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This statistic highlights Anthem Inc’s Revenue by Segment, split across Administrative fees and other revenue, Premiums, and Product revenue segments, reported quarterly since Q1 2016.
Anthem Inc’s Revenue by Segment
|Revenue by Segment||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
|Administrative fees and other revenue||$1.66||$1.70||$1.80||5.06%|
(All figures are in billions, except percentages)
The total revenue earned peaked in the latest quarter at $35.548 billion. QoQ growth from Q2 to Q3 2021 was 6.82%. From the third quarter of 2020 to 2021, revenue grew year-over-year by 15.98%.
This segment’s revenue is generated from contracts that are fully insured, where they indemnify their policyholders against covered health costs and life insurance benefits. For their completely insured products, a premium is charged and risk for the cost of covered healthcare services is assumed. Under self-funded products, Anthem charges a fee for services, and the plan sponsor funds or employer reimburses them for healthcare costs. A premium is also charged for underwriting stop-loss insurance for employers that maintain self-funded health plans. Pharmacy Benefits Management (PBM) services include the fulfillment of prescription drugs.
Premiums are the highest revenue contributor. Approximately 86% of the total revenue is generated by this segment. In the given timeline, revenue gradually advances with every passing quarter. In Q3 2021, revenue derived from premiums was $30.395 billion. This marked a QoQ (from Q2 to Q3 2021) growth of 6.53%. YoY growth from Q3 2020 to 2021 was 15.17%.
This segment is a representation of services performed by IngenioRx (which is their pharmacy benefits manager) for PBM customers that are unaffiliated and includes ingredient costs (net of discounts or rebates), including an administrative fee, and co-payments that are made by customers. Unaffiliated PBM customers comprise self-funded groups which contract with IngenioRx for PBM services and external customers that are beyond the health plans that they own.
Product revenue incrementally increases over time. In the third quarter of 2020, revenue earned was $2.598 billion. This increased YoY by 29% thereby grossing $3.353 billion in the latest quarter. Revenue increased QoQ (from Q2 to Q3 2021) by 10.22%.
Administrative fees and other revenue
These come from the company’s self-funded customers for their transaction processing or realization of network discount savings, revenues from Anthem’s Medicare processing business, as well as revenues derived from other health-related businesses, also including disease management programs and other miscellaneous income. This segment includes revenue from specific group contracts which provide for the group to be at risk for all or with supplemental insurance agreements, a portion of their claims experience. Anthem charges administrative fees to these self-funded customer groups—based on the number of members in a group or their claim experience. This segment also includes the amount received for some government programs or Medicare administration.
Though this segment’s revenue increases with the passing quarters, the revenue mix during each quarter remains constant at around 5%. The highest revenue was therefore in the latest quarter at $1.8 billion. The revenue grew from the second to the third quarter in 2021 by 5.6%. YoY growth from the third quarter in 2020 to that in 2021 was 8.5%.
About the Company
Anthem Inc, was founded by Gail Koziara Boudreaux in 1944. Being one of the largest health benefits companies in the United States, they are known for their medical membership, and as of 31st December 2020, for serving around 43 million medical members through their affiliated health plans. They deliver multiple leading health benefit solutions through a great portfolio of health plans and related services that are integrated, along with a broad range of special products and flexible spending accounts. In Q2 2019, the company began to use IngenioRx—their pharmacy benefits manager, that market and offer PBM services to their countrywide affiliated health plan customers, and also to those who are outside of their company-owned health plans. The company is listed on NYSE under the ticker symbol ‘ANTM’.
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