Elevance Health (ELV) 31 Jan 182017 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Anthem Fourth Quarter Results Conference Call. At this time, all lines are in a listen-only mode. Later, there will be a question-and-answer session. Instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. to conference like company’s to now management. would turn over the the I

welcome quarter Division; few Division; morning Anthem’s financial overview This morning of Specialty Gallina, to Good and months Business Gail Haytaian, Pete Counsel. begin call of will performance vision fourth our metrics President President key an the CEO; Simpson fourth President then first XXXX of with and Anthem our Zielinski, John our Commercial CFO; General financial unit Boudreaux, Government the is and performance. for at by XXXX the Griffin, our us her and results and Gail this Business will Tom are our giving business and and John our Brian quarter, Doug call. company. earnings discuss for our our

XXXX go initial Finally, Gail our outlook. will over

be We will Q&A. then available for

Reconciliations the are During non-GAAP certain the non-GAAP measures. our GAAP measures these we comparable to will call, available at antheminc.com. directly of measures website on reference most

in cause turn and now review our We materially over will quarterly also beyond the with These will can actual are results annual SEC. today’s are statements subject from on call are to statements and some be of I control and release to and expectations. certain forward-looking uncertainties advice Listeners to risks these that risk predict generally in to many to of cautioned listeners difficult differ uncertainties, our risks current press factors this the the which discussed and the Anthem. Gail. call. filings making We

revenues which of were earnings per our Operating X.X% plans $XX continued beyond. $X.XX, businesses. expectations fourth quarter us adjusted by joining balanced performance share growth share for in per we our we and performance and fourth XXXX to ahead over in This grew billion. you driven XXXX reported morning, Anthem’s XXXX and Thank quarter GAAP review $X.XX and everyone. morning, Good XXXX year of earnings by end for across our of as

XX.X% XXXX. for exceeded for Our in medical over loss and flow came the ratio year billion of the better than year XX% growth operating expected cash at a $X.X

pleased by of marketplace trends momentum parts including to during growth XXXX which were the better membership continued than the in in transaction, needs improved evidenced markets consumers the of Medicare the large completion medical as came and XX,XXX the new traction of commercial our full members benefit our with year are for slightly expected. than HealthSun in more our expectations the loss solid Also ratio of finished of XXX,XXX our and We key quarter medical year. insured our representing and fully small our group in year We consumers, added approximately million Advantage serving managed business the costs business, business. ahead XX.X and well

Our on loss businesses fourth of Medicaid our improvements individual improved medical continued of the and insured a cost trends, drove in quarter. group resulted focus in care and in specifically medical XX.X% local ratio expense

well are fourth our with and earnings As long-term growth. quarter a entered XXXX we operating for positioned of XXXX solid results, momentum sustainable result high-quality

opportunities joining the brokers of understanding Anthem thorough a a weeks gain how I and beyond. a business and than local the improve and business spent around key quickly to been have my business recent the being lot on to we that I serve associates as with our to of with deep care our a people meeting and a company trustworthy. we of a have value to has innovative providers, the time has communities visiting built impact foundation in well seen a customers, to firsthand of have One do our other as perform and our raise I deep execution on markets performance more the in on of our embodies Anthem. XXXX partners. since in relentless ago and months review believe and our organization business operates priorities opportunity to X focus continuously to challenged quality strong healthcare little I of culture and the we country performance legacy, substantial our in caring, the commitment strong affordability across America. our greater order a further deliver have a on and Building day-to-day easy accountable,

to innovation drive and Specifically, and our we market to our advance and customers. value our need capabilities brand strong leverage data focus position consumer analytics greater local for

our do can our initial the the delivering have segment. need near-term and execution business our my increase still there focus Anthem share to that for a innovative meet flexibility building continue developing primary to my order and operating some been and serve increasing of and emphasizes we performance. In While find to market view, our will increase members on focus we vision customers my across our better but solutions. priorities platform, on improve and is speed has to we strong is affordability and optimizing to that more thoughts In financial solutions these I Anthem. needs on to expectations

our through while further best-in-class incremental solutions will to market to investments better on Amerigroup including product provider business incur. technology in so In in that And capabilities. receive care also medical of growth further to increased we to XXXX consumer Commercial brand more costs can our also the improve presence quickly and digital will cost consumer integrated facing making ways medical We costs efforts, be quality value growing Blue deploy in modernization capabilities cost our they reducing many our drive name. continue identify of focus and care, relations, our of will we proposition, our our and drivers the the members deep leverage Anthem’s technologies we focus new expertise advantages our and the care effectively on development capabilities, local work

experience our more us our efficient. migrate onto in improve membership efforts end and state to the make will which accelerating our Specifically, we platform are consumer consistency

