Anthem’s first quarter 2022 earnings report showed that Anthem’s benefit expense ratio was 86.1%, lower than its expected ratio of 87.8%. An insurer’s benefit expense ratio represents the insurer’s spending on claims compared with its earnings from premiums. Anthem’s lower than expected benefit expense ratio means that it paid less to providers for medical costs than it had anticipated. These reduced payments to providers fueled Anthem’s stronger than expected first quarter profits of $2.4 billion, leading Anthem to increase its full-year adjusted net income to more than $28.40 per share.
Anthem is one of the nation’s largest health insurers, providing health benefits to one in eight Americans through a number of subsidiary and affiliated companies. Anthem is the largest Blue Cross and Blue Shield licensee, operating Blues plans in fourteen states.
Whatley Kallas, LLP’s previous article on Anthem’s first quarter 2022 earnings is linked here.