- 3Q 2024 operating revenue of $44.7 billion
- 3Q 2024 adjusted operating gain1 of $2.4 billion
- 3Q 2024 diluted EPS2 of $4.36; adjusted diluted EPS1 of
$8.37
- 4Q 2024 dividend of $1.63 per share declared to
shareholders
Elevance Health, Inc. (NYSE: ELV) reported third quarter 2024
results.
“We remain confident in the long-term earnings potential of our
diverse businesses as we navigate a dynamic operating environment
and unprecedented challenges in the Medicaid business. We expect
Medicaid rates will align with the needs of our members in time,
and are taking proactive actions to enhance operational
efficiencies that will ensure we emerge from this period even
stronger.”
Gail K. Boudreaux President and Chief Executive Officer
Given third quarter results and the timing mismatch between
Medicaid rates and acuity, Elevance Health now expects 2024 GAAP
net income per diluted share to be approximately $26.50 and
adjusted net income per diluted share to be approximately
$33.00.
1.
Refer to GAAP reconciliation tables herein for reconciliation of
GAAP to adjusted measures.
2.
Earnings per diluted share ("EPS").
Elevance Health
Consolidated Enterprise
Highlights
(Unaudited)
(In billions)
Three Months Ended
September 30, 2024
September 30, 2023
June 30, 2024
Operating Revenue1
$44.7
$42.5
$43.2
Operating Gain1,2
$1.4
$1.8
$2.8
Adjusted Operating Gain1,3
$2.4
$2.5
$2.8
Operating Margin1
3.1 %
4.1 %
6.4 %
Adjusted Operating Margin1,3
5.3 %
6.0 %
6.6 %
1.
See “Basis of Presentation” herein.
2.
Operating Gain for the three months ended September 30, 2024,
and September 30, 2023, include items that are excluded from
adjusted shareholders' net income. See "GAAP Reconciliation."
3.
Adjusted Operating Gain for the three months ended September 30,
2024, and September 30, 2023, exclude items that are excluded from
adjusted shareholders' net income. See "GAAP Reconciliation"
herein.
Operating revenue was $44.7 billion in the third quarter of
2024, an increase of $2.2 billion compared to the prior year
quarter. This was driven by higher premium yields in our Health
Benefits segment and growth in CarelonRx product revenue, partially
offset by membership attrition in our Medicaid business.
The benefit expense ratio was 89.5 percent, an increase of 270
basis points, driven primarily by the timing mismatch between
Medicaid rates and the higher acuity of our members. Days in Claims
Payable was 42.8 days as of September 30, 2024, a decrease of 2.5
days from June 30, 2024, and a decrease of 5.8 days compared to
September 30, 2023 due to increases in average benefit expense per
day.
The operating expense ratio was 11.8 percent, an improvement of
110 basis points. Excluding adjustment items, the operating expense
ratio was 9.6 percent, an improvement of 150 basis points,
reflecting disciplined cost management to enhance operating
efficiency.
Cash Flow & Balance Sheet
Operating cash flow was $2.7 billion in the quarter, an increase
of approximately $0.1 billion year-over-year. As of September 30,
2024, cash and investments at the parent company totaled
approximately $2.6 billion.
During the third quarter of 2024, the Company repurchased 0.1
million shares of its common stock for $60 million, at a weighted
average price of $511.01, and paid a quarterly dividend of $1.63
per share, representing a distribution of cash totaling $378
million. As of September 30, 2024, the Company had approximately
$3.1 billion of Board approved share repurchase authorization
remaining. On October 15, 2024, our Audit Committee, pursuant to
authorization granted by the Board of Directors, authorized an $8.0
billion increase to the common stock repurchase program. The
Company intends to utilize this authorization over a multi-year
period, subject to market and industry conditions.
Health Benefits is comprised of Individual, Employer
Group risk-based, Employer Group fee-based, BlueCard®, Medicare,
Medicaid, and Federal Health Products & Services
businesses.
Health Benefits
Reportable Segment
Highlights
(Unaudited)
(In billions)
Three Months Ended
September 30, 2024
September 30, 2023
June 30, 2024
Operating Revenue1
$38.3
$36.7
$37.2
Operating Gain1
$1.6
$1.8
$2.1
Operating Margin1
4.2 %
5.0 %
5.8 %
1.
See “Basis of Presentation” herein.
