Anthem Continues to See Membership Growth and $ 32.1 Billion in Operating Revenue
The Indianapolis-based insurer said a medical workforce of 43.5 million members at the end of the first quarter, up 3.3% from the previous quarter.
Anthem Inc. reported operating income of $ 32.1 billion for the first quarter of 2021, driven by continued growth in membership, according to the latest report on company results published Wednesday morning.
IngenioRX, the insurer’s PBM, generated operating income of $ 407 million in the first quarter, up 16.6% from $ 349 million year-over-year.
While commercial and specialty activity saw quarterly operating revenues fall by $ 152 million, Anthem government activity saw revenues increase 16.3% year over year.
Related: Thanks to Medicaid, Medicare Growth, Anthem’s Operating Revenue Reaches $ 31.5 Billion
The Indianapolis-based insurer reported operating cash flow of $ 2.5 billion in the first quarter, due to “variation in working capital, staff growth in government operations and the increase in net profit, offset by the repeal of the health insurance tax in 2021 ”.
For its outlook, Anthem forecasted full-year operating income of $ 135.1 billion, medical membership in the range of 44.1 million to 44.7 million members, and operating cash flow exceeding 5. $ 7 billion.
Anthem released its earnings report less than a week after the company announced the launch of Hydrogen Health, LLC, a joint venture with K Health and Blackstone Growth.
Related: Anthem Teams Up With K Health And Blackstone Growth For Digital-First Health Tech JV
Anthem also projected that its full-year GAAP net income will exceed $ 25.10 per share, excluding approximately $ 1.05 per share of adverse net items. Its investment income is expected to be $ 820 million.
“Our first quarter results reflect strong execution and a continued focus on supporting our communities during the pandemic,” said Gail Boudreaux, CEO of Anthem, in a statement. “We expect the positive momentum from the first quarter to continue throughout the year, driven by our commitment to providing affordable healthcare and innovative solutions for those we serve.”
One of the most notable steps Anthem took came at the end of the first quarter, when the company announced plans to purchase myNEXUS, which manages home health benefits for payers.
Related: Anthem to Buy myNEXUS
Arielle Trzcinski, senior analyst at Forrester, said in an email to HealthLeaders that the acquisition of myNEXUS is “a necessary addition to the portfolio to meet the evolving needs of members and to be able to compete with traditional insurers and disruptive. “
“This acquisition is necessary to continue to compete with other large insurers such as Humana, which have long established partnerships and invested in companies like Heal and Dispatch that meet consumers at home to meet immediate care needs, as well as Amazon Care looming threat. an attractive alternative for employers to provide convenient care options for their employees, ”said Trzcinski. “Health insurers need to be member-centric, which means they need to meet the member where they are and provide care – not bring them to care. This will promote appropriate uses and improve outcomes. . ”
During the first quarter, the company repurchased 1.4 million common shares for $ 447 million, at a weighted average price of $ 316.06.
On Tuesday, Anthem’s audit committee declared a Q2 2021 dividend of $ 1.13 per share, annualized to $ 4.52 per share, which will be payable on June 25.
Related: Anthem to Provide All Employees with a $ 50 Incentive to Be Fully Vaccinated Against COVID-19
For complete financial information, see Filing of the anthem with the Securities and Exchange Commission.
Editor’s Note: This story has been updated to include comments from Arielle Trzcinski, Senior Analyst at Forrester.
Photo Credit: EAGAN, MN / USA – April 28, 2018: Anthem and health facility sign. Anthem, Inc. is an American health insurance company. / Editorial credit: Ken Wolter / Shutterstock.com