WellPoint Spells Out 2010 Outlook, Using a Lot of Caveats

JGrimes

Remember that investors meeting that WellPoint had planned in Indianapolis last month? The one that was canceled when CEO Angela Braly was summoned before a congressional committee to explain her company’s requested 39% rate hike in California?
Well, it resurfaced in the form of a 15-minute conference call this morning. Here’s what happened:
CFO Wayne DeVeydt forecast headwinds and told analysts that WellPoint expects to earn at least $6 a share this year. That would be a total of $2.6 billion, down 11% from last year’s $2.9 billion.
The caveat, which he mentioned a couple times, is that numbers are “subject to our ability to secure and maintain sufficient premium rates,” according to a transcript of the call from Thomson Reuters. The premium increases the company asked for in California are on hold while the regulator there reviews its filings.
The other elephant in the room: The health overhaul. DeVeydt said his company’s forecast doesn’t include the impact of changes in the health system. If the overhaul passes, most provisions of the legislation that would hurt an insurer’s ability to hit its marks with Wall Street wouldn’t take effect right away, so this forecast seems pretty secure in that regard.
One more thing […]

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