UnitedHealth sees 2009 commercial enrollment dip

The company said Tuesday it could lose anywhere from 1 million to 1.5 million customers from its estimated 2008 total of 26.3 million. The company posted slides on its Web site for its annual investor meeting in New York City.

Minnetonka, Minn.-based UnitedHealth is the second-largest insurer in terms of enrollment, trailing only Indianapolis-based WellPoint Inc. UnitedHealth expects 3 percent growth in commercial enrollment this year from last year's total of 25.5 million.

The company cited attrition and pricing discipline as reasons behind the enrollment shift. UnitedHealth officials said they're pricing their coverage based on risk, not the market, and they believe some of their business will return.

"There may be more pricing discipline coming into the market as a whole, and as that happens, we'll start getting some of this business back," spokesman Don Nathan said.

UnitedHealth expects revenue to grow 8 percent in 2008, to $81.2 billion, and operating earnings to grow 20 percent to $6.4 billion.

The company affirmed Monday that it expects earnings per share between $2.95 and $2.98 for 2008 and between $2.90 and $3.15 per share next year. UnitedHealth also expects revenue of between $85 billion and $86 billion in 2009.

Analysts polled by Thomson Reuters predict earnings per share of $2.94 this year on $80.8 billion in revenue and $3.04 per share in 2009 on revenue of $84.3 billion.

Company shares rose 16 cents to $20.28 in late morning trading Tuesday.