WellPoint trims profit forecast

Health insurer WellPoint Inc. cut its 2008 profit outlook Monday, citing higher-than-expected medical costs and lower-than-expected enrollment, sending shares 18% lower in after-hours trading.

The largest U.S. health insurer by membership also cited worsening economic conditions and said it now expected to earn $5.76 to $6.01 a share for the year compared with its previous forecast of $6.41 a share.

The revised outlook would reflect profit growth of 4% to 8%.

For the first quarter, WellPoint cut its profit forecast to $1.16 to $1.26 a share, from an earlier view of $1.44 a share.

The Indianapolis-based company, which operates Blue Cross Blue Shield plans, forecast year-end membership of 35.3 million. That is about 300,000 lower than the forecast it gave in late January, which itself was about 200,000 lower than a previous estimate.

In after-hours trading, the stock dropped $11.87 to $54.05.