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Exhibit 99.1
ANTHEM REPORTS FOURTH QUARTER AND FULL YEAR 2020 RESULTS
Indianapolis, Ind.January 27, 2021Anthem, Inc. (NYSE: ANTM) reported fourth quarter 2020 results that reflected solid performance across the enterprise.
Despite uncertainties with the pandemic, Anthem delivered strong growth across all of our businesses in 2020 reflecting the diversity and strength of our portfolio and our unwavering commitment to those we serve, said Gail K. Boudreaux, President and CEO, Anthem, Inc. I am proud of all that we accomplished during this challenging time, and we remain focused on supporting our members, customers and communities as a trusted health partner.
As part of Anthems efforts to combat the global pandemic, address health inequities, and adapt to the ever-changing healthcare environment, the Company has remained focused on fostering deeper relationships and developing innovative solutions to meet critical needs for its stakeholders. Actions taken during 2020 to support our members, customers, care providers and local communities include:
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Anthem, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:
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The decrease in operating gain was primarily driven by costs associated with actions taken to support our members and providers in response to the pandemic and COVID-19 related care, as well as expenses for the BCBSA Litigation and business optimization initiatives recognized in 2020.
These quality improvement costs may be comprised of expenses incurred for: (i) medical management, including care coordination and case management; (ii) health and wellness, including disease management services for such conditions as diabetes, high-risk pregnancies, congestive heart failure and asthma management and wellness initiatives like weight-loss programs and smoking cessation treatments; and (iii) clinical health policy, such as identification and use of best clinical practices to avoid harm, identifying clinical errors and safety concerns, and identifying potential adverse drug interactions.
-65- New Accounting Pronouncements For information regarding new accounting pronouncements that were issued or became effective during the year ended December 31, 2020 that had, or are expected to have, a material impact on our financial position, results of operations or financial statement disclosures, see the "Recently Adopted Accounting Guidance" and "Recent Accounting Guidance Not Yet Adopted" sections of Note 2, "Basis of Presentation and Significant Accounting Policies," of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.
Our results of operations depend in large part on our ability to accurately predict and effectively manage healthcare costs through effective contracting with providers of care to our members, product pricing, medical management and health and wellness programs, innovative product design and our ability to maintain or achieve improvement in our CMS Star ratings.
Financial Condition We maintained a strong financial condition and liquidity position, with consolidated cash, cash equivalents and investments in fixed maturity and equity securities of $31,295 at December 31, 2020.
The decrease was further attributable...Read more
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Medicaid membership represents eligible members...Read more
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-48- Other Significant Items Business...Read more
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Liquidity and Capital Resources Introduction...Read more
This increase was partially offset...Read more
Since December 31, 2019, total...Read more
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While reduced or cancelled utilization...Read more
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Any future decline in our...Read more
Government Business Operating revenue increased...Read more
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IngenioRx Operating revenue and operating...Read more
Governmental action has required us...Read more
-56- The discussion of segment...Read more
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The annual HIP Fee, which...Read more
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Cost of products sold increased...Read more
We use various actuarial assumptions,...Read more
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As permitted by the guidance,...Read more
Dental membership increased primarily due...Read more
If the Court grants approval...Read more
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Goodwill and Other Intangible Assets...Read more
The increase in operating revenue...Read more
Should commercial paper issuance be...Read more
We believe these initiatives largely...Read more
In our analysis for the...Read more
Our benefit expense ratio decreased...Read more
We record this liability and...Read more
Our selling, general and administrative...Read more
As discussed above, these two...Read more
We have a $3,500 commercial...Read more
Net investment income decreased primarily...Read more
If our credit ratings are...Read more
At December 31, 2020, we...Read more
Cash disbursements result mainly from...Read more
Medicare membership increased primarily due...Read more
Vision membership increased due to...Read more
The above table does not...Read more
Under this approach, only accumulated...Read more
Fully-insured products are products in...Read more
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At December 31, 2020, we...Read more
At December 31, 2020, we...Read more
Medical Cost Trends: Our medical...Read more
For all other securities, cash...Read more
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We consider our most important...Read more
The customer's buying decision is...Read more
For securities not actively traded,...Read more
Estimates can require a significant...Read more
Medicare customers are Medicare-eligible individual...Read more
Plan assets include a diversified...Read more
These tests involve the use...Read more
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For mortgage-backed and asset-backed securities,...Read more
The discount rate reflects the...Read more
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Medicare Advantage membership also includes...Read more
The various health plan-related requirements...Read more
On January 26, 2021, our...Read more
Regulatory Trends and Uncertainties Federal...Read more
We believe we have adequately...Read more
Premium revenue is generated from...Read more
We obtain quoted market prices...Read more
All terms of the Subscriber...Read more
Our Level III securities primarily...Read more
This quarterly dividend is payable...Read more
We classify certain quality improvement...Read more
We believe we have adequately...Read more
Our analysis includes procedures such...Read more
Medicare Advantage SNPs are coordinated...Read more
These adjustments are made by...Read more
We believe we have an...Read more
The sum of goodwill and...Read more
Also, in the second quarter...Read more
For additional discussion regarding our...Read more
Other Operating revenue increased due...Read more
This acquisition aligned with our...Read more
Net income for the year...Read more
Under the guidance, goodwill and...Read more
Furthermore, goodwill and other intangible...Read more
Our impairment tests require us...Read more
Reportable Segments Results of Operations...Read more
Risk-Based Capital Our regulated subsidiaries'...Read more
The COVID-19 pandemic has impacted...Read more
We calculate the percentage of...Read more
This information is not intended...Read more
For additional information, see Part...Read more
Selling, general and administrative expense...Read more
Membership Our medical membership includes...Read more
We also calculate operating gain...Read more
Circumstances to be considered in...Read more
Operating gain is calculated as...Read more
Operating gain is calculated as...Read more
We may take additional actions...Read more
Operating revenue for the year...Read more
While considered benefit expense or...Read more
The COVID-19 pandemic has caused...Read more
We believe our assumption of...Read more
-52- FEHB members consist of...Read more
Financial Statements, Disclosures and Schedules
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Anthem, Inc. provided additional information to their SEC Filing as exhibits
Ticker: ANTM
CIK: 1156039
Form Type: 10-K Annual Report
Accession Number: 0001156039-21-000012
Submitted to the SEC: Thu Feb 18 2021 4:03:06 PM EST
Accepted by the SEC: Thu Feb 18 2021
Period: Thursday, December 31, 2020
Industry: Hospital And Medical Service Plans