UnitedHealth posts $1.2 billion quarterly profit

Enrollment in UnitedHealth plans that provide broad health benefits was 28.5 million, up about 200,000 from the third quarter. Analysts said that excluding acquisitions, membership was short of their estimates.

The company cut its forecast for growth in its Medicare Advantage program in the current quarter. It now expects to add about 20,000 members, down from a previous forecast of about 90,000. It expects to add between 80,000 and 100,000 members to the program overall this year.

"Our shortcomings in this area are due more to our own lack of marketing execution than any real broader market dynamic," Chief Executive Stephen Hemsley told analysts on a conference call. He believes Medicare Advantage will remain a growth opportunity.

Medicare Advantage plans generally result in far more revenue per member than the plans that offer just prescription drug benefits.

The Minneapolis-based company is trying to rebound from a stock options scandal that led to the ouster of its longtime chief executive, William McGuire.

Fourth-quarter results included about $50 million in cash and noncash expenses related to stock option matters, the company said.

Hemsley said the company was seeking to become current on its financial statements "as quickly as possible." Analysts have said it is important for the company to file the reports so the insurer can resume buying back shares.

UnitedHealth shares were down $1.25 to $54.40 in midday trade on the New York Stock Exchange.

Although the shares have rebounded in recent months, they were still down 9 percent in the 12 months ended Wednesday, underperforming the shares of rival WellPoint Inc. <WLP.N>.