Anthem's $1.8B 1st quarter: 11 things to know

Anthem's operating revenue grew by 18 percent and the company added over 3 million members from the prior-year quarter, according to its first-quarter 2022 earnings report released April 20.

"Our strong momentum across all our businesses is evidence that our transformation to become a lifetime, trusted health partner continues to drive our growth and accelerate our capabilities focused on whole person health," President and CEO Gail Boudreaux said. "The shared commitment of our more than 98,000 associates to our purpose to improve the health of humanity, is both profound and powerful, and inspires a culture of performance that remains focused on customers and communities we serve."

Eleven key takeaways from the report:

  • The company's net income grew to nearly $1.8 billion from $1.67 billion in 2021, a 7.7 percent increase.
  • Operating revenue was $37.9 billion in the first quarter of 2022, an increase of $5.8 billion, or 18 percent, from the prior-year quarter. The increase was driven by membership growth in Medicaid, the acquisitions of MMM and Paramount Advantage, growth in Medicare Advantage and commercial risk-based membership, premium rate increases to cover overall cost trends, and growth in pharmacy product revenue within IngenioRx.
  • Anthem recorded net losses of $151 million in 2022. During the first quarter of 2021, the company recorded net losses of $4 million.
  • Medical enrollment totaled 46.8 million members as of March 31, an increase of 3.3 million from the prior-year quarter. 
    • Medical enrollment increased by 1.4 million lives in 2022 and was driven by organic growth in commercial fee-based business, the acquisition of Paramount Advantage's Medicaid members in Ohio, and growth in Medicare Advantage enrollment.
    • Government business enrollment increased by 2.1 million lives compared to the prior-year quarter. The increase was driven by growth in Medicaid and aided by the suspension of eligibility recertification efforts in Anthem markets, the acquisitions of MMM and Paramount Advantage, the launch of HealthyBlue in North Carolina, and organic growth in Medicare Advantage. 
    • Commercial and specialty business enrollment increased by 1.1 million year over year and was primarily driven by strong sales in both fee-based and risk-based businesses.
  • Anthem paid a quarterly cash dividend of $1.28 per share in 2022, representing a distribution of cash totaling $309 million.
  • Anthem repurchased 1.2 million shares of its common stock for $545 million in 2022 at a weighted average price of $453.32. As of March 31, it had approximately $3.6 billion of board-approved share repurchase authorization remaining.
  • GAAP net income was $7.39 per share in the first quarter, including net negative adjustment items of $0.86 per share. Adjusted net income was $8.25 per share, an increase of 17.7 percent from $7.01 in the same 2021 period.
  • Anthem expects GAAP net income to be greater than $26.43 per share, including approximately $1.97 per share of net unfavorable items, and expects full-year adjusted net income to be greater than $28.40 per share, based on stronger than expected first-quarter results.

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