Health Benefits segment operating revenue was $38.3 billion in
the third quarter of 2024, an increase of $1.5 billion compared to
the prior year quarter, driven primarily by higher premium yields,
partially offset by membership attrition in our Medicaid
business.
Operating gain totaled $1.6 billion, impacted primarily by the
unfavorable mix shift in Medicaid membership related to eligibility
redeterminations, partially offset by premium rate increases,
focused medical management, and the proactive actions we are taking
to enhance operating efficiency.
Medical membership totaled approximately 45.8 million as of
September 30, 2024, a decrease of 1.5 million, or 3 percent, driven
by attrition in our Medicaid business associated with eligibility
redeterminations and footprint adjustments in certain Medicaid
states. These losses were partially offset by growth in Employer
Group fee-based and Affordable Care Act health plan membership.
Carelon is comprised of CarelonRx and Carelon
Services.
Carelon
Reportable Segment
Highlights
(Unaudited)
(In billions)
Three Months Ended
September 30, 2024
September 30, 2023
June 30, 2024
Operating Revenue1
$13.8
$12.0
$13.3
Operating Gain1
$0.8
$0.7
$0.7
Operating Margin1
5.8 %
5.6 %
5.3 %
1.
See “Basis of Presentation” herein.
Operating revenue for Carelon was $13.8 billion in the third
quarter of 2024, an increase of $1.8 billion, or 15 percent
compared to the prior year quarter. This was driven by the launch
and growth of risk-based capabilities in Carelon Services and
growth in CarelonRx product revenue, related to the acquisition of
Paragon Healthcare in the first quarter and increases in external
members served.
Operating gain for Carelon totaled $0.8 billion, an increase of
$134 million, or 20 percent, primarily driven by growth in product
revenue and a one-time favorable intra-year true up in CarelonRx,
partially offset by results in our Carelon Health businesses.
Quarterly Dividend
On October 15, 2024, the Audit Committee of the Company's Board
of Directors declared a fourth quarter 2024 dividend to
shareholders of $1.63 per share. The fourth quarter dividend is
payable on December 20, 2024, to shareholders of record at the
close of business on December 5, 2024.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose
purpose is to improve the health of humanity. The company supports
consumers, families, and communities across the entire healthcare
journey – connecting them to the care, support, and resources they
need to lead better lives. Elevance Health’s companies serve
approximately 113 million consumers through a diverse portfolio of
industry-leading medical, pharmacy, behavioral, clinical, and
complex care solutions. For more information, please visit
www.elevancehealth.com or follow us @ElevanceHealth on X and
Elevance Health on LinkedIn.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30
a.m. Eastern Daylight Time (“EDT”) to discuss the company’s third
quarter results and outlook. The conference call should be accessed
at least 15 minutes prior to the start of the call with the
following numbers:
888-947-9963 (Domestic)
866-510-4837 (Domestic Replay)
312-470-0178 (International)
203-369-1943 (International Replay)
The access code for today's conference call is 3972058. There is
no access code for the replay. The replay will be available from
11:30 a.m. EDT today, until the end of the day on November 15,
2024. The call will also be available through a live webcast at
www.elevancehealth.com under the “Investors” link. A webcast replay
will be available following the call.
Basis of Presentation
- Operating revenue and operating gain/loss are the key measures
used by management to evaluate performance in each of its reporting
segments, allocate resources, set incentive compensation targets
and to forecast future operating performance. Operating gain/loss
is calculated as total operating revenue less benefit expense, cost
of products sold and operating expense. It does not include net
investment income, net gains/losses on financial instruments,
interest expense, amortization of other intangible assets,
gains/losses on extinguishment of debt or income taxes, as these
items are managed in a corporate shared service environment and are
not the responsibility of operating segment management. Refer to
the GAAP reconciliation tables.
- Operating margin is defined as operating gain divided by
operating revenue.
