Insurers stick to 2020 outlooks as COVID-19 pandemic spreads

Anthem and Humana are the latest health insurers to announce that they are sticking with their 2020 earnings forecasts, even as the COVID-19 pandemic forces companies in many other sectors to abandon outlooks

By

TOM MURPHY AP Health Writer

April 29, 2020, 1:36 PM

2 min read

2 min read

Anthem and Humana became on Wednesday the latest health insurers to stick with their 2020 earnings forecasts, even as the COVID-19 pandemic forces companies in many other sectors to abandon outlooks.

The pandemic has shut down large portions of the economy and made annual forecasts mostly worthless. But insurers say they are still waiting to learn how the virus will hit their businesses.

The pandemic spread too late in the first quarter in the United States to have much of an impact on their latest reports.

However, the industry could feel more of a pinch later this year. It could lose business from the wave of layoffs sweeping the country. That may cut enrollment in employer-sponsored health insurance.

Insurers are gaining at least a temporary break because elective surgeries have been cancelled or postponed and fewer people are going to the hospital. But many of those procedures are expected to be rescheduled later this year.

And Humana noted Wednesday that any gain it received from that was balanced in part by a rise in pharmacy costs because the insurer allowed customers to refill their prescriptions early.

The Blue Cross-Blue Shield insurer Anthem still expects adjusted earnings to be greater than $22.30 per share this year.

Analysts forecast, on average, earnings of $22.01 per share, according to FactSet.

Indianapolis-based Anthem Inc. is the nation’s second-largest insurer, covering more than 42 million people in several big states including New York and California.

Medicare Advantage coverage provider Humana Inc. said it still expects adjusted earnings in the range of $18.25 to $18.75 this year “while acknowledging the inherent uncertainty surrounding the ongoing crisis.”

Wall Street predicts earnings of $18.46 per share.

The nation’s largest health insurance provider, UnitedHealth Group Inc., and Medicaid specialist Centene Corp. also reaffirmed their forecasts earlier this month.

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Follow Tom Murphy on Twitter: @thpmurphy

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