Additionally, developing applications facing new in for and also care Anthem investing and enhance experience. agents will and drive and responsive more business for portals to choice. enhancing capabilities customer’s to digital that greater easier external mobile and capabilities automation with new members, we This make personalized and providers it our consumer are conduct includes

are and affordable examples simpler simpler also These to our building consumers. a for product platforms. an products process We make configure onto to end modular integrate allow control the our our to flexibility it healthcare end those are more efforts more effective to data and investments few of navigate, efficiently make systems to designs to

government over XX% revenue platforms. of growth currently our represents more Medicaid consolidated Looking Medicare is and business which positioned for growth specifically operating in at Anthem’s sustainable the opportunities the businesses, across

the increasingly budget healthcare specialized states to Anthem of Our Medicaid which see a much now team ever constraints significant individuals serve. companies pipeline like role working of opportunity healthcare they population. play service end billion that of is better targeting an as tightening We their can of business of the as incremental recognize with encompasses XXXX, between opportunities manage $XX the of state worth and partner, the

their are the including our plans partnerships Medicaid other platform combine local health with expertise. network market focused in Blue with We on best-in-class strategic that plans and operating providers also developing

will through Blue its into XXXX of Shield which the For Minnesota serve a approximately of also year XXX,XXX Medicaid to Cross program. with partnership serves members. Medicaid Cross of which example, Blue with partnered end we the Blue by Blue goes in In we eligible the dual form Louisiana Healthy Shield approximately and currently XXX,XXX formed effect XXXX fall Blue recently members and of

alliances share opportunities capture see we Advantage Medicare, this to as working presence and population our Medicare to more continue has partnerships providers to individual and approximately Advantage everyday. ahead, substantial Looking leverage lagged fair platform. and opportunities and to continue have now Medicaid deep Medicare colleague Historically, markets. our aging market. Medicare believe we see Anthem expertise our well-positioned reach growth penetration of to new plans other our are expand health with been we XX,XXX the I leverage improved in baby-boomers eligible Blue we of to form into to new to In our

have further confident share this strong our marketing growing to that focused Specifically, leverage market. ability I competitive more the and capture am our and in we to investment product offerings brand, our sales

individual with rate the Medicare continuing period have Advantage we market. XXXX where outpaced are strong growth through in open the our a as XXXX and enrollment We encouraged rate growth

rates organic to growth the mid expect growth double-digits the outpacing X% our in low over to next We markets existing in continue to few years of X%.

HealthSun of key of XXX,XXX share also of acquisition market Choice. acquisition America’s companies Florida Advantage Together, pending from as add in approximately deep Advantage these provider and our Medicare well Our as relationships lives new the the benefit Medicare will completion the market. will Xst

these Medicare of addition Advantage will membership be XXX,XXX. Florida our With total the approximately plans,

segment this star now growth XXXX the in capabilities noticeable our strengthening of and Supporting for soon. on to this membership all year. plans in X-star rating over group focused payment now our Advantage see improved our growth the expect are of residing We in employer XX% business Medicare with is

of America’s providing Additionally, our Anthem in In offerings the insured investing more fully following the market trends to consumer with business Choice appropriate digital Anthem’s opportunity five local and capabilities. of meaningful medical be Xst is will improve X-star business, close knowledge by only the acquisition. membership plans commercial carrying historical there margins focused at and leverage

and care even with a to consumers foundation have We build solid deeper relationships providers.

