WellPoint Inc., the nation’s largest health insurer, saw an increase in its national business in the first quarter, while other segments experienced losses as a result of the economy.

Angela F. Braly

The Indianapolis-based insurer said the decreases were “most significant” in its local group business, which shed 620,000 members compared to the first quarter of 2008.

Overall, the company’s net income for the quarter was $1.16 per share, including net realized investment losses of 46 cents per share.

“Our first quarter was solid in light of the current economy,” said Angela F. Braly, president and chief executive officer of WellPoint, in a statement “While our membership levels have been impacted by employer workforce reductions, we continue to take action to make our products more attractive and create more value for our customers.”

Nationwide, WellPoint covers more than 35 million people. In New York, its subsidiary, Empire BlueCross Blue Shield, covers five million in 10 New York City metropolitan areas and surrounding counties and its Anthem Blue Cross Blue Shield subsidiary covers Virginia and the Northern Virginia suburbs of Washington, D.C.

The company’s national business enrollment grew by more than 400,000, or 3.6%, during the quarter.

Overall medical enrollment fell by 814,000 members, or 2.3%, to 34.6 million as of March 31, according to the company.

WellPoint enrollment in state-sponsored business declined by 416,000 members, as it withdrew from programs in Ohio and Connecticut during 2008 and early 2009.

Membership declines were also experienced in the individual and senior businesses, but those declines, the company said, were partially offset by growth of more than 400,000 members in the national business.

Medical membership declined by 490,000, or 1.4% in the first quarter of 2009.

Company officials said the 34.6 million in enrollment was “in line with management expectations” for total membership.

However, company officials did admit that enrollment in fully insured employer-based products was lower than expected, while membership was ahead of plan in the self-funded businesses and the consumer segment.

“The decline in fully insured membership occurred primarily in the employer based businesses, which is a reflection of the economic downturn,” Braly said.

Self-funded enrollment climbed to 54% of the company’s overall enrollment, up from 53% the previous quarter.

Operating revenue, which fell by four-tenths of a percent to $15.3 billion compared to first quarter 2008, was hurt by lower fully insured enrollment, particularly in the commercial business segment, according to WellPoint. The company said it offset this decline by disciplined pricing across all medical lines of business and increased reimbursement in the Federal Employee Program.

The benefit expense ratio was 81.6% in the first quarter of this year, a decrease of 350 basis points from 85.1% in the prior year quarter.