Anthem said its total health plan membership is up more than 1 million Americans amid open enrollment for Medicare Advantage and as private employers allow workers to change their benefits for 2020 as well.
The nation’s second-largest health insurer said its total medical enrollment was 41 million as of Sept. 30, the end of the third quarter thanks largely to “fully insured” enrollment that benefits health plan premium revenues.
Anthem, which operates Blue Cross and Blue Shield plans in 14 states, is finding success administering health plans for state Medicaid programs and, like other health plans, is pushing deeper into Medicare Advantage, which allows health insurers to contract with the federal government to administer health benefits for seniors. Anthem’s Medicare Advantage enrollment was up 21% to 1.2 million in the third quarter and the insurer expects that to increase in 2020.
“We remain confident we will continue to outpace the market,” Anthem chief executive Gail Boudreaux said of future Medicare Advantage growth during a Wednesday morning call to discuss earnings with analysts.
The larger pool of health plan subscribers in any health insurance business is good because it allows insurers to spread rising medical costs across more people and their premium dollars. Higher medical costs at Anthem and other health plans have been a concern of late by Wall Street and other health insurance industry observers.
But Anthem’s third-quarter profits were ahead of analysts expectations. Anthem’s net income jumped 23% to $1.18 billion, or $4.55 per share, in the third quarter. That compares to $960 million, or $3.62 per share, a year earlier.
Revenues, meanwhile, rose nearly 15% to $26.7 billion. Premium revenue was up 11% to $23.8 billion
Source: Forbes