the best health NCQA. diabetes, heart of plans care For are outcomes superior performing consistently ranked asthma top and plans, example, disease. the Anthem These and deliver customer such XX scores X as by areas which top in operates preventive satisfaction, in as commercial

rate the of improving progress specialty past breadth we few improving specialty plan the extend competitiveness our Both last of with of the made improved relationships years. penetration customer addition, the has rates less offerings. to about meaningfully years rate products. over penetration over these our In little by dental The self-funded of several and significant team a of vision dental of the commercial ended and We XX%. penetration vision a than rates XX% XXXX have

expect to will improvement in continue and the continued those in come. invest rates to specialty penetration in products years We our

in priority align XXXX, Medicaid develop augment and strategy focused in fee bottom stronger, we a recent has profitable accelerating We and first another top line to business higher days during businesses. need the with long-term around successes at organization line commercial our my growth. key XX our While on significant revenue plans have to and Anthem been growth to opportunities

and in identifies revenue agile drive marketplace. We proactively existing engages packaging our an by that in are culture building organization growth to opportunities better capabilities new and leveraging an the our with assets

engagement provider market opportunities unique market the the on provide local power evidence-based packaging integration to combine will enhance its been on better focused in healthcare. in care specialty example members, quite affordability be AIM local we for also to position. that to also advanced experience Anthem our will areas, A XX% down our Success clinical continuing with a the strength others. to able member testing, key delivering solutions better our AIM collaboration priorities of has on cost more integrated and and leverage of several growth, and are customers all for a those solutions healthcare subsidiary, care. experience and and to best-in-class management these our market. provide is share XX%. provides clinical to initiative major a of assets savings One we depth cardiology, to performance across as needed of customers great our our increased Depending our accelerate of competitive focused and which RX presence, which improve of have strengthen that cost and has Specialty cost while is our Anthem our in imaging, drive workflow we including and Health to domain, in change care affordability to the consumer our variety genetic build oncology, financial few supports driving medical deploy of

user we of diversify XX%. platform electronic and as revenue assets interactions of growth By existing able our to or line base. new acquiring accelerate better capabilities, our a investing Additionally, our be organizing top will technology provider be to in enables as rate well our with XX% satisfaction better

to ways competitive will position. we our with help offerings explore and partners addition, to to In Anthem’s product Blue them capabilities leverage improve their work continue to

system have Plan cultivate to colleagues grow Blue We to a a the our opportunity strategic partnerships whole. and unique advance with the Blue of as impact

helps has on will continue consumer to strong our healthcare the meaningful drives Anthem also which for a improvement and individual. some more loyalty the experience company. We focus consumer-centric simpler make experience, made to becoming

new the help our with improving opportunities improved combining offering communication IngenioRx, unique the For PBM, our example, usefulness opportunity highly pharmacy these innovative we deployed and and have and offering on deliver updates focused By of the have been a integrated visual product inform members notification real-time market. claim. a status medical to of to feature we of clarity through a our key member like to have a

$X a expect new to of to our continue migrate We billion run-rate the XXXX. pharmaceutical our enrollment to by once at platform basis least new gross PBM deliver we January savings on X,

that to accrue least continue at of shareholders pre-tax basis. on benefit XX% a to project also We will this

serve we activity. open continue community community strong health is million to some XX Foundation we the than issue. will through markets Additionally, in be partner a The most of the nation’s in pressing more positively impacting Anthem

community members tracking more example out with making have American that CPR than those million X.X Anthem important and we rate towards and we for For the are training. example, doubling survival cardiac the trained Association, through is together that believe that serve. difference in Americans. arrest our one just hands-only it’s we seek Heart a we To-date, This

my it have with historically. consistent heard capital you is what As relates overall deployment, view to

investments We balanced believe making a and the will then the of opportunities plan. with dividends. thoughtful share drive market, in approach and shareholders business in deploy strategy our necessary coordinated, M&A buybacks to exist prioritize evaluate M&A then through long-term capital a should I first, the finally

will help strategically tomorrow. to very our pipeline and the on disciplined asset the and we how to of position current be how capitalize opportunities enhance and Anthem long-term leveraged the for We to M&A base evaluate build

locations Medicare well and larger we acquisition in demonstrates run can strategic pending Both our America’s and Our companies these of this further scale. of of focus. which grow HealthSun assets well Choice Xst acquisition strategy, fit into

earnings am we that of of end time I on focus over upper a achieving earnings. company, share this with target move upper double-digits sustainable per single remain the As long-term committed growth can range. we our to range optimistic high-quality low to a generating to

our of be would growth. improved well economics base as line opportunities manage cost played medical with pharmacy As our these with position Combining capabilities growth. integrated emphasis as ability offering have through diversify leveraging very revenue out, our improving well will leading the we to to care for I on total Anthem the competitive to improved an IngenioRx top very and

on efficient I detail. and shareholder to discuss stewards Finally, to capital. will With that, over of financial turn in we will John? more John focus our effective being results call XXXX the

