Anthem saw its third quarter profit significantly fall as benefit expenses and other costs grew for the health insurer.
Three things to know:
1. Anthem's total revenue grew 16.8 percent in the three months ended Sept. 30 compared to the same period a year prior, from $26.7 billion to $31.2 billion. The increase was driven by higher premium revenue in its Medicaid and Medicare managed care lines, and more revenue from its pharmacy product through the launch of IngenioRx.
2. An uptick in revenue helped the insurer weather increased benefit and administrative costs. Anthem's total expenses were up 22 percent in the most recent quarter to $30.8 billion. Anthem said the year-over-year uptick in expenses reflect costs related to COVID-19 and a continued recovery in healthcare utilization. Anthem also recorded a $594 million charge for a Blue Cross Blue Shield Association litigation settlement that has yet to be finalized.
3. Anthem ended the quarter with a $222 million profit, down 81.2 percent from the $1.2 billion it posted in the same period a year prior. Still, year-to-date, the insurer's profit is higher: $4 billion compared to $3.9 billion in the first nine months of 2019.