Anthem Sees Big 2020 Medicare And Medicaid Growth

Bruce Japsen Senior Contributor Jan 29, 2020

Anthem is projecting to add 1 million more health[+]

© 2016 BLOOMBERG FINANCE LP

Anthem added 1.1 million health plan members last year and is projecting another big year led by new enrollment in Medicaid and Medicare Advantage plans that will bring in another 1 million new health plan members.

Anthem chief executive officer Gail Boudreaux Wednesday said the insurer now operates the “fourth largest” Medicare Advantage plan in the country and will add another 150,000 to 200,000 new members in 2020 following a successful sign-up period.

Anthem, which operates Blue Cross and Blue Shield plans in 14 states, ended 2019 with 1.2 million Medicare Advantage enrollees, which was up 20% from the year before. Anthem ended 2019 with 41 million total health plan members.

“We have strong momentum moving into 2020,” Boudreaux said Wednesday.

Health insurers are adding record numbers of seniors to their Medicare Advantage plans, which contract with the federal government to provide the same coverage as traditional Medicare plus extras. The government has allowed health insurers to cover more supplement benefits, which has boosted enrollment across the industry.

In an 75-minute call with analysts on Wednesday, Boudreaux said seniors are attracted to Anthem’s “essential extras benefit” which includes “healthy food delivery,” home assistance and other supplemental benefits.

The new members in 2019 and fast-growing government business helped Anthem’s earnings soar 120% to $934 million, or $3.62 per share in the fourth quarter ended Dec. 31. 2019. Revenue rose 17% to $27.4 billion.

Anthem expects growth to continue thanks largely to its improving government business. In its Medicaid business, which contracts with states to provide health benefits to poor Americans, Boudreaux said the company will be operating in 23 states and the District of Columbia.

Anthem said Anthem will add more than 300,000 new Medicaid health plan enrollees in 2020. Anthem ended 2019 with nearly 7.3 million Medicaid health plan members, which was up 8% from the year before.

Anthem’s 2020 growth will benefit from its acquisition of health plans from Centene, which needed to divest some assets to win regulatory approval of its recently completed acquisition of WellCare Health Plans. The acquisition will bring Anthem new Medicaid members in Missouri and Nebraska. 

https://www.forbes.com/sites/brucejapsen/2020/01/29/anthem-sees-big-2020-medicare-and-medicaid-growth/amp/