Elevance Health, a leading health insurer in the United States, reported its financial results for the three and nine months ended September 30, 2024, in its latest 10-Q filing. Here are the key highlights from the report:
- Elevance Health serves nearly 46 million medical members through its affiliated health plans as of September 30, 2024, making it one of the largest health insurers in the country.
- The company operates under various brand names, including Anthem Blue Cross/Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. It reports its results of operations in four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other.
- Elevance Health expanded its participation in the Individual state* or federally-facilitated marketplaces for 2024, offering products in 141 of the 143 rating regions in which it operates.
- The company's CarelonRx business provides pharmacy services to its affiliated health plan customers across the country. It began assuming responsibility for pharmacy mail order front-end intake from CVS in the first quarter of 2024.
- Elevance Health strives to price its health benefit products consistent with anticipated underlying medical cost trends and adjusts pricing in response to legislative and regulatory changes, as well as actions taken by competitors and new market entrants.
- The company's medical cost trends are primarily driven by increases in the utilization of services across all provider types and unit cost increases of these services. It works to mitigate these trends through various medical management programs.
- Elevance Health has experienced a decline in Medicaid membership as states began removing ineligible beneficiaries from their Medicaid programs. However, it expects growth over time in its commercial plans, including through the Public Exchanges, as members seek coverage elsewhere.
- The company highlighted the impact of various legislative acts on its business, including the Consolidated Appropriations Act of 2021 and the Inflation Reduction Act of 2022, which have introduced provisions affecting premium tax credits, corporate alternative minimum tax, drug pricing, and more.
- Elevance Health implemented the "2023-2024 Business Efficiency Program" during the third quarter of 2023 to refine its investments and optimize its physical footprint, resulting in the write-off of certain information technology assets, contract exit costs, staff reduction, and impairment of assets associated with the closure or partial closure of data centers and offices.
- The company's Medicare Advantage Star Ratings reflect an increase in the percentage of members enrolled in plans rated at least 4.0 Stars or higher for payment year 2025, with an expectation of a reduction in operating revenue for 2026.
- Elevance Health made an equity investment resulting in a minority interest ownership of Mosaic Health, a joint venture with Clayton, Dubilier & Rice, which aims to accelerate innovation in care delivery across multiple regions in the United States.
Additionally, the company completed the acquisition of Paragon Healthcare, Inc., a provider of infusion services and injectable therapies, and BioPlus Parent, LLC, one of the largest independent specialty pharmacy organizations in the United States, aligning with its vision to be an innovative and valuable healthcare partner.
These key points from Elevance Health's 10-Q filing provide insights into its operations, financial performance, and strategic initiatives for the period. The market has reacted to these announcements by moving the company's shares -2.4% to a price of $433.69. For more information, read the company's full 10-Q submission here.
