Elevance Health Inc. ELV reported first-quarter revenues of $42.3 billion, up 0.9% year over year, marginally missing the consensus of $42.6 billion.
Higher premium yields drove this increase to reflect medical cost trends and growth in Carelon, including a full quarter of revenue from BioPlus, partially offset by attrition in Medicaid membership.
“First quarter results reflect disciplined execution of our strategic initiatives during a dynamic time for our industry,” CEO Gail Boudreaux said. “We are making significant progress expanding Carelon’s capabilities, scaling our flywheel for enterprise growth, and delivering results for all stakeholders.”
Elevance Health’s first-quarter profit grew 12.2% year over year to $2.2 billion. The insurer reported adjusted EPS of $10.64, up 12.5% year over year and beating the consensus of $10.53.
The benefit expense ratio was 85.6 percent, an improvement of 20 basis points, driven primarily by premium rate adjustments to cover medical cost trend in Health Benefits business.
The company reported $37.3 billion in operating revenue at its health benefits arm, flat Y/Y. Elevance Health said premium increases were offset by decreases in Medicaid membership caused by the redetermination process and changes to its geographic footprint.
Elevance Health plans had about 46.2 million members, a decrease of 1.9 million or 4% year over year, driven by Medicaid. However, the company said growth in commercial and Affordable Care Act exchange enrollment helped offset some of the decreases in Medicaid.
Medicaid enrollment was down 21.5% to 9.3 million.
Carelon’s operating revenue reached $12.1 billion, up 5% backed by expansion within CarelonRx, the company’s pharmacy benefit manager, and new risk-based capabilities within Carelon Services.
Guidance: Elevance boosted its guidance for 2024 to over $37.20 in earnings per share compared to the prior outlook of over $37.10 and the consensus of $37.15.
Read Next: Kroger Passes The Baton: Sells Specialty Pharmacy Division To CarelonRx.
Price Action: ELV shares are up 4.44% at $531.59 during the premarket session on the last check Thursday.
Photo Vlad Deep for Unsplash
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