The Indianapolis-based insurer reported medical enrollment totaling 42.9 million members at the end of 2020, up 4.7% year-over-year.
Anthem Inc. reported an operating income of $31.5 billion for Q4 2020, boosted by continued growth in its Medicaid and Medicare markets, according to the company's latest earnings report released Wednesday morning.
IngenioRX, the insurer's PBM, produced an operating revenue of $5.8 billion during Q4, up 81.4% year-over-year. For the year, IngenioRX reported an operating revenue of $21.9 billion, up 305.6% year-over-year.
While the Commercial & Specialty business saw both its quarterly and yearly operating revenues drop slightly, Anthem's Government business saw revenues increase 15.7% and 14.3% over the same respective periods.
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The Indianapolis-based insurer recorded an operating cash flow of $3.8 billion during Q4, up $2.5 billion compared to Q4 2019, due in part to the "timing of working capital changes" and "growth in premium revenue due to the return of the health insurance tax in 2020 as well as membership growth in our Government business."
For its outlook, Anthem projected a full-year operating revenue of $135.1 billion, medical membership in the range of 44.1 million to 44.7 million members, and an operating cash flow exceeding $5.7 billion.
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Anthem also projected its full-year GAAP net income will be greater than $23.51 per share and its investment income will be $940 million.
C-suite perspective:
"Despite uncertainties with the pandemic, Anthem delivered strong growth across all of our businesses in 2020 reflecting the diversity and strength of our portfolio and our unwavering commitment to those we serve," Gail Boudreaux, CEO of Anthem, said in a statement. "I am proud of all that we accomplished during this challenging time, and we remain focused on supporting our members, customers and communities as a trusted health partner."
Regarding its membership, Anthem reported medical enrollment totaling 42.9 million members at the end of 2020, up 4.7% year-over-year.
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During Q4, the company repurchased 4.4 million shares of common stock for $1.4 billion. For the year, repurchased 9.4 million shares for $2.7 billion.
On Tuesday, Anthem's audit committee declared a Q1 2021 dividend of $1.13 per share, annualized to $4.52 per share, which will be payable on March 25.
For complete financial information, review Anthem's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: Atlanta, Georgia, USA - January 16, 2020: Anthem blue cross and blue shield sign on the building in Atlanta, Georgia, USA. Anthem, Inc., is a provider of health insurance in the United States. / Editorial credit: JHVEPhoto / Shutterstock.com