Elevance Health Earnings Release
Financial Schedules and Supplementary Information Quarter
& Year-to-Date Ended September 30, 2024
- Membership and Other Metrics
- Quarterly & Year-to-Date Consolidated Statements of
Income
- Condensed Consolidated Balance Sheet
- Condensed Consolidated Statement of Cash Flows
- Supplemental Financial Information - Reportable
Segments
- Supplemental Financial Information - Reconciliation of
Medical Claims Payable
- Reconciliation of Non-GAAP Financial Measures
Elevance Health
Membership and Other
Metrics
(Unaudited)
Change from
Medical
Membership (in thousands)
September 30, 2024
September 30, 2023
June 30, 2024
September 30, 2023
June 30, 2024
Individual
1,299
999
1,281
30.0 %
1.4 %
Employer Group Risk-Based
3,672
3,754
3,648
(2.2) %
0.7 %
Commercial Risk-Based
4,971
4,753
4,929
4.6 %
0.9 %
BlueCard®1
6,677
6,737
6,692
(0.9) %
(0.2) %
Employer Group Fee-Based
20,589
20,166
20,542
2.1 %
0.2 %
Commercial Fee-Based
27,266
26,903
27,234
1.3 %
0.1 %
Medicare Advantage
2,047
2,064
2,031
(0.8) %
0.8 %
Medicare Supplement
894
928
894
(3.7) %
— %
Total Medicare
2,941
2,992
2,925
(1.7) %
0.5 %
Medicaid
8,926
11,018
9,028
(19.0) %
(1.1) %
Federal Employees Health Benefits
1,656
1,640
1,660
1.0 %
(0.2) %
Total Medical Membership
45,760
47,306
45,776
(3.3) %
— %
Other Membership
(in thousands)
Dental Members
7,021
6,775
7,008
3.6 %
0.2 %
Dental Administration Members
1,878
1,708
1,851
10.0 %
1.5 %
Vision Members
10,382
9,861
10,275
5.3 %
1.0 %
Medicare Part D Standalone Members
258
261
260
(1.1) %
(0.8) %
Other Metrics (in
millions)
CarelonRx Quarterly Adjusted Scripts
80.2
77.3
78.2
3.8 %
2.6 %
Carelon Services Consumers Served
101.3
104.8
102.3
(3.3) %
(1.0) %
1.
BlueCard® membership for the three months ended September 30,
2023, is restated to align to the Blue Cross Blue Shield
Association reporting methodology. For the three months ended
September 30, 2023, BlueCard® membership has been restated lower by
19.
Elevance Health
Consolidated Statements of
Income
(Unaudited)
(In millions, except per share data)
Three Months Ended
September 30
Nine Months Ended
September 30
2024
2023
Change
2024
2023
Change
Revenues
Premiums
$ 36,809
$ 35,259
4.4 %
$ 107,921
$ 107,716
0.2 %
Product revenue
5,887
5,177
13.7 %
15,916
14,058
13.2 %
Service fees
2,023
2,044
(1.0) %
6,378
5,981
6.6 %
Total operating revenue
44,719
42,480
5.3 %
130,215
127,755
1.9 %
Net investment income
551
493
11.8 %
1,524
1,296
17.6 %
Net losses on financial instruments
(125)
(124)
NM
(371)
(358)
NM
(Loss) gain on sale of business
(39)
—
NM
201
—
NM
Total revenues
45,106
42,849
5.3 %
131,569
128,693
2.2 %
Expenses
Benefit expense
32,949
30,606
7.7 %
94,067
92,996
1.2 %
Cost of products sold
5,093
4,648
9.6 %
13,738
12,456
10.3 %
Operating expense
5,269
5,470
(3.7) %
15,221
15,088
0.9 %
Interest expense
300
259
15.8 %
845
771
9.6 %
Amortization of other intangible
assets
122
212
(42.5) %
400
668
(40.1) %
Total expenses
43,733
41,195
6.2 %
124,271
121,979
1.9 %
Income before income tax expense
1,373
1,654
(17.0) %
7,298
6,714
8.7 %
Income tax expense
365
354
3.1 %
1,740
1,554
12.0 %
Net income
1,008
1,300
(22.5) %
5,558
5,160
7.7 %
Net loss (income) attributable to
noncontrolling interests
8
(11)
NM
4
(29)
NM
Shareholders' net income
$ 1,016
$ 1,289
(21.2) %
$ 5,562
$ 5,131
8.4 %
Shareholders' earnings per diluted
share
$ 4.36
$ 5.45
(20.0) %
$ 23.81
$ 21.56
10.4 %
Diluted shares
233.1
236.5
(1.4) %
233.6
238.0
(1.8) %
Benefit expense as a percentage of
premiums
89.5 %
86.8 %
270 bp
87.2 %
86.3 %
90 bp
Operating expense as a percentage of total
operating revenue
11.8 %
12.9 %
(110) bp
11.7 %
11.8 %
(10) bp
Income before income tax expense as a
percentage of total revenue
3.0 %
3.9 %
(90) bp
5.5 %
5.2 %
30 bp
"NM" = calculation not meaningful
Elevance Health
Condensed Consolidated Balance
Sheet