Thank you, Gail and good morning.

momentum. adjusted expectations and XXXX entered earnings positive was earnings As results came was ahead in and strong Fourth GAAP Gail share XXXX our quarter per mentioned, with fourth per we of $X.XX. share operating quarter XXXX $X.XX

result During deferred legislation. the one-time fourth quarter, recently of we reform recorded $X.X billion the tax non-cash tax benefit as a passed

XXX,XXX year Year our upper lives, the in versus full that to XXXX. Fully expectations business range insured million growth or medical cost the membership and as and over end over year with was towards GAAP a we of market new the insured account closed end $XX.XX prior by For The of $XXX,XXX representing of and finished value X.X% representing our end on optimistic earnings per over within results and during group range. growth the the which mainly the members per Membership XX.X last share, better-than-expected build our we XX our HealthSun primarily XXXX. by proposition business in million term million XXXX The of growth our performance slight membership slightly over months and are continues our a representing higher of local are drive of earnings approximately fully the drive $XX.XX XX.X targeted came we projections. fourth targeted ahead membership longer quarter. the this ahead year growth with adjusted was XXXX, can latest was wins primarily little increase $XX finished The members at members, business self-funded increase marketplace. in driven driven leading by XXXX. gains X.X% enrollment Medicaid driven totaled in the of XX,XXX of the XXXX was end as share

increases their billion during cover as XXXX. of of $XX.X in than year. waiver our is more growth, The increase revenue These Our revenue especially the the $X.X Medicare to XXXX grew offset the as decrease in in business insurance group or enrollment tax and premium cost factors of trends. operating health across overall by well reflective billion local the from X.X%

medical XX.X%, quarter. ratios year. improvements. loss the points better-than-expected prior was XXXX focus We the from medical by in increase loss an care individual The of primarily came ratio expected for our Our of businesses basis at on during year the fourth and previously than cost Medicaid in saw continued XXX ratio ACA compliant better driven our

highlight X.X%. insured updating Group in group the approximately Local local I XXXX. was our medical trends we the for underlying of to want trend medical year that are reporting cost Our cost

than better was The the incremental from than amount and by better less driven We the the is which points is based expense where Group in during cost company our rate X-year higher co-pays trend. co-pays quarter XXXX the ratio cost the Local trend deductibles. full year allowed On approximately a or Group expense financial apples-to-apples was incentive the cost overall points X.X% indicator on be will of mainly Local revised the tax. The an through basis, and been performance. minus trends basis basis, providers methodology. XXXX which previous under waiver allowed expectations medical represents now compensation expected members Anthem. by year and methodology lower the this paid range basis XX.X%, XXXX. report plus a health at fourth in This came in X% representing spending methodology insurance than trend amount paid of would to of amounts amount, XX on medical this only due XXXX is due the will investment ratio Anthem to by paid for the deductibles, healthcare or have amount, SG&A based The XX anticipates in contractual and previous On higher the

Now, X.X% turning national increase prior year, in in or lower the growth XXXX. business Group individual by finished XXX,XXX expected was the commercial These the self-funded products. Local of end. This XXXX increases offset increase strong, of both or year billion driven XX.X over in Commercial our billion of business million business. in our an an the to unit by operating partially with and were results, increase $XX.X membership business X.X% with members, mainly financial fully in for decrease insured and revenues our finished year business our $X.X our enrollment

