Anthem 4th quarter profit jumps nearly $190 million over 2015
Medical enrollment increased by about 1.3 million members in 2016, or 3.4 percent, totaling about 39.9 million members.
Anthem's fourth quarter profits exceeded expectations, the insurer announced Wednesday, reporting $368.4 million, compared to $180.9 million in the last three months of 2015.
"Our fourth quarter 2016 core earnings and financial metrics tracked well versus our expectations, reflecting the efforts of all of our associates to improve affordability on behalf of our members," said President and CEO Joseph Swedish.
Anthem also ended 2016 with better than expected enrollment, said John Gallina, executive vice president and CFO.
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Medical enrollment increased by about 1.3 million members in 2016, or 3.4 percent, totaling about 39.9 million members as of the end of 2016.
For the year, Anthem reported profits of $2.46 billion, as compared to $2.56 billion in 2015.
Last year, Anthem's bottom line suffered from losses in the Affordable Care Act market due to higher than expected medical costs from beneficiaries who were sicker than projected.
Anthem is still facing higher medical costs in the individual business and also in Medicaid, it said.
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Medicaid business, notably in Iowa, exceeded the annual premium rate adjustments and higher membership, Anthem said.
Anthem released its fourth quarter earnings as it awaits a court decision on its $54 billion proposed merger with Cigna. Should the deal be scuttled before the April 30 deadline, for reasons outlined in a merger contract, Anthem will owe Cigna $1.8 billion.
Twitter: @SusanJMorse
