Anthem 3Q Profits Beat Estimates As Insurance Enrollment Increases
In the meantime, HealthSouth's third-quarter report was not as positive as the company missed earnings forecasts and cut its overall 2015 outlook. And in other marketplace news, UnitedHealthcare expands a high-profile test of whether bundled chemotherapy payments can help slow rising cancer treatment costs.
The Associated Press:
Anthem Reports Increase In Profit As Customer Base Grows
Anthem increased third-quarter profit by 4 percent and beat Wall Street forecasts as the number of people the health insurer covers edged slightly higher, driven by enrollment in government health plans. The Blue Cross-Blue Shield insurer also boosted its adjusted 2015 net income forecast for the third time this year, to $10.10 to $10.20 per share. That's up from its July forecast for more than $10 per share, but still below the $10.20 Wall Street is anticipating. The company cited lower profit margins expected in the fourth quarter. (10/28)
The Wall Street Journal:
HealthSouth Earnings Miss Expectations
HealthSouth Corp. cut its 2015 outlook and reported third-quarter earnings rose 1.2% as higher costs masked revenue growth. Shares fell 9.1% to $33 in recent after-hours trading as per-share earnings missed expectations and the company cut its 2015 guidance to reflect expenses related to recent acquisitions and expectations that pricing pressures, rising costs and bad-debt expense trends in its inpatient rehabilitation segment will continue in the current quarter. (Stynes, 10/28)
Kaiser Health News:
UnitedHealthcare Expands Effort To Rein In Rising Costs Of Cancer Treatment
UnitedHealthCare said it will expand its high-profile test of whether bundled payments for chemotherapy can help slow rising cancer treatment costs, part of a growing effort by insurers to find new ways to pay for care. Results from United’s initial pilot test – reported last year – were puzzling: The overall cost of cancer care for patients in the study dropped by 34 percent, even as spending on chemotherapy drugs spiked significantly. (Appleby, 10/29)