Anthem off on continued cost concerns

Anthem (ANTM -0.3%) is under modest pressure on the heels of a corporate presentation at Wells Fargo’s Healthcare Conference in Boston. CFO John Gallina reiterated the company’s outlook for its medical cost ratio of 86.2 – 86.5%, up from 84.2% in 2018 and inline with 2017’s 86.4%, but investors appear to have had hopes for a lower range.

Health insurers have sold off for ~two months in reaction to expectations of rising costs.

The medical cost ratio (or medical benefits ratio) is the ratio of premium revenue over what is paid out for claims. A rising percentage indicates rising costs or decreased premiums.

https://seekingalpha.com/news/3497371-anthem-red-continued-cost-concerns