News Headlines Article

Health insurer Anthem says Obamacare costs drag down fourth-quarter profit

Health insurer Anthem Inc (ANTM.N), which is in the process of buying smaller rival Cigna Corp (CI.N), said on Wednesday its individual Obamacare exchange health plans weighed on fourth-quarter profit, causing it to miss analysts’ expectations.

Anthem said that it had nearly 800,000 people enrolled in plans through the exchanges, which were created under President Barack Obama’s national healthcare reform law, about 30 percent below its expectations. Without the membership it had planned for, costs of running the business were too high, Anthem said.