Anthem, Inc. reported first-quarter 2021 results that reflect strong financial performance. Gail K. Boudreaux, president, and CEO, said the results reflect strong execution and a continued focus on supporting communities through the pandemic. “We expect the positive momentum in the first quarter to persist through the balance of the year, driven by our commitment to delivering affordable healthcare and innovative solutions for those we serve. At Anthem, we are modernizing our business while transforming it into a digitally-enabled platform for health,” he said.
- 1. Per share income
- GAAP net income was $6.71 per share in the first quarter, including net negative adjustment items of $0.30 per share. The adjusted net income was $7.01 per share. Days in Claims Payable was 46.9 days as of March 31, 2021, an increase of 3.5 days from December 31, 2020, and an increase of 5.0 days as compared to March 31, 2020.
- 2. Higher premium revenue
- Operating revenue was $32.1 billion in the first quarter of 2021, an increase of $2.7 billion, or 9 percent, versus the prior-year quarter and 10.7 percent after adjusting for the health insurance tax. The increase was driven by higher premium revenue due to growth in Medicaid and Medicare.
- 3. Benefit expense ratio
- The benefit expense ratio was 85.6 percent in the first quarter of 2021, an increase of 140 basis points versus the prior year quarter and a decrease of 10 basis points after adjusting for the health insurance tax.
- 4. Enrollments
- Medical enrollment totaled approximately 43.5 million members at March 31, 2021, an increase of 1.4 million lives, or 3.3 percent from the prior-year quarter. Government Business enrollment increased by 1.8 million lives compared to the prior-year quarter, attributable to Medicaid, reflecting organic growth, aided by the temporary suspension of eligibility recertification efforts in our markets, and growth in Medicare Advantage.
- 5. Operating cash flow
- Operating cash flow was $2.5 billion, or 1.5 times net income in the first quarter of 2021. Operating cash flow was primarily driven by changes in working capital, membership growth in government business, and higher net income, offset by the repeal of the health insurance tax in 2021.