(In millions)
September 30,
2024
December 31,
2023
Assets
(Unaudited)
Current assets:
Cash and cash equivalents
$7,866
$6,526
Fixed maturity and equity securities
30,067
29,843
Premium and other receivables
18,399
17,865
Other current assets
5,949
5,795
Assets held for sale
565
—
Total current assets
62,846
60,029
Long-term investments
10,287
6,983
Property and equipment, net
4,505
4,359
Goodwill and other intangible assets
36,292
35,590
Other noncurrent assets
2,603
1,967
Total assets
$116,533
$108,928
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable
$15,346
$16,111
Short-term borrowings
360
225
Current portion of long-term debt
2,100
1,649
Other current liabilities
24,064
23,806
Liabilities held for sale
163
—
Total current liabilities
42,033
41,791
Long-term debt, less current portion
24,688
23,246
Other noncurrent liabilities
5,933
4,486
Total liabilities
72,654
69,523
Total shareholders’ equity
43,775
39,306
Noncontrolling interests
104
99
Total equity
43,879
39,405
Total liabilities and equity
$116,533
$108,928
Elevance Health
Condensed Consolidated
Statement of Cash Flows
(Unaudited)
(In millions)
Nine Months Ended September
30
2024
2023
Operating activities
Net income
$5,558
$5,160
Depreciation and amortization
995
1,321
Share-based compensation
220
217
Changes in operating assets and
liabilities
(1,701
)
3,821
Other non-cash items
30
513
Net cash provided by operating
activities
5,102
11,032
Investing activities
Purchases of investments, net of sales and
maturities
(1,614
)
(1,976
)
Net purchases of subsidiaries, net of cash
acquired/sold
(725
)
(1,570
)
Purchases of property and equipment
(934
)
(970
)
Other, net
(256
)
(27
)
Net cash used in investing
activities
(3,529
)
(4,543
)
Financing activities
Net change in short-term and long-term
borrowings
1,915
401
Repurchase and retirement of common
stock
(1,089
)
(1,748
)
Cash dividends
(1,135
)
(1,049
)
Other, net
94
(559
)
Net cash provided by (used in)
financing activities
(215
)
(2,955
)
Effect of foreign exchange rates on cash
and cash equivalents
2
(2
)
Change in cash and cash
equivalents
1,360
3,532
Cash and cash equivalents at beginning
of period
6,526
7,387
Less cash and equivalents included in
assets held for sale at end of period
(20
)
—
Cash and cash equivalents at end of
period
$7,866
$10,919
REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits
(comprised of Individual, Employer Group risk-based, Employer Group
fee-based, BlueCard®, Medicare, Medicaid, and Federal Health
Products & Services businesses); CarelonRx; Carelon Services;
and Corporate & Other (comprised of businesses that do not
individually meet the quantitative thresholds for an operating
division as well as corporate expenses not allocated to our other
reportable segments).
Elevance Health
Reportable Segment Highlight
Details
(Unaudited)
(In millions)
Three Months Ended September
30
Nine Months Ended September
30
2024
2023
Change
2024
2023
Change
Operating Revenue
Health Benefits
$38,278
$36,744
4.2 %
$112,695
$112,024
0.6 %
CarelonRx
9,143
8,518
7.3 %
25,984
25,008
3.9 %
Carelon Services
4,638
3,509
32.2 %
13,192
10,573
24.8 %
Corporate & Other
74
95
(22.1) %
323
298
8.4 %
Eliminations
(7,414)
(6,386)
16.1 %
(21,979)
(20,148)
9.1 %
Total Operating Revenue1
$44,719
$42,480
5.3 %
$130,215
$127,755
1.9 %
Operating Gain (Loss)
Health Benefits
$1,604
$1,834
(12.5) %
$6,036
$6,121
(1.4) %
CarelonRx
619
477
29.8 %
1,639
1,485
10.4 %
Carelon Services
184
192
(4.2) %
682
578
18.0 %
Corporate & Other2
(999)
(747)
NM3
(1,168)
(969)
NM3
Total Operating Gain1
$1,408
$1,756
(19.8) %
$7,189
$7,215
(0.4) %
Operating Margin
Health Benefits
4.2 %
5.0 %
(80) bp
5.4 %
5.5 %
(10) bp
CarelonRx
6.8 %
5.6 %
120 bp
6.3 %
5.9 %
40 bp
Carelon Services
4.0 %
5.5 %
(150) bp
5.2 %
5.5 %
(30) bp
Total Operating Margin1
3.1 %
4.1 %
(100) bp
5.5 %
5.6 %
(10) bp
1.
