Anthem's profit declined in the fourth quarter of fiscal year 2020 as the insurer saw greater expenses related to the COVID-19 pandemic, including higher testing and treatment costs.
Anthem posted revenues of $31.8 billion in the fourth quarter of 2020, up 16.1 percent from $27.4 billion in the same period a year prior. Revenue increases were driven by gains in membership, especially among Medicare Advantage and Medicaid plans.
However, Anthem's fourth-quarter expenses grew more than its revenue. In the fourth quarter of 2020, the insurer recorded $31.2 billion in expenses, up 18.6 percent from $26.3 billion the previous year, thanks in large part to costs related to the pandemic.
Anthem ended the fourth quarter with a $551 million profit, down 41 percent from the $934 million it reported in the last quarter of 2019. Anthem ended 2020 with a profit of $4.6 billion, down 4.9 percent from $4.8 billion.
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