Anthem Closes Year With Slight Enrollment Growth
January 31 2018 - 6:39AM
Dow Jones News
By Cara Lombardo
Enrollment in Anthem Inc.'s medical plans dropped by 13,000 in
its latest quarter but increased slightly overall last year, the
health insurer said Wednesday.
Anthem said 40.2 million people were enrolled in its plans at
the end of 2017, an increase of less than 1% from a year earlier.
More people enrolled in self-funded and fully-insured local group
plans, while membership declined in its national and individual
business.
Anthem has been leaving Affordable Care Act exchanges around the
country and has forecast enrollment in its ACA plans to drop by
about 70% in 2018. The company has said it would consider
re-entering some markets next year if stability increases.
The company beat analysts' estimates in its fourth quarter,
posting revenue of $22.4 billion, up 4.5% from a year ago and more
than the $22.2 billion analysts expected.
Anthem reported a profit of $1.23 billion, or $4.67 a share,
compared with $368 million, or $1.37 a share, a year ago. The
difference primarily stems from a deferred tax benefit this year
due to changes in the U.S. tax law. On an adjusted basis, net
income fell 28% to $338.8 million.
The company earned an adjusted $1.29 a share, down from $1.76 a
share in the year-earlier period. Analysts had expected adjusted
earnings per share of $1.27.
Shares in Anthem and other health insurers were rattled Tuesday
after Amazon.com Inc., JPMorgan Chase & Co. and Berkshire
Hathaway Inc. said they plan to form a new company to reduce their
workers' health costs. Anthem shares closed down more than 5%.
Anthem shares, up 58% over the past year, were inactive in
premarket trading.
The company on Wednesday guided adjusted earnings per share for
the year of more than $15.00.
The company also named a new board member, Bahija Jallal, who
will join the company Feb. 1. Ms. Jallal is an executive vice
president at AstraZeneca and president of its biotechnology
subsidiary, MedImmune, where she oversees research and
development.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
January 31, 2018 07:24 ET (12:24 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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