See “Basis of Presentation” on page 5 herein.
2.
Operating Gain for the three months ended September 30, 2024,
and September 30, 2023, included items adjusted out of adjusted
shareholders' net income. See "GAAP Reconciliation" herein.
3.
"NM" = calculation not meaningful.
Elevance Health
Reconciliation of Medical
Claims Payable
Nine Months Ended September
30
Years Ended December 31
2024
2023
2023
2022
2021
(In millions)
(Unaudited)
(Unaudited)
Gross medical claims payable, beginning of
period
$
15,865
$
15,348
$
15,348
$
13,282
$
11,135
Ceded medical claims payable, beginning of
period
(7
)
(6
)
(6
)
(21
)
(46
)
Net medical claims payable, beginning of
period
15,858
15,342
15,342
13,261
11,089
Business combinations and purchase
adjustments
—
—
—
133
420
Net incurred medical claims:
Current year
92,715
91,058
121,798
113,414
100,440
Prior years redundancies1
(1,610
)
(1,342
)
(1,571
)
(869
)
(1,703
)
Total net incurred medical claims
91,105
89,716
120,227
112,545
98,737
Net payments attributable to:
Current year medical claims
79,220
77,048
107,146
98,997
88,156
Prior years medical claims
12,567
12,097
12,565
11,600
8,829
Total net payments
91,787
89,145
119,711
110,597
96,985
Net medical claims payable, end of
period
15,176
15,913
15,858
15,342
13,261
Ceded medical claims payable, end of
period
9
4
7
6
21
Gross medical claims payable, end of
period2
$
15,185
$
15,917
$
15,865
$
15,348
$
13,282
Current year medical claims paid as a
percentage of current year net incurred medical claims
85.4
%
84.6
%
88.0
%
87.3
%
87.8
%
Prior year redundancies in the current
year as a percentage of prior year net medical claims payable less
prior year redundancies in the current year
11.3
%
9.6
%
11.4
%
7.0
%
18.1
%
Prior year redundancies in the current
year as a percentage of prior year net incurred medical claims
1.3
%
1.2
%
1.4
%
0.9
%
2.0
%
1.
Negative amounts reported for net incurred medical claims
related to prior years result from claims being settled for amounts
less than originally estimated.
2.
Excludes insurance lines other than short duration.
Elevance Health
GAAP Reconciliation
(Unaudited)
This document references non-GAAP measures, including “Adjusted
Shareholders’ Net Income,” “Adjusted Shareholders’ Net Income Per
Share,” “Adjusted EPS,” “Adjusted Operating Gain,” “Adjusted
Operating Expense” and “Adjusted Operating Expense Ratio,” which
are non-GAAP measures. These non-GAAP measures are intended to aid
investors when comparing Elevance Health’s financial results among
periods and are not intended to be alternatives to any measure
calculated in accordance with GAAP. Reconciliations of these
non-GAAP measures to the most directly comparable measures
calculated in accordance with GAAP are available below. In addition
to these non-GAAP measures, references are made to the measures
“Operating Revenue” and “Operating Gain/Loss,” “Operating Margin”
and “Adjusted EPS”. Operating revenue and operating gain/loss are
the key measures used by management to evaluate performance in each
of its reportable segments, allocate resources, set incentive
compensation targets and to forecast future operating performance.
Operating gain/loss is calculated as total operating revenue less
benefit expense, cost of products sold and operating expense. It
does not include net investment income, net gains/losses on
financial instruments, interest expense, amortization of other
intangible assets and gains/losses on extinguishment of debt or
income taxes, as these items are managed in a corporate shared
service environment and are not the responsibility of operating
segment management. Each of these measures is provided to further
aid investors in understanding and analyzing Elevance Health’s
operating and financial results. A reconciliation of Operating
Revenue to Total Revenue is set forth in the Consolidated
Statements of Income herein. A reconciliation of the non-GAAP
measures to the most directly comparable measures calculated in
accordance with GAAP, together with a reconciliation of reportable
segments operating gain to income before income tax expense, is
provided below. Prior amounts may be grouped differently to conform
to the current presentation. Net adjustment items per share may not
sum due to rounding. A reconciliation of Operating Revenue to Total
Revenue is set forth in the Consolidated Statements of Income
herein.
