Morning Briefing
Summaries of health policy coverage from major news organizations
Anthem's 2Q Earnings Beat Expectations
Health insurance provider Anthem said Wednesday its second quarter net income rose 18% to $859.1 million as health care costs and medical enrollment by new members surged. After adjusting for some items, earnings per share totaled $3.10, beating analysts’ estimate of $2.74. (Yu, 7/29)
The company said it now expects medical enrollment to grow by 750,000 to 950,000 this year, up 50,000 from its previous range. Anthem has benefited from enrollment growth and improved medical cost performance lately. In the latest quarter, medical enrollment grew 3.4% from a year earlier to about 38.5 million as of June 30. Enrollment in its commercial and specialty business edged up 0.8% from a year earlier to 29.8 million members, while members in its government business grew 13.1% to 8.8 million. (Dulaney and Wilde Mathews, 7/29)
Anthem has pumped up its 2015 forecast again after earnings jumped more than 17 percent in its most recent quarter, helped by a surge in government money. The Blue Cross-Blue Shield carrier now expects 2015 adjusted earnings to top $10 per share, which is up from an upgraded forecast in April to greater than $9.90 per share. (7/29)
Humana Inc., which has agreed to sell itself to Aetna Inc., on Wednesday reported a better-than-expected 25% jump in profit in its second quarter, though revenue disappointed as the health insurer faces challenges in its Medicare Advantage business. Shares slipped 0.3% in premarket trading. (Dulaney, 7/29)
In the background -
The leaders of the top five health insurers periodically get together to discuss policy issues, Aetna Inc. Chief Executive Mark T. Bertolini told investors in a private meeting earlier this month. The group had a nickname, he joked: the G5. Soon, that could be down to the G3. (Wilde Mathews, 7/29)