Anthem posts $1.1B profit as membership falls 888K

Health insurer Anthem reported net income of $1.1 billion in the second quarter of fiscal year 2018, up 23 percent from $855.3 million in the same period last year.

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Anthem saw operating revenue increase 2.3 percent to $22.7 billion in the second quarter of 2018 compared to the same period a year before. The health insurer attributed the improvement to premium increases, the return of the health insurance tax in 2018 and acquisitions. Anthem’s decreased footprint in the ACA’s individual market in 2018 partially offset revenue gains.

At the same time, Anthem’s medical enrollment fell by 888,000 members year over year to 39.5 million members. A large contributor to this decline was Anthem’s pullback in the ACA individual market, coupled with membership losses in its Medicaid business. However, Anthem saw Medicare enrollment climb by 254,000 members year over year, influenced by acquisitions like its February takeover of America’s 1st Choice, a privately held for-profit Medicare Advantage plan in Florida.

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