Three Months Ended September
30
Nine Months Ended September
30
(In millions, except per share data)
2024
2023
Change
2024
2023
Change
Shareholders' net income
$
1,016
$
1,289
(21.2
)%
$
5,562
$
5,131
8.4
%
Add / (Subtract):
Litigation and settlement expenses1
669
2
680
5
Business optimization charges1
268
697
268
697
Net losses on financial instruments
125
124
371
358
Amortization of other intangible
assets
122
212
400
668
Transaction and integration related
costs1
42
73
158
154
Loss (gain) on sale of business
39
—
(201
)
—
Tax impact of non-GAAP adjustments
(329
)
(270
)
(432
)
(470
)
Net adjustment items
936
838
1,244
1,412
Adjusted shareholders' net
income
$
1,952
$
2,127
(8.2
)%
$
6,806
$
6,543
4.0
%
Shareholders' earnings per diluted
share
$
4.36
$
5.45
(20.0
)%
$
23.81
$
21.56
10.4
%
Add / (Subtract):
Litigation and settlement expenses1
2.87
0.01
2.91
0.02
Business optimization charges1
1.15
2.95
1.15
2.93
Net losses on financial instruments
0.54
0.52
1.59
1.50
Amortization of other intangible
assets
0.52
0.90
1.71
2.81
Transaction and integration related
costs1
0.18
0.31
0.68
0.65
Loss (gain) on sale of business
0.17
—
(0.86
)
—
Tax impact of non-GAAP adjustments
(1.41
)
(1.14
)
(1.85
)
(1.97
)
Net adjustment items
4.01
3.54
5.33
5.93
Adjusted shareholders' earnings per
diluted share
$
8.37
$
8.99
(6.9
)%
$
29.14
$
27.49
6.0
%
Three Months Ended September
30
Nine Months Ended September
30
(In millions)
2024
2023
Change
2024
2023
Change
Income before income tax
expense
$
1,373
$
1,654
(17.0
)%
$
7,298
$
6,714
8.7
%
Net investment income
(551
)
(493
)
(1,524
)
(1,296
)
Loss (gain) on sale of business
39
—
(201
)
—
Net losses on financial instruments
125
124
371
358
Interest expense
300
259
845
771
Amortization of other intangible
assets
122
212
400
668
Reportable segments operating
gain
$
1,408
$
1,756
(19.8
)%
$
7,189
$
7,215
(0.4
)%
1.
Adjustment item resides in the Corporate & Other reportable
segment.
2.
Totals may not foot due to rounding
Elevance Health
GAAP Reconciliation
(Unaudited)
Three Months Ended September
30
Nine Months Ended September
30
(In millions)
2024
2023
Change
2024
2023
Change
Reportable segments operating
gain
$
1,408
$
1,756
(19.8
)%
$
7,189
$
7,215
(0.4
)%
Add / (Subtract):
Litigation and settlement expenses1
669
2
680
5
Business optimization charges1
268
697
268
697
Transaction and integration related
costs1
42
73
158
154
Net adjustment items
979
772
1,106
856
Reportable segments adjusted operating
gain
$
2,387
$
2,528
(5.6
)%
$
8,295
$
8,071
2.8
%
Three Months Ended September
30
Nine Months Ended September
30
(In millions)
2024
2023
Change
2024
2023
Change
Operating expense
$
5,269
$
5,470
(3.7
)%
$
15,221
$
15,088
0.9
%
Add / (Subtract):
Litigation and settlement expenses1
(669
)
(2
)
(680
)
(5
)
Business optimization charges1
(268
)
(697
)
(268
)
(697
)
Transaction and integration related
costs1
(42
)
(73
)
(158
)
(154
)
Net adjustment items
(979
)
(772
)
(1,106
)
(856
)
Adjusted operating expense
$
4,290
$
4,698
(8.7
)%
$
14,115
$
14,232
(0.8
)%
Operating revenue
$
44,719
$
42,480
5.3
%
$
130,215
$
127,755
1.9
%
Operating expense ratio
11.8
%
12.9
%
(110) bp
11.7
%
11.8
%
(10) bp
Adjusted operating expense ratio
9.6
%
11.1
%
(150) bp
10.8
%
11.1
%
(30) bp
Full Year 2024 Outlook
Shareholders' earnings per diluted
share
Approximately $26.50
Add / (Subtract):
Litigation and settlement expenses1
$2.93
Amortization of other intangibles
$2.21
Net losses on financial instruments
$1.93
Business optimization charges1
$1.15
Transaction and integration related
costs1
$1.03
Gain on sale of business
($0.86
)
Tax impact of non-GAAP adjustments
Approximately ($1.89)
Net adjustment items
$6.50
Adjusted shareholders' earnings per
diluted share
Approximately $33.00
1.
