Anthem individual insurance plans bid goodbye to Affordable Care Act (ACA) markets across the nation to focus on the growth of its Medicare Advantage business, an experience more sweet than bitter; the insurance giant’s third quarter profits were up 29 percent, year over year.
Enrollment in Anthem’s insurance plans may have taken a dip of over a quarter million, but a $960 million net income growth cushioned the fall. The insurer stated last week, “the enrollment decline was driven by a reduced footprint in the individual ACA-compliant marketplace and membership losses in Local Group and Medicaid.” The decline was offset by a growth in Medicare enrollment by over 200,000 members, with an increase in interest toward Medicaid Advantage plans from seniors.
Anthem is the largest insurer of the 36 different, independently run franchises of the Blue Cross Blue Shield Association, which serves every state. In Arizona, MA shoppers can purchase CareMore Classic, Smart Value and Access HMO products in 2019, Anthem products under its Amerigroup brand.
Because it was unable to effectively manage costs in the ACA exchange, Anthem pulled out and focused its operations on meeting the needs of a growing Medicare Advantage population and boosting its star ratings.
“We remain committed to accelerating growth and will continue to invest in innovative, effective, and scalable healthcare solutions designed to improve the quality and total cost of care for our members,” said president and CEO Gail Boudreaux in a statement following the release of its third quarter report.
Medicare Advantage plans offer supplemental benefits to Medicare recipients, and according to Forbes, insurance companies have proven successful in lobbying Congress to allow MA insurers more opportunities to expand their menu of options.
For their third quarter earnings report, visit Anthem.
And check out Forbes’ article on Anthem’s Medicare business.