Anthem's profit rises as Medicaid memberships grow, preps for Cigna takeover

July 28, 2015

Anthem reported better-than-expected Q2 profits, driven by strong enrollments in its government business, particularly Medicaid. Revenue from government-sponsored plans rose 25.7% during the second quarter ended June 30, helped by an 11% rise in Medicaid membership. Anthem expects medical enrollment to grow by 750,000 to 950,000 this year, up 50,000 from its previous range, and has benefited from enrollment growth and improved medical cost performance. In the latest quarter, medical enrollment grew 3.4% from a year earlier to about 38.5 million as of June 30. Enrollment in its commercial and specialty business edged up 0.8% from a year earlier to 29.8 million members, while members in its government business grew 13.1% to 8.8 million.