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July 21, 2021 10:24 AM

Medicaid growth helps insurer Anthem beat Q2 expectations

Associated Press
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    INDIANAPOLIS (AP) — Anthem topped second-quarter expectations even though the health insurer's profit tumbled as patients who hunkered down last year at the start of the COVID-19 pandemic started seeking care again.

    Growing enrollment in government-funded programs like Medicaid and Medicare Advantage helped Anthem balance the jump in care use. The Blue Cross-Blue Shield insurer also booked more revenue from its IngenioRx business, which runs pharmacy benefits.

    Overall, Anthem said Wednesday that its net income fell 21% to $1.79 billion, and adjusted earnings totaled $7.03 per share. Operating revenue, which excludes investment income, rose 14% to $33.28 billion.

    Analysts expected, on average, earnings of $6.34 per share on $33.15 billion in revenue, according to Zacks Investment Research.

    Indianapolis-based Anthem Inc. covers more than 43 million people in several states, including big markets like New York and California. Its IngenioRx business also brought in about $6.2 billion in revenue during the quarter.

    Health insurer profits soared last year after the pandemic set in and patients canceled or postponed elective surgeries and other non-COVID-19 care. But insurance executives predicted that much of this care would eventually take place.

    Anthem's benefit expense jumped 27% in the recently completed second quarter to nearly $25 billion. But enrollment in state and federally funded Medicaid plans that Anthem manages climbed 19% to 9.7 million people.

    That was helped partly by a suspension of state attempts to recertify the eligibility of people with Medicaid coverage during the pandemic.

    Anthem also said Wednesday that it now expects its full-year adjusted net income to be greater than $25.50 per share, up from a previous forecast for earnings surpassing $25.10 per share.

    The new outlook tops the average analyst forecast for $25.26 per share, according to FactSet.

    Company shares rose 1.4% to $395.45 in early trading. The stock has already climbed 21% since the beginning of the year and 51% in the last 12 months.

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    • News
      • Current News
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      • Transformation
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      • ESG
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      • Regional News
        • Midwest
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    • Blogs
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        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
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      • Sponsored Video Series - Checking In with Dan Peres
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