NEW YORK (Reuters) - Insurer UnitedHealth Group Inc said on Tuesday it expects enrollment in its commercial health plans for employers to drop by as many as 1.5 million members next year as it holds fast on pricing and grapples with the weak economy.
The forecast, posted on the company's website on Tuesday, includes declines of between 450,000 to 800,000 for its more lucrative plans, for which the company assumes full insurance risk.
In total, the company forecast commercial enrollment of 24.85 million to 25.35 million next year, according to slides posted ahead of its investor day in New York.
The largest U.S. health insurer by market value forecast that its Medicare Advantage plan enrollment would climb by between 100,000 and 135,000 members next year.
Like most health insurers, UnitedHealth has endured a rough year. UnitedHealth twice reduced its 2008 earnings expectations earlier in the year amid challenges for its commercial business for employers and its Medicare plans for seniors.
Health insurers also have been pressured in recent weeks because of concerns about their investment portfolios amid the global credit crisis.
Through Monday, UnitedHealth's shares have fallen 65 percent this year in line with the decline for the S&P Managed Health Care index <.GSPHMO>.
In October, UnitedHealth issued a 2009 profit outlook that includes the possibility of an earnings decline next year. The company said the economic climate severely limited its visibility into next year and assumed layoffs stemming from the troubled economy would hurt its enrollment.
(Reporting by Lewis Krauskopf; Editing by Steve Orlofsky)
