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The
raise follows a similar move by larger rival UnitedHealth last
week, which said it saw a decline in COVID-19 related expenses
during February and March as U.S. vaccination efforts helped
ease case burden.
Health insurers have been struggling to control medical expenses
despite lower demand for non-COVID services, as they have been
spending millions of dollars to improve customers' access to
testing, treatment and vaccination services against the
coronavirus.
Anthem's benefit expense ratio - the percentage of premiums paid
for medical services- was 85.6% in the first quarter, well below
Street estimates of 87.46%, according to Refinitiv IBES data.
The lower-than-expected ratio reflects reduced non-COVID
utilization and declining costs related to COVID-19 services,
Evercore ISI analyst Michael Newshel said in a client note.
For 2021, the company expects to record adjusted net profit of
more than $25.10 per share, up from its previous forecast of
over $24.50 per share.
Operating revenue from Anthem's pharmacy benefits management
business, IngenioRx, jumped 12.8% to $5.86 billion in the
quarter, driving the company's operating revenue up about 9% to
$32.10 billion.
Operating revenue from its top-earning business segment, which
sells government-backed Medicare and Medicaid plans, rose 10.4%
to $19.28 billion.
Excluding items, Anthem earned $7.01 per share in the quarter
ended March 31, compared with analysts' average estimate of
$6.51.
(Reporting by Manojna Maddipatla in Bengaluru; Editing by
Shinjini Ganguli)
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