Anthem 1Q Profit Falls, Revenue Rises
April 29 2020 - 6:51AM
Dow Jones News
By Dave Sebastian
Anthem Inc. reported lower first-quarter profit as expenses
rose, though revenue increased.
The health insurer on Wednesday posted net income of $1.52
billion, or $5.94 a share, compared with $1.55 billion, or $5.91 a
share, in the comparable quarter last year. Adjusted earnings were
$6.48 a share.
Analysts polled by FactSet were looking for $6.30 a share, or
$6.47 a share on an adjusted basis.
Medical-loss ratio, which represents the share of premiums the
insurer pays out in claims, was 84.2% for the quarter, meeting
analysts' expectations. Its ratio was 84.4% in the year-ago period.
Analysts were expecting 84.2%. Investors watch the MLR as a gauge
of health spending and insurers' operational profitability.
Revenue rose 20.1% to $29.62 billion, driven by pharmacy product
revenue related to the launch of IngenioRx. Analysts were looking
for $28.69 billion.
Expenses rose 21.2% to $27.53 billion.
The company's medical enrollment rose 3.2% to 42.1 million on
March 31, partly driven by the addition of Medicaid members in
Missouri and Nebraska, it said.
The company last month said it would waive copays, coinsurance
and deductibles for in-network medical visits associated with
Covid-19 testing. Anthem also said it would waive expenses for
phone and video medical consultations for its members and relax
early-refill limits on certain prescriptions to help patients stock
up on necessary drugs.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
April 29, 2020 06:36 ET (10:36 GMT)
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