Anthem's Parent Says U.S. Employers Still Look Strong

Revenue and Cost Trends

Elevance reported in its earnings release that overall revenue had increased 17% in the second quarter and that Medicare Advantage plan enrollment increased 6.7%, to 1.9 million, in spite of predictions in the fall that expanding Medicare Advantage plan market share would be difficult.

But executives warned analysts that they now see COVID-19-related costs as a challenge that could last for some time.

Boudreaux said the country has been in the pandemic for several years.

“COVID is not going to zero,” she said. “Ultimately, as we think about our pricing in the commercial market, we’re not changing anything about the approach or philosophy that we’ve used historically. We’re always pricing to our forward view of costs.”

This year, Boudreaux said, COVID-19 costs hit an all-time high in January and February.

The Numbers

The second quarter ended June 30.

Elevance is reporting $1.8 billion in net income for the second quarter on $38 billion in revenue, compared with $1.7 billion in net income on $33 billion in revenue for the second quarter of 2021.

Anthem ended the quarter providing or administering health coverage for 47 million people, or 7.5% more than it was covering a year earlier.

Here’s what happened to the number of people covered by specific types of Anthem health coverage products between the second quarter of 2021 and the latest quarter:

Individual commercial: 803,000 (up from 738,000)
Medicare Advantage: 1.9 million (up from 1.8 million)
Medicare supplement plans: 942,000 (up from 936,000)
Self-funded employer plans: 27 million (up from 26 million)
Fully insured employer plans: 4 million (up from 3.9 million)

The number of life and disability members rose 1%, to 4.8 million.

Enrollment in the company’s dental plans increased 0.2%, to 6.6 million, and enrollment in dental plans that Anthem administers, rather than insures, increased 6.1%, to 1.6 million.

Pictured: Gail Boudreaux. (Photo: Al Drago/Bloomberg)