Wednesday, October 25, 2017

Anthem third-quarter profit buoyed by higher membership, premiums

By Shelby Livingston  | October 25, 2017

National health insurer Anthem's profit ballooned by 20.9% to $746.9 billion in the third quarter of 2017, helped by higher premiums and membership growth.

The Indianapolis-based insurer reported revenue of $22.4 billion, up 4.8% from the same quarter a year ago.

The financial results "reflect continued operating momentum across our commercial and government businesses and our focus on improving affordability and choice for our customers," Anthem President and CEO Joseph R. Swedish said in a statement.

Membership at the end of the quarter totaled 40.3 million, a slight increase from 39.9 million at the same time last year. The bump in membership was driven largely by new local employer customers, though the company also added Medicare and Medicaid members. It lost membership in its individual insurance business, as expected, and its national employer business.

The benefit expense ratio was 87% for the quarter, up from 85.5% a year ago. Anthem attributed the higher expense ratio to the one-year waiver of the health insurance tax in 2017.

Shelby Livingston is an insurance reporter. Before joining Modern Healthcare in 2016, she covered employee benefits at Business Insurance magazine. She has a master’s degree in journalism from Northwestern University’s Medill School of Journalism and a bachelor’s in English from Clemson University.

http://www.modernhealthcare.com/article/20171025/NEWS/171029936?utm_source=modernhealthcare&utm_medium=email&utm_content=20171025-NEWS-171029936&utm_campaign=am

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