- First quarter GAAP net income was $6.71 per share, including
net negative adjustment items of $0.30 per share. Adjusted net
income was $7.01* per share.
- Operating revenue grew by 9.0%, or 10.7% adjusted for the
repeal of the health insurance tax, over the prior year quarter to
$32.1 billion.
- Medical enrollment increased by 1.4 million members year
over year and 596 thousand members sequentially to 43.5 million
members.
- Second quarter 2021 dividend of $1.13 per share declared to
shareholders.
- Raising full year adjusted net income outlook from greater
than $24.50* per share to greater than $25.10* per share.
Anthem, Inc. (NYSE: ANTM) reported first quarter 2021 results
that reflect strong financial performance.
"Our results in the first quarter reflect strong execution and a
continued focus on supporting our communities through the
pandemic," said Gail K. Boudreaux, President and CEO. "We expect
the positive momentum in the first quarter to persist through the
balance of the year, driven by our commitment to delivering
affordable healthcare and innovative solutions for those we serve.
At Anthem, we are modernizing our business while transforming into
a digitally-enabled platform for health. Our solid performance
demonstrates the value we bring to the market and I am confident
that we are well positioned to capitalize on future opportunities
for growth."
*Refer to GAAP reconciliation tables.
CONSOLIDATED HIGHLIGHTS
Earnings Per Share: GAAP net income was $6.71 per share
in the first quarter, including net negative adjustment items of
$0.30 per share. Adjusted net income was $7.01* per share.
*Please refer to the GAAP reconciliation tables.
Membership: Medical enrollment totaled approximately 43.5
million members at March 31, 2021, an increase of 1.4 million
lives, or 3.3 percent from the prior year quarter. Government
Business enrollment increased by 1.8 million lives compared to the
prior year quarter, attributable to Medicaid, reflecting organic
growth, aided by the temporary suspension of eligibility
recertification efforts in our markets, and growth in Medicare
Advantage. Commercial & Specialty Business enrollment decreased
by 411 thousand lives compared to the prior year quarter primarily
attributable to higher in-group change in the group fee-based
business as a result of the economic environment, partially offset
by growth in Individual.
During the first quarter of 2021, medical enrollment increased
sequentially by 596 thousand lives, reflecting organic growth in
the Medicaid and Medicare businesses, higher BlueCard activity, and
sales in excess of lapses in our Commercial risk-based businesses,
partially offset by higher in-group change in the group fee-based
business.
Operating Revenue: Operating revenue was $32.1 billion in
the first quarter of 2021, an increase of $2.7 billion, or 9.0
percent, versus the prior year quarter and 10.7 percent after
adjusting for the health insurance tax. The increase was driven by
higher premium revenue due to growth in Medicaid and Medicare. The
increase was further attributable to pharmacy product revenue
related to IngenioRx, partially offset by the impact of lower
premium revenue due to the repeal of the health insurance tax in
2021.
Benefit Expense Ratio: The benefit expense ratio was 85.6
percent in the first quarter of 2021, an increase of 140 basis
points versus the prior year quarter and a decrease of 10 basis
points after adjusting for the health insurance tax. The increase
was driven by costs associated with COVID-19, including testing and
vaccine administration, and to a lesser extent, the repeal of the
health insurance tax in 2021. These increases were partially offset
by reduced non-COVID healthcare utilization and the impact of one
less calendar day compared to the first quarter of 2020.
Medical claims reserves established at December 31, 2020
developed better than the Company’s expectations during the first
quarter of 2021.
Days in Claims Payable: Days in Claims Payable was 46.9
days as of March 31, 2021, an increase of 3.5 days from December
31, 2020 and an increase of 5.0 days as compared to March 31,
2020.
SG&A Expense Ratio: The SG&A expense ratio was
12.2 percent in the first quarter of 2021, a decrease of 60 basis
points from 12.8 percent in the first quarter of 2020, primarily
driven by the repeal of the health insurance tax in 2021 and growth
in operating revenue, partially offset by increased spend to
support growth.
Operating Cash Flow: Operating cash flow was $2.5
billion, or 1.5 times net income in the first quarter of 2021.
