Continued Pressure On Medicaid Business Dampens Some Enthusiasm About Anthem’s Better-Than-Expected Profits
Anthem's medical-loss ratio was higher than anticipated. The company said that the MLR has been pushed up by its Medicaid business, an issue it also flagged last quarter.
The Associated Press:
Anthem 3Q Profit Jumps 23%, Helped By Enrollment Gains
Anthem's third-quarter profit jumped 23%, and the Blue Cross-Blue Shield insurer raised its 2019 forecast after pulling in more people covered by Medicare Advantage and Medicaid. Anthem also gave investors an initial glimpse into next year's profit expectations. (Murphy, 10/23)
Reuters:
Health Insurer Anthem Signals Better-Than-Feared 2020 Earnings, Shares Rise
Anthem said on Wednesday medical costs in its Medicaid business, which manages health plans for low-income Americans, improved in the quarter even as overall costs rose and came in higher than Wall Street targets. "We're very positive about the overall Medicaid environment business going forward," Boudreaux said. The insurer reported third-quarter profit ahead of estimates and raised its full-year earnings forecast, riding on higher sales of its government-backed health plans. (Mathias and Humer, 10/23)
The Wall Street Journal:
Anthem Lifts Profit Target
The health insurer also gave some initial projections for 2020, suggesting that adjusted earnings per share growth will be around the low end of its 12% to 15% targeted rate. Anthem also said it still expects its new pharmacy-benefit manager, IngenioRx, to produce gains of at least $800 million, or around $2.30 per share, next year. (Wilde Mathews and Sebastian, 10/23)
