Item 7.01Regulation FD Disclosure
Officers of Anthem, Inc. (the Company) will speak with investors during the period commencing on November 29, 2018 and ending
on December 7, 2018. During these meetings, Company officers intend to reaffirm the Companys net income guidance for full year 2018 to be greater than $14.46 per share, including approximately $1.14 per share of net unfavorable items.
Excluding these items, the Company continues to expect adjusted net income to be greater than $15.60 per share. This guidance does not include any adjustment items beyond those reported in the Companys third quarter 2018 earnings release.
In addition to reaffirming net income earnings guidance, Company officers also intend to reaffirm all other full year 2018 guidance metrics
issued in the Companys third quarter earnings release other than medical membership guidance. The Company now expects 2018
year-end
medical membership to be approximately 39.5 million due to the
delayed launch of the Blue Cross Blue Shield of Minnesota Medicaid partnership, which is now expected to go live in the first quarter of 2019. Fully insured membership is now expected to be approximately 14.2 million and self-funded
membership is now expected to be approximately 25.3 million.
None of the information furnished in Item 7.01 hereto shall be
deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. Unless expressly set forth by specific reference in such filings, none of the information furnished in this report shall be
incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.
FORWARD-LOOKING STATEMENTS
This document contains
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 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, or collectively the ACA; trends in healthcare costs and utilization rates; our ability to contract with providers on cost-effective and competitive terms; our ability to secure sufficient premium rates
including regulatory approval for and implementation of such rates; reduced enrollment; 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, or CMS, Star ratings and other quality scores and funding risks with respect to revenue received from participation
therein; competitive pressures, including competitor pricing, which could affect our ability to maintain or increase our market share; a negative change in our healthcare product mix; our ability to adapt to changes in the industry and develop and
implement strategic growth opportunities; costs and other liabilities associated with litigation, government investigations, audits or reviews; the ultimate outcome of litigation between Cigna Corporation, or Cigna, and us related to the merger
agreement between the parties, including our claim for damages against Cigna, Cignas claim for payment of a termination fee and other damages against us, and the potential for such litigation to cause us to incur substantial costs, materially
distract management and negatively impact our reputation and financial positions; medical malpractice or professional liability claims or other risks related to healthcare services provided by our subsidiaries; possible restrictions in the payment
of dividends by our subsidiaries and increases in required minimum levels of capital; 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; unauthorized disclosure of member or employee sensitive or confidential information, including the impact and outcome of any investigations, inquiries, claims and
litigation related thereto; failure to effectively maintain and modernize our information systems;
non-compliance
by any party with the Express Scripts, Inc. pharmacy benefit management services agreement,
which could result in financial penalties, our inability to meet customer demands, and sanctions imposed by