Operating cash flow was primarily driven by changes in working
capital, membership growth in our Government business, and higher
net income, offset by the repeal of the health insurance tax in
2021.
Share Repurchase Program: During the first quarter of
2021, the Company repurchased 1.4 million shares of its common
stock for $447 million, at a weighted average price of $316.06. As
of March 31, 2021, the Company had approximately $5.6 billion
remaining of Board-approved share repurchase authorization.
Cash Dividend: During the first quarter of 2021, the
Company paid a quarterly dividend of $1.13 per share, representing
a distribution of cash totaling $277 million.
On April 20, 2021, the Audit Committee declared a second quarter
2021 dividend to shareholders of $1.13 per share. On an annualized
basis, this equates to a dividend of $4.52 per share. The second
quarter dividend is payable on June 25, 2021 to shareholders of
record at the close of business on June 10, 2021.
Investment Portfolio & Capital Position: During the
first quarter of 2021, the Company recorded net realized losses of
$4 million. During the first quarter of 2020, the Company recorded
net realized losses of $81 million.
As of March 31, 2021, the Company’s net unrealized gain position
in the investment portfolio was $776 million, consisting primarily
of fixed maturity securities. As of March 31, 2021 cash and
investments at the parent company totaled approximately $4.6
billion.
REPORTABLE SEGMENTS
Anthem, Inc. has four reportable segments: Commercial &
Specialty Business (comprised of Individual, Group risk-based,
Group fee-based, and BlueCard businesses); Government Business
(comprised of the Medicaid, Medicare, and Federal Health Products
& Services businesses); IngenioRx, and Other (comprised of the
Diversified Business Group and corporate expenses not allocated to
our other reportable segments).
Anthem, Inc.
Reportable Segment
Highlights
(Unaudited)
(In millions)
Three Months Ended March 31
2021
2020
Change
Operating Revenue
Commercial & Specialty Business
$9,491
$9,361
1.4
%
Government Business
19,283
17,466
10.4
%
IngenioRx
5,862
5,197
12.8
%
Other
2,370
1,027
130.8
%
Eliminations
(4,908)
(3,603)
NM2
Total Operating Revenue1
$32,098
$29,448
9.0
%
Operating Gain / (Loss)
Commercial & Specialty Business
$1,268
$1,420
(10.7)
%
Government Business
478
411
16.3
%
IngenioRx
407
349
16.6
%
Other
8
14
NM2
Total Operating Gain1
$2,161
$2,194
(1.5)
%
Operating Margin
Commercial & Specialty Business
13.4
%
15.2
%
(180) bp
Government Business
2.5
%
2.4
%
10 bp
IngenioRx
6.9
%
6.7
%
20 bp
Total Operating Margin1
6.7
%
7.5
%
(80) bp
(1)
See “Basis of Presentation.”
(2)
"NM" = calculation not meaningful.
Commercial & Specialty Business: Operating gain in
the Commercial & Specialty Business segment totaled $1,268
million in the first quarter of 2021, a decrease of $152 million
from an operating gain of $1,420 million in the first quarter of
2020. The decrease was primarily attributable to costs associated
with COVID-19, including testing and vaccine administration, as
well as investments to support growth. These decreases were
partially offset by reduced non-COVID healthcare utilization and
the impact of one less calendar day compared to the first quarter
of 2020.
Government Business: Operating gain in the Government
Business segment was $478 million in the first quarter of 2021, an
increase of $67 million, or 16.3 percent, from $411 million in the
first quarter of 2020. The increase was primarily driven by growth
in Medicaid membership and the impact of one less calendar day
compared to the first quarter of 2020. These increases were
partially offset by costs associated with COVID-19 net of reduced
non-COVID healthcare utilization, experience rated rebates in the
Medicaid business, and lower risk revenue.
IngenioRx: Operating gain was $407 million in the first
quarter of 2021, an increase of $58 million, or 16.6 percent, from
$349 million in the first quarter of 2020. The increase was driven
by an out of period adjustment and growth in integrated medical and
pharmacy membership.
