Here are five key notes:
1. Anthem’s management told Jefferies analysts the health insurer, which sells plans under Blue Cross Blue Shield, is “leaning toward” leaving most of the insurance exchanges where it sells plans currently.
2. An Anthem exit would be a crushing blow to the insurance exchanges, as Anthem currently covers 800,000 individuals in 14 states through the exchanges. The company’s departure would leave ACA customers with fewer choices for insurance next year.
3. Two months ago, Anthem CEO Joseph Swedish said the company would decide whether to stay in the exchanges or not within months, depending on how stable the marketplace is.
4. In order for the company to stay on the marketplace, Anthem is asking for regulatory changes to lower the risk for insuring customers on the ACA; the company’s management told analysts the company would need to make significant advocacy progress within the next month.
5. Anthem’s current customer pool could also have an impact on its decision, as the level of health claims could be a deciding factor as to whether the company will pull out of the exchanges next year. The company also expects state insurance departments to raise premium rates for next year to sustain the markets.
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