Our than cost as the offset individual enrollment impact waiver medical better X.X expected insurance compliant. public quarter. declined with in from little fourth year which line compliant points was million was of the million The mainly XXX,XXX by were of less compliant for than compliant businesses. operating X.X quarter XXXX the X-year of during exchanges. than individual a The little XXX,XXX local of ACA which them partially basis during from tax, driven in group and with was a trends in X.X in our ratio. of XXX expectations. expected total our by decrease X.X%, is by than ACA better health business the discussed the the This the We Of individual individualized experienced claims decrease the ACA ended million XXX,XXX were our and more non-ACA the were lives, a margin commercial XXXX

the breakeven result have in we relatively slightly our the our outlook. better year, performance profitable As expected latest business a than was during

ended the X.X the Now quarter with and to government XX,XXX turning XX,XXX the year. during members, lives growth of during XXXX business, million we

including XXX,XXX completed We our XX,XXX recently the grew Medicare members are HealthSun membership acquisition. by from pleased that lives approximately

basis enrollment was operating business growth XXXX. The cover XXXX. is the to grew by originally and in Medicaid work year, XXXX XXXX billion full the HealthSun, operating expected to than with In the X.X% third in that was $X.X for was in X.X% of our offset lower fourth occur new our continue year government were full XX gains XXXX increase any and our the made individual CMS billion trends impact XX,XXX AmeriHealth margins XXXX Fourth by overall revenue Excluding the an our margin partners business, year. during Total retroactive business previously enrollment of rate $XX.X year ensure state premium revenue our impact during of business. Medicaid XX.X% the in the increases X%, cost government points to from members expected quarter advantage quarter. for quarter exit. partially the revenue or which claim rates trends, in we Medicare in better increase driven Medicare The by and sound discussed address for advantage adjustments membership the are appropriately prior operating timing of period we that Iowa, in the in to July reflect with actuarially than versus were

path we actuarially making Additionally, profitability. increase very XXXX and X, July on focused target rate sound our sure is to a are establishes

the claims to forward Moving in medical our balance press the past practice we sheet, of morning’s consistent roll a included this payable have release. with balance

favorable prior the billion, $X.X was expected. which of we experienced better full XXXX, year year reserve than For development

reserves a for and deviation strong balances the single-digits include mid to of to Our continued believe our high average XXXX. as December consistent and XX, remain in reserve provision

claims of we fourth of quarter. claims rates times. improvements payment XXXX, X.X a the days we days in decrease where operational on days our XX.X auto quarter is continue improve improving increasing systems The cycle days decrease to reported leading our the integrity on in focus to by XX.X Our the and efforts adjudication driven third from payable processing the was in our

cap reported offering $X.X primarily an the due ratio from these X.X%. an of was issuance at trend As with other quarter DCP debt of The efforts, billion ended and the the down and we in to end points XX.X% the basis quarter. a be of to coupon of of we a believe of the to third average over at during a XXX rate increase increase the high-XXs XX.X%, XXXX continue time. ongoing debt will We our result

tender will ended was to us our acquisition the repurchase in cash did to fund to debt use with timing and to due to debt of plan funds allowing upon The XXXX. acquisition decrease the ratio and quarter closing. the higher Choice also some in used were entire a coupon including cash of the we billion approximately quarter $X.X notes those the complete complete HealthSun the X% offer that the During raised over of $XXX million back range. We of investments inter-company parent quarter debt of time of Xst the the $X.X We billion, impact included funding towards America’s low-XXs. company approximately capital which

Excluding the which early the was the and have investments would impact, billion. timing $X.X resolved company in parent year at cash totaled

timing our as receipts and third which including was timing on payment For operating monthly the of $X.X received Medicare for negative cash of quarter flow, flow driven discussed the Cash provider net X.Xx $X.X call full billion capitation we items the flow reported expected fourth of was pass-through billion the cash CMS funding, in year third by XXXX quarter the income. as or several quarter. in

of increased during the pay Board also million used Yesterday, per $X.XX Directors dividend. to cash for $XXX.X first to industry quarter leading quarter our and we continue share $X.XX by our We dividend. our dividend

our call back we a to will X to outlook. years increased I turn have Gail? With year We discuss dividend since paying began our XXXX that, ago. Gail dividend the every

Thanks John.