Other: The Company reported an operating gain of $8
million in the Other segment for the first quarter of 2021,
compared with an operating gain of $14 million in the prior year
quarter. The decrease is attributable to increased corporate
expenses, partially offset by growth in the Diversified Business
Group.
OUTLOOK
Full Year 2021:
- GAAP net income is now expected to be greater than $24.05 per
share, including approximately $1.05 per share of net unfavorable
items. Excluding these items, adjusted net income is expected to be
greater than $25.10* per share.
- Medical membership is expected to be in the range of 44.1 -
44.7 million. Risk-based membership is expected to be in the range
of 18.6 - 19.0 million. Fee-based membership is expected to be in
the range of 25.5 - 25.7 million.
- Operating revenue is expected to be approximately $135.1
billion, including premium revenue of $114.5 billion - $115.5
billion.
- Benefit expense ratio is expected to be in the range of 88.0%
plus or minus 50 basis points.
- SG&A ratio is expected to be 10.8% plus or minus 50 basis
points.
- Operating cash flow is expected to be greater than $5.7
billion.
- Investment income is now expected to be $970 million.
- Interest expense is now expected to be $820 million.
* Refer to the GAAP reconciliation tables.
Basis of Presentation
- Operating revenue and operating gain/loss are the key measures
used by management to evaluate performance in each of its reporting
segments, allocate resources, set incentive compensation targets
and to forecast future operating performance. Operating gain/loss
is calculated as total operating revenue less benefit expense, cost
of products sold and selling, general and administrative expense.
It does not include net investment income, net realized
gains/losses on financial instruments, interest expense,
amortization of other intangible assets, gains/losses on
extinguishment of debt or income taxes, as these items are managed
in a corporate shared service environment and are not the
responsibility of operating segment management. Refer to the GAAP
reconciliation tables.
- Operating margin is defined as operating gain divided by
operating revenue.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30
a.m. Eastern Daylight Time (“EDT”) to discuss the company’s first
quarter results and outlook. The conference call should be accessed
at least 15 minutes prior to the start of the call with the
following numbers:
888-947-9963 (Domestic)
866-430-8786 (Domestic Replay)
312-470-0178 (International)
203-369-0937 (International Replay)
The access code for today's conference call is 9054819.
The replay will be available from 11:30 a.m. EDT today, until the
end of the day on May 20, 2021. The call will also be available
through a live webcast at www.antheminc.com under the “Investors”
link. A webcast replay will be available following the call.
About Anthem, Inc.
Anthem is a leading health benefits company dedicated to
improving lives and communities, and making healthcare simpler.
Through its affiliated companies, Anthem serves more than 116
million people, including more than 43 million within its family of
health plans. We aim to be the most innovative, valuable and
inclusive partner. For more information, please visit
www.antheminc.com or follow @AnthemInc on Twitter.
Anthem, Inc.
Membership Summary
(Unaudited and in Thousands)
Change from
Medical
Membership
March 31, 2021
March 31, 2020
December 31, 2020
March 31, 2020
December 31, 2020
Commercial & Specialty
Business
Individual
731
717
680
2.0
%
7.5
%
Group Risk-Based
3,837
3,841
3,799
(0.1)
%
1.0
%
Commercial Risk-Based
4,568
4,558
4,479
0.2
%
2.0
%
BlueCard®
6,166
6,197
6,059
(0.5)
%
1.8
%
Group Fee-Based
19,515
19,905
19,551
(2.0)
%
(0.2)
%
Commercial Fee-Based
25,681
26,102
25,610
(1.6)
%
0.3
%
Total Commercial & Specialty
Business
30,249
30,660
30,089
(1.3)
%
0.5
%
Government Business
Medicare Advantage
1,538
1,341
1,428
14.7
%
7.7
%
Medicare Supplement
930
914
933
1.8
%
(0.3)
%
Total Medicare
2,468
2,255
2,361
9.4
%
4.5
%
Medicaid
9,172
7,615
8,852
20.4
%
3.6
%
Federal Employees Health Benefits
1,632
1,614
1,623
1.1
%
0.6
%
Total Government Business
13,272
11,484
12,836
15.6
%
3.4
%
Total Medical Membership
43,521
42,144
42,925
3.3
%
1.4
%
Other
Membership
Life and Disability Members
4,766
5,158
5,064
(7.6)
%
(5.9)
%
Dental Members
6,599
6,476
6,385
1.9
%
3.4
%
Dental Administration Members
1,488
1,311
1,316
13.5
%
13.1
%
Vision Members
7,798
7,510
7,536
3.8
%
3.5
%
Medicare Part D Standalone Members
450
383
413
17.5
%
9.0
%
Anthem, Inc.
