The Indianapolis-based insurer's medical enrollment totaled 41 million members.
Anthem Inc. experienced increases to its net income and operating revenue in Q3, supported by its medical enrollment reaching 41 million members, according to the company' earnings report released Wednesday morning.
Anthem reported a net income of $1.18 billion, a 23% increase year-over-year, along with a operating revenue of $26.4 billion, up 15% compared to Q3 2018.
The Indianapolis-based insurer projects its year-end net income to exceed $18.45 per share, with an adjust net income above $19.40 per share, both increases to the company's financial guidance.
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As Anthem heads into the final quarter of 2019, leadership stated that the company is on strong financial footing and expects to realize future opportunities with the expansion of its new pharmacy benefit manager, IngenioRx, in 2020.
C-SUITE PERSPECTIVE:
"Anthem's third quarter results showed continued membership growth – together with strong operating revenue growth – giving us great momentum as we head into 2020," Gail Boudreaux, CEO of Anthem, said in a statement. "I am pleased with our success to date as we remain committed to delivering a simpler, more affordable and more personalized healthcare experience for those we serve."
Anthem experienced a strong quarter of membership growth across its various segments, despite some declines in the commercial and specialty business segment.
The insurer's Medicaid membership was nearly 7.3 million members, up 8.3% year-over-year, while the total Medicare membership rose 14.6% to just over 2 million members.
Unlike Q2, Anthem's total operating gain represented an improvement compared to this time last year, totaling $1.5 billion.
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Two major developments for Anthem during Q3 was its involvement in the Centene-WellCare Health Plans merger proceedings and ongoing contentions in the state of Connecticut.
In late September, Anthem announced that it would purchase Medicaid operations in Missouri and Nebraska from WellCare, as the Tampa-based insurer sought regulatory approval in its $17.3 billion deal to become part of St. Louis-based Centene.
A week later, Connecticut's congressional delegation issued a letter to Anthem Blue Cross and Blue Shield President Jill Hummel asking about the company's decision to terminate some doctors from its network ahead of the start of the open enrollment period.
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Anthem's stock reacted positively to the Q3 financials, trading up slightly during early morning trading.
ADDITIONAL ANTHEM Q3 EARNINGS REPORT HIGHLIGHTS:
- In Q3, Anthem posted an operating cash flow of $1.7 billion, an increase of $600 million year-over-year.
- On Wednesday, the company distributed its Q3 dividend totaling $204 million.
- Anthem repurchased 2.4 million shares of common stock in Q3 for $644 million.
- The insurer's 'other' business segment, which includes IngenioRx, produced $2.5 billion in revenues for Q3.
For complete financial information, review Anthem Inc.'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: Murcia, Spain; Oct 23, 2018: Anthem logo in phone with earnings graphic on background. Anthem, Inc. is an American health insurance company - Image / Editorial credit: Pedro Martinez Valera / Shutterstock.com