the any impact outlook it’s first quarter. which Choice, to does our begin, the that XXXX not acquisition important Xst of close expect I Before America’s include during from we to pending note to continue

the a XXXX. footprint by and of in we In another be cover be XXXX marketplace. the of In the with operating our business. total, to increase membership in in of more little solid fee These in XXX,XXX. billion to more consumers offset than of expected the ACA the partially a year XXX,XXX we return $XX.X growth expect revenues in overall to to government impact increases impact flat than by grow billion XXXX, expect reflecting expect to enrollment range membership individual cost to government, higher in revenue compliant served. $XX.X to rate health our the of reducing insured growth relatively PMPM will Premium trends down medical We insurer

decrease However, footprint. because reduced members, expect compliant individual our membership to XXX,XXX we commercial about by ACA of

the about We as lives from as expect recently partnership organic reflecting Medicaid add Minnesota growth contracts. well XXX,XXX to announced existing

growth During enrollment business, offering growth we expect in active participants of the approximately to individual X-star we plans. of to members, overall Medicare individual market advantage project of and decline our the members X% over double-digits RFPs. various little has than million the to insured, are also commercial projecting next driven enrollment the mid a in our in an in represents more will This Medicare primarily, our increasing fast months. XX average X In product we With year, Medicare X%. be XXX,XXX percentage advantage by

performance rating individual actions of an took is and in where approximately only decline the in compliant predictable. to expected regions non-ACA Our by markets enrollment to we the financial participate is ACA these XXX,XXX, reflecting we have appropriate level confidence that

XX,XXX the in increases momentum in insured conversions of expected fully funny group as and growth The securing about to increase to with resulting to look positive commercial is group commercial XXX,XXX self be insured decrease by contract wins rate by is large employers and national result enrollment local of lives offset impact a fee. Finally, insurer from approximately employers. the in return maintaining to expected from by accounts as lessen of insured which enrollment, health lives in our self-funded the the funded, will partially XXXX retention decrease new fully rates in

We expect our slightly down enrollment be BlueCard year-over-year. will

financial Such a XXXX, all fee XXXX of this financial of insurer to reported major the metrics. to comparison our a health in on the Turning metrics, will return the basis impacts be distorted.

the of at decrease of impact XXX midpoint, expect reflecting the basis the the be to our a XXXX consolidated MLR points fee. largely insurer We health XX.X% XXXX return versus of

the MLR slightly our impact, better flat fee Aside than is XXXX. outlook to from

mix our reflects down while across on intensified to pricing. result focus These by is our in the the the premium of in of profitability care approach in deployed partially are Our MLR the a Also offset the from improve targeted disciplined which impact towards consolidated of pricing ACA-compliant outlook the average. individual margin improvements and cost participation a higher is the than a businesses, an of our strategies to business, driving XXXX. coming government business maintaining as range revenue projected change

SG&A We which of our expect from an ratio in XXX to health XXXX be the We XX.X% the in the the return of also reflects points the impact increase XX.X% of basis at XXXX, largely midpoint, reform development using areas of a referenced portion incremental product fee. technology tax for modernization spending capabilities. digital consumer-facing as earlier anticipate corporate insurer technologies of investment efforts, in and I the the benefits

individual some market, positioned our cost $XXX $XXX the interest Finally, to appropriate. be certain XXXX and to allows in we of we markets to will which approximately expect expense income investment approximately us ACA-compliant Below if million million. incur of continue line, in reenter

to rate expected We tax than non-deductible the return the the expect for greater reflecting health the impact be year, be our of reduced to of the to XX.X% consistent corporate of insurer partially $X by in is tax fee. range cash XXXX also Operating XX.X% at billion. rate flow offset the relatively with

XXXX financial XXXX well as offsetting cash corporate were increased by timing these compensation benefit of the related reinsurance to of incentive core to XXXX tax impacted net headwinds reform previously, positively cash discussed flow earnings. we claims receipt cash the in the is as As flows and Partially operating payments.

impact XXXX. We of expect the in activity from benefit XXXX and XXXX repurchase also will share both

throughout year As more activity look a of activity heavily year. more the towards the back half the XXXX reminder, repurchase our was our normalized XXXX and will weighted share

the Our expects we offset units in of worth $X.X have do XXXX. we XXXX XXXX shares outlook during dilution more the of certain issued than impact will activity May have equity that We be the to in outlook approximately currently and issuance. our assumes repurchase to equity billion of committed repurchased

