Anthem Posts Better Than Expected First-Quarter Profits Even As Markets Roil Over Possibility Of ‘Medicare For All’
Still, analysts at J.P. Morgan wrote in a note that “the modest ‘noise’ in the numbers pales in comparison to the political risk that has been discounted into the stock” so far this year. Other industry news focuses on Athenahealth and Humana.
Reuters:
Anthem Beats Earnings Estimates, Outlines Plans For Pharmacy Benefits Unit
Anthem Inc on Wednesday posted a better-than-expected quarterly profit and laid out its plans to transition most customers to its revamped pharmacy benefits business this year. Based on its first quarter results, including higher than anticipated revenue growth, the company said it now expects 2019 adjusted earnings to exceed $19.20 per share, up from its prior view of more than $19.00. (4/24)
The Wall Street Journal:
Anthem Raises Outlook Amid Concerns Over Political Environment
The insurer said it now expects per-share profit to be greater than $18.27 for 2019, up from its previous forecast of greater than $18. Analysts polled by Refinitiv expect full-year earnings of $17.88 a share. Profit rose 18% in the first quarter, lifted by higher revenue from solid membership growth and lower selling, general and administrative expenses. In Anthem’s government segment, the company flagged “elevated medical cost experience in some states” in the Medicaid business, and also said a decreased operating gain compared with last year’s quarter was tied to some adjustments that had boosted the 2018 Medicaid numbers. (Wilde Mathews and Chin, 4/24)
Modern Healthcare:
Anthem Revenue Buoyed By Membership Growth
Anthem reported higher revenue and profit in the first quarter of 2019 as it grew membership across its business lines. The Indianapolis-based health insurer experienced the fastest growth in its government-funded programs. Its Medicare Advantage membership, including Medicare supplement plans, rose 15.6% to a little more than 2 million in the three months ended March 31 compared with the same period a year ago, driven by supplemental benefits. (Livingston, 4/24)
Modern Healthcare:
Athenahealth Lays Off Nearly 4% Of Workforce Two Months After Acquisition
Athenahealth laid off less than 4% of its employees Tuesday as part of its restructuring. The layoffs come two months after Veritas Capital and Elliott Management Corp.'s Evergreen Coast Capital completed their $5.7 billion purchase of Athenahealth in February. Athenahealth did not comment on departments or locations affected in the layoffs. (Cohen, 4/24)
Modern Healthcare:
Humana Announces Virtual Primary-Care Plan
Humana and telehealth company Doctor on Demand will launch a new health plan design allowing employers and employees to receive primary care predominantly through virtual visits. The plan, called On Hand, allows Humana members to avoid the doctor's office and access primary-care services virtually from one Doctor on Demand physician, with access to urgent care, preventive care and behavioral health services. (Livingston, 4/24)
