|
Anthem's government business fueled the bulk of its enrollment growth in 2020 as commercial enrollment was stagnant. Overall, Anthem's government business experienced a growth of nearly 17% year over year from 2019 to 2020, while the commercial and specialty unit increased just 0.2%. As part of this latest deal, Anthem is poised to add more than 572,000 government members, a significant one-time pickup. Anthem is set to gain more than 267,000 MA members in the MMM plan, which is the ninth-largest MA plan in the country, according to Anthem, which ended 2020 with 1.4 million MA members, a nearly 18% increase from 2019. Its Medicaid book of business will add more than 305,000 members through the deal, which needs approval from various regulators including the Commonwealth of Puerto Rico. Anthem's Medicaid business pegged enrollment at nearly 9 million at the end of 2020, about a 22% increase from its 2019 Medicaid enrollment. 2021 EPS guidance will not change as a result of the acquisition, Anthem said. Anthem cut its outlook for 2021 as it experienced a rebound in care in the fourth quarter, which weighed heavily on its quarterly profit. Although some insurers reported large profits during periods of 2020 as members deferred care due to the pandemic, companies have warned the trend will ultimately swing in the opposite direction when patients return for care they put off. Insurers expect some members may even be sicker as diagnoses went undetected. Anthem is acquiring the units from InnovaCare and its equity investor Summit Partners, which has invested in a slew of healthcare companies, including U.S. Renal Care, a dialysis operator and MD VIP, a concierge physician practice. Sources: https://www.modernhealthcare.com/insurance/anthem-picks-up-medicaid-plans-puerto-ric  |
It's not a secret that the Medicare Advantage market is booming.
At Anthem, for instance, enrollment in MA was up nearly 18% at the end of 2020 compared to the year before, reaching 1.4 million members.
Total Medicare enrollment, including both MA and supplement plans, was also up more than 11% at the end of 2020, Anthem told investors on Wednesday, reaching 2.4 million.
"We're pleased with our continued growth in this important segment for Anthem," CEO Gail Boudreaux said on the insurer's earnings call.
Chief Financial Officer John Gallina told investors that Anthem is also "projecting double digital growth at the midpoint" of 2021 for Medicare Advantage, and that the company expects "continued, measured growth" over the course of the year in MA. Boudreaux added that the insurer's Essential Extras offering in Medicare Advantage drew significant interest in 2020, with a 300% increase in members selecting a benefit through the program.
In eligible plans, members have the option of choosing coverage for a number of services depending on their needs or desires, ranging from transportation to a health and fitness tracker to assistance from a personal home helper.
Anthem's Q4 earnings miss Wall Street estimations
Anthem reported $551 million in profit for the fourth quarter of 2020, falling short of Wall Street analysts' predictions.
That marks a 41% drop in profit compared to the fourth quarter of 2019, when Anthem brought in $943 million in profit, according to the company's earnings report released Wednesday morning.
Anthem earned $4.6 billion for full-year 2020, a slight dip compared to earnings of $4.8 billion in 2019, the company said.
Many insurers warned that their fourth-quarter financials may be less than stellar as healthcare utilization returns to near-normal levels and costs related to COVID-19 mount. Anthem CEO Gail Boudreaux said in a statement that despite the challenge of the pandemic, the company performed strongly over the course of the year.
“Despite uncertainties with the pandemic, Anthem delivered strong growth across all of our businesses in 2020 reflecting the diversity and strength of our portfolio and our unwavering commitment to those we serve,” said Boudreaux. “I am proud of all that we accomplished during this challenging time, and we remain focused on supporting our members, customers and communities as a trusted health partner.”
Anthem reported $31.8 billion in revenue for the quarter, which did surpass analysts' expectations. That figure represents a 16% increase in revenue compared to the fourth quarter of 2019 when the insurer brought in $27.4 billion.
Total revenue for 2020 was $121.9 billion, an increase of 17% compared to 2019's $104.2 billion in revenue, Anthem said.
Anthem also added 1.9 million members over the course of 2020, bringing its total membership to 42.9 million as of Dec. 31.
For 2021, Anthem expects earnings in excess of $24.50 per share and operating revenues of approximately $135.1 billion.
Source: https://www.fiercehealthcare.com/payer/anthem-misses-wall-street-predictions-551m-q4-profits
(Bloomberg) — U.S. antitrust enforcers roundly rejected a pair of proposed deals that would consolidate the nation’s five biggest health insurers into just three.