As XXX million we average in share be the count year for XXX now to shares. of expect a range the result, our to million

We between outlook less a $X about expects share gross two per a The per tax best two of will reduction long-term to evaluate will the growth. available to continue deployment XX% tax the our a net use difference than $X drive to year Anthem position capital of for Overall, rate the our items. benefit strategically for corporate during of little share. of these reflects numbers benefit and

expect in higher MLR rebates contracts. and other we and Medicaid First, refunding pass-backs certain

exclusion turn difference priorities benefit estimates XXXX the earnings these $XX. Additionally, share deal-related our over funding share investment is intangibles. With estimate greater between Q&A. tax our of earlier. amortization $XX.XX is than is greater the than that, out I the you for back will of and per operator the roughly for per of outlook is to adjusted laid two conclude, the call XX% earnings The To incremental we gross the GAAP

first from go Thank Credit line you. question A.J. Rice from [Operator comes Your Suisse. of the Please ahead. Instructions]

wishes role Best I going new strategy Gail. everybody. comments ask some Welcome to Hi, areas your there. jump off about. was about in two the of to of to Board quick in

up. XXXX, highlight guys bit if to I engaged in to the know to in selling it the accounts? you First, on actually am you with see in season in looking would a most I looking know wondered IngenioRx milestones maybe do think X-year terms the how of given highlight I touched that happens for fast it any about challenges, XXXX, to you capabilities get XXXX that would marketing XXXX, aspect or fresh is at stand try you outside eyes little or opportunities it but would wondering contracting, on for what which are you track, with win then you and of

and the great. you comment. thank Well, for Good morning, A.J.

that comments your commentary his then thoughts, and me am IngenioRx First, on let add Brian it. overall but to my address ask area to Griffin who going also I on leads

with think as Ingenio I about for frankly creator it’s the great contract value CBS, foremost, First and us. quite

our billion with of really to our incurring XX% incredible for shareholders opportunity in ability us. $X basis of a gross comments, As deliver I on savings that greater than just my to shared pretax opening

here and is execution. focus first foremost really Our to opportunity on

a got on that contract of business. optionality have very We and across confident lot book our in that in of execute to our ability remain I

bit want very I more the maybe have on do has a But working little the how been and Brian see flawless a that. was future to that. ask team for outlook to focused on been our execution. about We together I will comment think We that

is commitment Gail. the They been am I would can terms have have are with appreciate, level Gail’s including seeing – ensuring this like the of of At XXXX. be the to we doing key interfaces to starting advance very very going CVS itself, Good much engaged A.J. morning adjudication where discussed a and us. to have relationship. very Thanks out the that And our our building in point, have implementation obviously things impressed we that with just detailed They ensure I got we putting systems we Relative very in the as well been etcetera. processing, point dedicated they looking engaged process. are you have directly put value parallel testing itself, implementation are in environments of out are implementation impressed factors dedicated position planning leadership the of at that in had of their resources claims I metrics, success senior IngenioRx with that user that a plan to team realize to across will appropriate the into division. testing we And very the also in the us terms well-positioned,

heavy implementation too detailed are a itself. against to at plan, several and very of finalizing the next focus look in to we with terms going that on So implementation then getting metrics be the start process but without itself where implementation we testing that will plan over quarters detailed

been capabilities here. Brian. building would add PBM our A.J. Thanks I we have just also own

with So execution we addition transition own model membership. of the up in are the standing the our on them very working to of closely

and very progressing about are this. well things that very feel feel overall So we confident

go of question next comes from Cowen. Arnold ahead. Christine the line Your from Please

back your work am might how plans might you economics on particularly thinking small talk they then are welcome the have the and separately for you association health a and that Blues partnerships about on in Medicaid how bit business? side interested Could the and Gail. the particularly I there, Thanks. about little impact Hi these with group