Consolidated Statements of
Income
(Unaudited)
(In millions, except per share data)
Three Months Ended March 31
2021
2020
Change
Revenues
Premiums
$
27,676
$
25,517
8.5
%
Product revenue
2,737
2,344
16.8
%
Administrative fees and other revenue
1,685
1,587
6.2
%
Total operating revenue
32,098
29,448
9.0
%
Net investment income
291
254
14.6
%
Net realized losses on financial
instruments
(4)
(81)
NM
Total revenues
32,385
29,621
9.3
%
Expenses
Benefit expense
23,699
21,489
10.3
%
Cost of products sold
2,313
1,984
16.6
%
Selling, general and administrative
expense
3,925
3,781
3.8
%
Interest expense
192
194
(1.0)
%
Amortization of other intangible
assets
80
83
(3.6)
%
Loss on extinguishment of debt
—
1
NM
Total expenses
30,209
27,532
9.7
%
Income before income tax expense
2,176
2,089
4.2
%
Income tax expense
509
566
(10.1)
%
Net income
$
1,667
$
1,523
9.5
%
Net income attributable to
noncontrolling interests
(2)
—
NM
Shareholders' net income
$
1,665
$
1,523
9.3
%
Shareholders' net income per diluted
share
$
6.71
$
5.94
13.0
%
Diluted shares
248.2
256.4
(3.2)
%
Benefit expense as a percentage of
premiums
85.6
%
84.2
%
140
bp
Selling, general and administrative
expense as a percentage of total operating revenue
12.2
%
12.8
%
(60)
bp
Income before income taxes as a percentage
of total revenue
6.7
%
7.1
%
(40)
bp
"NM" = calculation not meaningful
Anthem, Inc.
Consolidated Balance
Sheets
(In millions)
March 31, 2021
December 31,
2020
Assets
(Unaudited)
Current assets:
Cash and cash equivalents
$
9,326
$
5,741
Fixed maturity securities
24,555
23,433
Equity securities, current
3,630
1,559
Premium receivables
6,111
5,279
Self-funded receivables
3,109
2,849
Other receivables
3,071
2,830
Other current assets
4,693
4,060
Total current assets
54,495
45,751
Long-term investments:
Fixed maturity securities
558
562
Other invested assets
4,474
4,285
Property and equipment, net
3,533
3,483
Goodwill
21,708
21,691
Other intangible assets
9,352
9,405
Other noncurrent assets
1,563
1,438
Total assets
$
95,683
$
86,615
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable
$
12,347
$
11,359
Other policyholder liabilities
5,075
4,590
Unearned income
1,139
1,259
Accounts payable and accrued expenses
5,329
5,493
Current portion of long-term debt
700
700
Other current liabilities
10,159
6,052
Total current liabilities
34,749
29,453
Long-term debt, less current portion
22,534
19,335
Reserves for future policy benefits
776
794
Deferred tax liabilities, net
1,961
2,019
Other noncurrent liabilities
1,745
1,815
Total liabilities
61,765
53,416
Shareholders’ equity
Common stock
2
3
Additional paid-in capital
9,253
9,244
Retained earnings
24,793
23,802
Accumulated other comprehensive (loss)
income
(195)
150
Total shareholders’ equity
33,853
33,199
Noncontrolling interests
65
—
Total equity
33,918
33,199
Total liabilities and equity
$
95,683
$
86,615
Anthem, Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
(In millions)
Three Months Ended March 31
2021
2020
Operating activities
Net income
$1,667
$1,523
Adjustments to reconcile net income to net
cash provided by operating activities:
Net realized gains on financial
instruments
4
81
Depreciation and amortization
282
270
Deferred income taxes
31
57
Share-based compensation