Adjustment item resides in the Corporate & Other reportable
segment.
Forward-Looking Statements
This document contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect our views about future
events and financial performance and are generally not historical
facts. Words such as “expect,” “feel,” “believe,” “will,” “may,”
“should,” “anticipate,” “intend,” “estimate,” “project,”
“forecast,” “plan” and similar expressions are intended to identify
forward-looking statements. These statements include, but are not
limited to: financial projections and estimates and their
underlying assumptions; statements regarding plans, objectives and
expectations with respect to future operations, products and
services; and statements regarding future performance. Such
statements are subject to certain risks and uncertainties, many of
which are difficult to predict and generally beyond our control,
that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date hereof.
You are also urged to carefully review and consider the various
risks and other disclosures discussed in our reports filed with the
U.S. Securities and Exchange Commission from time to time, which
attempt to advise interested parties of the factors that affect our
business. Except to the extent required by law, we do not update or
revise any forward-looking statements to reflect events or
circumstances occurring after the date hereof. These risks and
uncertainties include, but are not limited to: trends in healthcare
costs and utilization rates; reduced enrollment; our ability to
secure and implement sufficient premium rates; the impact of large
scale medical emergencies, such as public health epidemics and
pandemics, and other catastrophes; the impact of new or changes in
existing federal, state and international laws or regulations,
including laws and regulations impacting healthcare, insurance,
pharmacy services and other diversified products and services, or
their enforcement or application; the impact of cyber-attacks or
other privacy or data security incidents or our failure to comply
with any privacy, data or security laws or regulations, including
any investigations, claims or litigation related thereto; failure
to effectively maintain and modernize our information systems or
failure of our information systems or technology, including
artificial intelligence, to operate as intended; failure to
effectively maintain the availability and integrity of our data;
changes in economic and market conditions, as well as regulations
that may negatively affect our liquidity and investment portfolios;
competitive pressures and our ability to adapt to changes in the
industry and develop and implement strategic growth opportunities;
risks and uncertainties regarding Medicare and Medicaid programs,
including those related to non-compliance with the complex
regulations imposed thereon; our ability to maintain and achieve
improvement in Centers for Medicare and Medicaid Services Star
ratings and other quality scores and funding risks with respect to
revenue received from participation therein; a negative change in
our healthcare product mix; costs and other liabilities associated
with litigation, government investigations, audits or reviews; our
ability to contract with providers on cost-effective and
competitive terms; risks associated with providing healthcare,
pharmacy and other diversified products and services, including
medical malpractice or professional liability claims and
non-compliance by any party with the pharmacy services agreement
between us and CaremarkPCS Health, L.L.C.; risks associated with
mergers, acquisitions, joint ventures and strategic alliances;
possible impairment of the value of our intangible assets if future
results do not adequately support goodwill and other intangible
assets; possible restrictions in the payment of dividends from our
subsidiaries and increases in required minimum levels of capital;
our ability to repurchase shares of our common stock and pay
dividends on our common stock due to the adequacy of our cash flow
and earnings and other considerations; the potential negative
effect from our substantial amount of outstanding indebtedness and
the risk that increased interest rates or market volatility could
impact our access to or further increase the cost of financing; a
downgrade in our financial strength ratings; the effects of any
negative publicity related to the health benefits industry in
general or us in particular; events that may negatively affect our
licenses with the Blue Cross and Blue Shield Association; intense
competition to attract and retain employees; risks associated with
our international operations; and various laws and provisions in
our governing documents that may prevent or discourage takeovers
and business combinations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241016900631/en/
Investor Relations
Stephen Tanal
Investor.Relations@elevancehealth.com
Media Leslie Porras
Leslie.Porras@elevancehealth.com
Elevance Health (NYSE:ELV)
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