Anthem Q2 income rises 18%, beats estimates

Health insurance provider Anthem said Wednesday its second quarter net income rose 18% to $859.1 million as health care costs and medical enrollment by new members surged.

After adjusting for some items, earnings per share totaled $3.10, beating analysts’ estimate of $2.74.

Operating revenue increased 8.4% to $19.8 billion, reflecting "premium increases to cover overall cost trends" and higher enrollment in the Medicaid and commercial self-funded insurance businesses, Anthem said.

As of the end of the second quarter, Anthem provided medical insurance services to about 38.5 million members, a 3.4% increase. Medicaid and Medicare enrollment rose by 940,000 and 50,000 members, respectively.

The commercial and specialty business enrollment -- referring mostly to businesses that self-fund their medical expenses -- increased by 237,000. Federal employee enrollment was up by 28,000.

For 2015, Anthem expects net income "to be greater than $9.55 per share." Medical membership is expected to be in the range of 38.25 million to 38.45 million. It estimates operating revenue will be about $78 billion.