64
67
Changes in operating assets and
liabilities:
Receivables, net
(1,258)
(639)
Other invested assets
(20)
63
Other assets
(288)
(525)
Policy liabilities
1,455
692
Unearned income
(119)
(109)
Accounts payable and other liabilities
358
588
Income taxes
438
491
Other, net
(109)
(44)
Net cash provided by operating
activities
2,505
2,515
Investing activities
Purchases of investments
(6,978)
(3,896)
Proceeds from sale of investments
4,650
2,728
Maturities, calls and redemptions from
investments
998
597
Changes in securities lending
collateral
(731)
(77)
Purchases of subsidiaries, net of cash
acquired
(27)
(1,908)
Purchases of property and equipment
(204)
(204)
Other, net
(15)
(24)
Net cash used in investing activities
(2,307)
(2,784)
Financing activities
Net (repayments of)/proceeds from
commercial paper borrowings
(250)
905
Net proceeds from short-term
borrowings
—
375
Net proceeds from long-term borrowings
3,462
248
Changes in securities lending payable
731
77
Repurchase and retirement of common
stock
(447)
(529)
Cash dividends
(277)
(240)
Proceeds from issuance of common stock
under employee stock plans
89
44
Taxes paid through withholding of common
stock under employee stock plans
(91)
(107)
Other, net
171
(94)
Net cash used in financing activities
3,388
679
Effect of foreign exchange rates on cash
and cash equivalents
(1)
(2)
Change in cash and cash equivalents
3,585
408
Cash and cash equivalents at beginning of
period
5,741
4,937
Cash and cash equivalents at end of
period
$9,326
$5,345
Anthem, Inc.
Reconciliation of Medical
Claims Payable
Three Months Ended
March 31
Years Ended December 31
2021
2020
2020
2019
2018
(In millions)
(Unaudited)
(Unaudited)
Gross medical claims payable, beginning of
period
$
11,135
$
8,647
$
8,647
$
7,266
$
7,814
Ceded medical claims payable, beginning of
period
(46)
(33)
(33)
(34)
(105)
Net medical claims payable, beginning of
period
11,089
8,614
8,614
7,232
7,709
Business combinations and purchase
adjustments
—
339
339
—
199
Net incurred medical claims:
Current year
24,215
21,230
85,094
78,695
69,581
Prior years redundancies(1)
(1,488)
(700)
(637)
(500)
(930)
Total net incurred medical claims
22,727
20,530
84,457
78,195
68,651
Net payments attributable to:
Current year medical claims
15,031
13,744
74,629
70,294
62,748
Prior years medical claims
6,748
6,109
7,692
6,519
6,579
Total net payments
21,779
19,853
82,321
76,813
69,327
Net medical claims payable, end of
period
12,037
9,630
11,089
8,614
7,232
Ceded medical claims payable, end of
period
39
60
46
33
34
Gross medical claims payable, end of
period
$
12,076
$
9,690
$
11,135
$
8,647
$
7,266
Current year medical claims paid as a
percentage of current year net incurred medical claims
62.1
%
64.7
%
87.7
%
89.3
%
90.2
%
Prior year redundancies in the current
year as a percentage of prior year net medical claims payable less
prior year redundancies in the current year
15.5
%
8.8
%
8.0
%
7.4
%
13.7
%
Prior year redundancies in the current
year as a percentage of prior year net incurred medical claims
1.8
%
0.9
%
0.8
%
0.7
%
1.3
%
(1)
Negative amounts reported for net incurred
medical claims related to prior years result from claims being
settled for amounts less than originally estimated.
Anthem, Inc.
