Anthem Inc., the Indiana-based health insurance company, reported a first-quarter profit that exceeded Wall Street’s estimates, the company said on Wednesday. Shares of Anthem Inc. have leaped by 2.7 percent and reached $257.39.
Last year proved poor for the health insurance sector, and it underwent absolute upheaval when major competitors Cigna and Aetna concluded agreements with U.S. pharmacy benefit managers.
The company operates one of the most reliable health plans in America, known as Blue Cross Blue Shield, across 14 states. Anthem has also revamped the structure of its pharmacy benefits business and stopped being dependent on Express Scripts for managing operations. By the second quarter, Anthem will launch its new company, IngenioRx; CVS Health Corp. will support the initiative.
Considering Anthem’s expectations, adjusted earnings for the company should be more than $19.20 per share for the current year, which even exceeds its previous estimates.
The count of members who has purchased health plans rose by 1.2 million and reached a total of 40.8 million. The rise is driven by growth in government business, which offers health and medical plans for poor citizens.
The company’s market share is steered by its Medicare, Medicaid, and commercial businesses, which also helped to boost its earnings forecast and beat Wall Street estimates. An industry analyst hinted that earnings are expected to grow higher.