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Former members of failed ACA co-ops moving to Anthem

sawhigher-than-anticipated enrollments in its Affordable Care Act plans, pickingup members in states where health insurance consumer operated and orientedplans have failed, executives said.

Membersof struggling co-ops opted for Anthem, although the insurer was "not thenext lowest cost carrier," CFO Wayne DeVeydt said during an call.

"Inmany cases [our prices] were substantially higher than the next or several nextlowest cost carriers." DeVeydt said. "So there appears to be a littlebit of a flight to safety, if you will, and security."

Anthemadded new members in states such as New York, California, Colorado andKentucky. At the end of the first quarter, the insurer had 975,000 lives fromthe individual public exchanges, up 184,000 from Dec. 31, 2015.

Theinsurer's ACA members mostly bought silver products, which the CFO said is apositive trend for the company given how it prices its book. Executives didstress that is too early to determine what percentage of members carried overfrom 2015, adding that they will evaluate the risk profile of the insurer's ACApopulation and the book inherited from the co-ops by the end of the secondquarter.

Chairman,President and CEO Joseph Swedish conceded that the overall exchange marketplaceis lagging expectations.

"Overtime, we do believe we are well-positioned for continued growth in the exchangemarketplace if the market stabilizes to a more sustainable level. I think thatis a key consideration," he said.