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Anthem Medicare Plans Achieve Significant 2018 Medicare Star Ratings

Press Release October 11, 2017
More than 60 Percent of Medicare Advantage Health Plan Membership Will Be in Plans Rated Four Stars or Better

INDIANAPOLIS --(BUSINESS WIRE)--Oct. 11, 2017-- Anthem, Inc. (NYSE:ANTM) is pleased to announce that its Medicare Advantage health plan affiliates have improved their Medicare Star Ratings. The Centers for Medicare and Medicaid Services (CMS) today released their latest Star Ratings, which give health plans scores for the quality and performance of their services. Heading into 2018, more than 60 percent of the Medicare Advantage members in Anthem’s affiliated health plans will be enrolled in plans that achieved four stars or better, with five stars being the best rating. The Star Ratings provide further confirmation that Anthem’s multi-year focus on improving the quality of its Medicare offerings is delivering real benefits for members. Additionally, the Company aims to further improve the Stars performance of its health plans moving into 2019.

Today’s announcement is a significant achievement, as the ratings represent the highest percentage garnered by the Company and its health plan affiliates since the start of CMS’ Medicare Star Ratings program. According to the 2016 Star Ratings, only 22 percent of members were enrolled in four-star or better plans.

“Over the last four years, Anthem has made a commitment to improve the performance and quality of our Medicare platform, ensuring we provide greater access to high-quality, affordable health care,” said Joseph R. Swedish, Chairman, President and Chief Executive Officer, Anthem. “As we look ahead, we will continue to maintain a diligent focus on innovating our Medicare Advantage product portfolio and delivering the highest quality plans for current members and those we hope to have the privilege of serving in the future.”

In addition, 2018 also marks the first time at least one of Anthem’s affiliated health plans will be rated five stars by CMS’ Medicare Star Ratings program. The Company’s affiliates will be offering five-star PPO plans in the New Hampshire , Georgia , and Kentucky markets.

Anthem and its affiliated health plans have made considerable investments in the Medicare programs offered to consumers, broadening the product portfolio, expanding services areas, increasing local health plan staffing, and deepening the level of provider and member engagement. As a result of these initiatives, Anthem anticipates more meaningful growth in its Medicare business in 2018, compared to previous years. In addition, the positive Star Ratings further reflect Anthem’s continued investment in strengthening the Company’s Medicare program.

The CMS’ Medicare Star Rating system rates the quality and performance of Medicare Advantage and Medicare prescription drug plans to help consumers and their families compare plans. Star Ratings are calculated each year using a scale of one to five stars (with five being the best), and may change from year to year.

Medicare Advantage plans are rated on their ability to help members stay healthy, assist members in managing chronic conditions, ensure positive member experiences with their health plan, achieve member satisfaction, and provide effective customer service. Additionally, Medicare Advantage and Medicare Advantage Prescription Drug plans are rated on how well they provide medication coverage along a number of factors: customer service, member complaints, member experience with drug plan, and drug safety. The annual Medicare Star Ratings are posted online at

Medicare evaluates plans based on a 5-star rating system. Star Ratings are calculated each year and may change from one year to the next.

About Anthem, Inc.

Anthem is working to transform health care with trusted and caring solutions. Our health plan companies deliver quality products and services that give their members access to the care they need. With over 74 million people served by its affiliated companies, including more than 40 million within its family of health plans, Anthem is one of the nation’s leading health benefits companies. For more information about Anthem’s family of companies, please visit

Forward-Looking Statements

This document contains certain forward-looking information about us that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. These risks and uncertainties include: those discussed and identified in our public filings with the U.S. Securities and Exchange Commission , or SEC ; increased government participation in, or regulation or taxation of health benefits and managed care operations, including, but not limited to, the impact of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, or Health Care Reform, and the impact of any future modification, repeal or replacement of Health Care Reform; trends in health care costs and utilization rates; our ability to secure sufficient premium rates including regulatory approval for and implementation of such rates; our participation in federal and state health insurance exchanges under Health Care Reform, which have experienced and continue to experience challenges due to implementation of initial and phased-in provisions of Health Care Reform, and which entail uncertainties associated with the mix and volume of business, particularly in our Individual and Small Group markets, that could negatively impact the adequacy of our premium rates and which may not be sufficiently offset by the risk apportionment provisions of Health Care Reform; the ultimate outcome of litigation between Cigna Corporation (“Cigna”) and us related to the merger agreement between the parties, including our claim for damages against Cigna , Cigna’s claim for payment of a termination fee and other damages against us, and the potential for such litigation to cause us to incur substantial costs, materially distract management and negatively impact our reputation and financial positions; our ability to contract with providers on cost-effective and competitive terms; competitor pricing below market trends of increasing costs; reduced enrollment, as well as a negative change in our health care product mix; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon and funding risks with respect to revenue received from participation therein; a downgrade in our financial strength ratings; increases in costs and other liabilities associated with increased litigation, government investigations, audits or reviews; medical malpractice or professional liability claims or other risks related to health care services provided by our subsidiaries; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; non-compliance by any party with the Express Scripts, Inc. pharmacy benefit management services agreement, which could result in financial penalties; our inability to meet customer demands, and sanctions imposed by governmental entities, including the Centers for Medicare and Medicaid Services ; events that result in negative publicity for us or the health benefits industry; failure to effectively maintain and modernize our information systems; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association ; state guaranty fund assessments for insolvent insurers; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; intense competition to attract and retain employees; unauthorized disclosure of member or employee sensitive or confidential information, including the impact and outcome of investigations, inquiries, claims and litigation related to the cyber attack we reported in February 2015 ; changes in economic and market conditions, as well as regulations that may negatively affect our investment portfolios and liquidity; possible restrictions in the payment of dividends by our subsidiaries and increases in required minimum levels of capital and the potential negative effect from our substantial amount of outstanding indebtedness; general risks associated with mergers, acquisitions and strategic alliances; various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations; future public health epidemics and catastrophes; and general economic downturns. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements, except as required by applicable securities laws. Investors are also advised to carefully review and consider the various risks and other disclosures discussed in our SEC reports.

Source: Anthem, Inc.

Investor Relations
Will Feest, 317-488-6057
Hieu Nguyen, 202-510-8848