The New York Times-20080124-Earnings Rise 7- At Health Insurer

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Earnings Rise 7% At Health Insurer

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The quarterly profit at WellPoint, the largest United States health insurer, rose 7 percent, but an unexpected rise in the percentage of revenue used to cover medical costs helped push down its shares.

The shares fell $2.90, to $75.85, on Wednesday.

WellPoint, which operates Blue Cross and Blue Shield plans, posted fourth-quarter net income of $859.1 million, or $1.51 a share, up from $801.1 million, or $1.28 a share, in the 2006 quarter. The company reported $15.56 billion in revenue.

The benefit expense -- or medical loss -- ratio rose to 82.9 percent, from 81 percent a year earlier.