2010's total of $2.89 billion. Total revenue in 2011 reached $60.7 billion, up from $58.7 billion in revenue in 2010. WellPoint's medical expenses ate up $47.6 billion in 2011, up 6 percent from 2010.

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