Anthem Announces Acquisition, Profit Increase
Anthem ranked highest among Indiana companies on the 2016 Fortune 500 list.
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Anthem Inc. (NYSE: ANTM) is reporting third quarter net income of $746.9 million, compared to $617.8 million during the same period the previous year. The company has also announced the acquisition of privately-held Medicare Advantage organization America’s 1st Choice.
America’s 1st Choice offers HMO products under its Florida-based Freedom Health and Optimum brands and operates America’s 1st Choice of South Carolina. Anthem Chief Executive Officer Joe Swedish says the acquisition "fits well with our growth objective" and continues the company’s focus on strengthening its Medicare Advantage product portfolio. America’s 1st Choice serves about 130,000 members in Florida and South Carolina.
Anthem says operating revenue increased by $1 billion quarter-over-quarter, growing from $21.1 billion to $22.1 billion. The company says the growth is due in part to premium rate increases "to cover overall cost trends across our business." Medical enrollment declined by 130,000 in the quarter. However, Anthem is reporting total enrollment of 40.3 million as of September 30, 2017, which is an increase of 347,000 members over the same date the previous year.
Last week, Anthem announced the launch of its own pharmacy benefits management company, IngenioRx, which will begin serving customers in 2020 after the company’s current PBM contract expires.