GAAP Reconciliation
(Unaudited)
Anthem, Inc. has referenced “Adjusted Net
Income” and “Adjusted Net Income Per Share,” which are non-GAAP
measures, in this document. These non-GAAP measures are not
intended to be alternatives to any measure calculated in accordance
with GAAP. In addition to these non-GAAP measures, references are
made to the measures “Operating Revenue” and “Operating Gain.” Each
of these measures is provided to further aid investors in
understanding and analyzing the company’s core operating results
and comparing Anthem, Inc.’s financial results. A reconciliation of
Operating Revenue to Total Revenue is set forth in the Consolidated
Statements of Income herein. A reconciliation of the non-GAAP
measures to the most directly comparable measures calculated in
accordance with GAAP, together with a reconciliation of reportable
segments operating gain to income before income tax expense, is
reported below. Prior amounts may be grouped differently to conform
to current presentation.
Three Months Ended March 31
(In millions, except per share data)
2021
2020
Change
Shareholders' net income
$
1,665
$
1,523
9.3
%
Add / (Subtract):
Net realized losses on financial
instruments
4
81
Amortization of other intangible
assets
80
83
Loss on extinguishment of debt
—
1
Transaction and integration related
costs
9
12
Litigation expenses
6
8
Tax impact of non-GAAP adjustments
(25)
(46)
Net adjustment items
74
139
Adjusted shareholders' net income
$
1,739
$
1,662
4.6
%
Shareholders' net income per diluted
share
$
6.71
$
5.94
13.0
%
Add / (Subtract):
Net realized losses on financial
instruments
0.02
0.31
Amortization of other intangible
assets
0.32
0.32
Loss on extinguishment of debt
—
—
Transaction and integration related
costs
0.04
0.05
Litigation expenses
0.02
0.03
Tax impact of non-GAAP adjustments
(0.10)
(0.18)
Rounding impact
—
0.01
Net adjustment items
0.30
0.54
Adjusted shareholders' net income per
diluted share
$
7.01
$
6.48
8.2
%
Full Year 2021 Outlook
Shareholders' net income per diluted
share
Greater than $24.05
Add / (Subtract):
Net realized losses on financial
instruments
$0.02
Transaction and integration related
costs
$0.04
Litigation expenses
$0.02
Amortization of other intangible
assets
Approximately $1.31
Tax impact of non-GAAP adjustments
Approximately $(0.34)
Net adjustment items
Approximately $1.05
Adjusted shareholders' net income per
diluted share
Greater than $25.10
Three Months Ended March 31
(In millions)
2021
2020
Change
Reportable segments operating gain
$
2,161
$
2,194
(1.5)
%
Net investment income
291
254
Net realized losses on financial
instruments
(4)
(81)
Interest expense
(192)
(194)
Amortization of other intangible
assets
(80)
(83)
Loss on extinguishment of debt
—
(1)
Income before income tax expense
$
2,176
$
2,089
4.2
%
Anthem, Inc.
Reclassified Membership
Summary
(Unaudited and in Thousands)
Medical
Membership
December 31, 2020
September 30,
2020
June 30, 2020
March 31,
2020
Commercial & Specialty
Business
Individual
680
701
711
717
Group Risk-Based
3,799
3,774
3,789
3,841
Commercial Risk-Based
4,479
4,475
4,500
4,558
BlueCard®
6,059
6,106
6,171
6,197
Group Fee-Based
19,551
19,508
19,699
19,905
Commercial Fee-Based
25,610
25,614
25,870
26,102
Total Commercial & Specialty
Business
30,089
30,089
30,370
30,660
Government Business
Medicare Advantage
1,428
1,416
1,366
1,341
Medicare Supplement
933
933
921
914
Total Medicare
2,361
2,349
2,287
2,255
Medicaid
8,852
8,569
8,180
7,615
Federal Employees Health Benefits
1,623
1,618
1,616
1,614
Total Government Business
12,836
12,536
12,083
11,484
Total Medical Membership
42,925
42,625
42,453
42,144
Other
Membership
Life and Disability Members
5,064
5,029
5,110
5,158
Dental Members
6,385
6,356
6,400
6,476
Dental Administration Members
1,316
1,315
1,318
1,311
Vision Members
7,536
7,487
7,457
7,510
Medicare Part D Standalone Members
413
405
392
383
Forward-Looking Statements
This document contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect our views about future
events and financial performance and are generally not historical
facts. Words such as “expect,” “feel,” “believe,” “will,” “may,”
“should,” “anticipate,” “intend,” “estimate,” “project,”
“forecast,” “plan” and similar expressions are intended to identify
forward-looking statements. These statements include, but are not
limited to: financial projections and estimates and their
underlying assumptions; statements regarding plans, objectives and
expectations with respect to future operations, products and
services; and statements regarding future performance. Such
statements are subject to certain risks and uncertainties, many of
which are difficult to predict and generally beyond our control,
that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking
statements. You are cautioned not to place undue reliance on these
forward- looking statements that speak only as of the date hereof.
