Anthem grows net income 21% in Q3

Indianapolis-based Anthem reported higher net income in the third quarter of fiscal year 2017 as revenues grew.

Anthem saw revenues increase nearly 5 percent year over year in the third quarter ended Sept. 30 to $22.4 billion. Anthem attributed the growth to premium rate increases and higher enrollment in its Medicare, Medicaid and group businesses.

The payer also saw expenses increase year over year in the third quarter of 2017. This year, Anthem's expenses totaled $21.3 billion, up from $20.3 billion the year prior.

At the same time, Anthem saw its benefit expense ratio, or the amount it spends on medical claims compared to premium revenues, climb to 87 percent in the third quarter of this year, up from 85.5 percent in the same period last year. The payer pointed to the one-year waiver of the ACA's health insurance tax in 2017 as a main contributor.

Anthem ended the third quarter with net income of $746.9 million, up nearly 21 percent from $617.8 million in the third quarter of 2016. 

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