You are also urged to carefully review and consider the various
risks and other disclosures discussed in our reports filed with the
U.S. Securities and Exchange Commission from time to time, which
attempt to advise interested parties of the factors that affect our
business. Except to the extent otherwise required by federal
securities laws, we do not undertake any obligation to republish
revised forward-looking statements to reflect events or
circumstances after the date hereof. These risks and uncertainties
include, but are not limited to: the impact of large scale medical
emergencies, such as public health epidemics and pandemics,
including COVID-19, and catastrophes; trends in healthcare costs
and utilization rates; our ability to secure sufficient premium
rates, including regulatory approval for and implementation of such
rates; the impact of federal and state regulation, including
ongoing changes in the Patient Protection and Affordable Care Act
and the Health Care and Education Reconciliation Act of 2010, as
amended (collectively, the “ACA”) and the ultimate outcome of legal
challenges to the ACA; changes in economic and market conditions,
as well as regulations that may negatively affect our liquidity and
investment portfolios; our ability to contract with providers on
cost-effective and competitive terms; competitive pressures and our
ability to adapt to changes in the industry and develop and
implement strategic growth opportunities; reduced enrollment;
unauthorized disclosure of member or employee sensitive or
confidential information, including the impact and outcome of any
investigations, inquiries, claims and litigation related thereto;
risks and uncertainties regarding Medicare and Medicaid programs,
including those related to non-compliance with the complex
regulations imposed thereon; our ability to maintain and achieve
improvement in Centers for Medicare and Medicaid Services Star
ratings and other quality scores and funding risks with respect to
revenue received from participation therein; a negative change in
our healthcare product mix; costs and other liabilities associated
with litigation (including the ultimate outcome of litigation
between Cigna Corporation and us related to the merger agreement
between the parties), government investigations, audits or reviews;
risks and uncertainties related to our pharmacy benefit management
(“PBM”), business including non-compliance by any party with the
PBM services agreement between us and CaremarkPCS Health, L.L.C.;
medical malpractice or professional liability claims or other risks
related to healthcare and PBM services provided by our
subsidiaries; general risks associated with mergers, acquisitions,
joint ventures and strategic alliances; changes in U.S. tax laws;
possible impairment of the value of our intangible assets if future
results do not adequately support goodwill and other intangible
assets; possible restrictions in the payment of dividends from our
subsidiaries and increases in required minimum levels of capital;
our ability to repurchase shares of our common stock and pay
dividends on our common stock due to the adequacy of our cash flow
and earnings and other considerations; the potential negative
effect from our substantial amount of outstanding indebtedness; a
downgrade in our financial strength ratings; the effects of any
negative publicity related to the health benefits industry in
general or us in particular; failure to effectively maintain and
modernize our information systems; events that may negatively
affect our licenses with the Blue Cross and Blue Shield
Association; the impact of international laws and regulations;
intense competition to attract and retain employees; and various
laws and provisions in our governing documents that may prevent or
discourage takeovers and business combinations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210421005300/en/
Investor Relations
Stephen Tanal Stephen.Tanal@anthem.com
Media Michelle
Vanstory Michelle.Vanstory@anthem.com
Anthem (NYSE:ANTM)
Historical Stock Chart
From Sep 2024 to Oct 2024
Anthem (NYSE:ANTM)
Historical Stock Chart
From Oct 2023 to Oct 2024