Good Christine. morning

the that partnerships we the Blue – Let strategic address with partnership. me our have around first partners, question the

have understanding we the a opportunities the my Blues, strategic service healthcare company time As come with partnerships one and have. is Blues to in overall clearly of seen I have I things that the back the strength and the of

only their network. Medicaid the health are platform and doing basically other very, local have we of relationships very with the we leveraging our presence. market We the in Blue partnerships over platform five what is our not with in And plans Amerigroup these of formed and have a provider with expertise in strong Medicaid strength

So that’s on in marketplace. really presence a we and investments frankly the think leverage us and return an that quite gives our strong depth greater capital been opportunity for for allows us. It that us investment our to

package I I already and impressed another to the other inside invest work for example another that across for great assets been the some ability it an we I opportunity you Blues opportunity in to that subsidiary see really have have by with us scale again of system. some think capabilities also AIM We shared other lot great I have and of Anthem of we a that to our And is partnership. other do strategic that, that strong continue that’s to capabilities. very have And with

space positive terms access the supportive have that about of our consumers of also association we of it’s association expanding products for offering small we quite across bit continue on for a feel our working We products, I work so our are very are book, presence positively types to something will of of doing think plan, and in there obviously new marketplace. is because that but a and businesses book that. brand the affordability, do pretty expertise of health I different overall business In innovate in in quite across frankly so group our

in think health another to gives option and So with to consumers us plans. overall it option us continue it market an for I put association additional the products gives

ahead. question go comes Rigg next line Please from Deutsche Chris the Your Bank. of from

spending saying going expect I see you potentially tax that thoughts tax spending investment then is reform get over generally, to of just line you first and chatter to back the this tax separately your about the morning, Good reform wanted just California I think are in something $XXX you Thanks. or reform wondering time, you to you million-ish was are touch to and year, I back. then on guess spend to New investment the some the claw benefit seeking just on that? something the would York on dial out love And over ways long-term would about heard with some of base

Thanks question for Chris. the

to is us And are simplify and business focused pretty Just tax one a and migrations I XX% system is on John into things of benefit opportunities predominantly in first see our that we our and I maybe those John destination little that about plus going shared the as acceleration of already we couple a getting growth. the about I tax. to think things digital terms bit investing development I some product and will thinking investments to significant of continuing are are modularization. that started platforms in capabilities more the and picture color let overall we But had are on how accelerate. give

you and good Thank Chris. Yes. morning

lower I directly like And Gail true to the is customers of the XXXX. to going that of share return So members through just gross the in you with consumers. some of marketplace maybe XX% in then the that and accelerating health XX% It’s And and either it. About about. going how taxes in good then dynamics the thing benefit up XX% drive said a maybe receive a the as help from terms remaining investments the with the associated that. spend minute I go through the just history of reform we and rebates the tax the affordability have when really the reform associated shareholders. that will of MR or as really that things talked you back will tax And another can with guess works to

and the have focus market our in ongoing is new us to adding our our question spending model, to growth continue investment specifically growth And to has will strategic an investment allowed with to and capabilities. in we reform leading tax associated Your priority investing initiatives. accelerate

we As capital is always the business need and in to we reinvesting very, something that’s look on of the something a we believe do. continue to at very uses list that high our

go Your next of the ahead. from from Research. Josh Raskin question comes line Nephron Please

your you about ask Medicare to I the first Echo at wanted And diverse looking but curious I role statement know curious assume on number big from be augmentation the did acquisitions type as I Anthem Hi. XX,XXX you I for the there your on a say it’s think if provider comments, a to more obviously true $X Gail could other historically And their, been I is geographically there get working call capabilities, I for up on new morning. it’s about it etcetera. looks welcome well. in the some just there, just I would so be get changes of thoughts on advantage and Thanks. like together, is to team, but flow am maybe would stuff as billion people lives, cash there talk HealthSun there hard just in Good together? this, need a some the sense or side, perspective management business a to management interested like will do for that team is screens then to the the of more little you is explicitly closer

Well, morning good there. Two and you. questions thank in

start with to touch me also some on HealthSun commentary. I then NFP provide the Let and team will management

continue a will to of also adding in time. our to as discussed the those and several meeting leaders, in days talent place I and the a our XX assessment our have them today. to going Anthem to talent I add of across in areas to of digital many I feel and business. all something am focused to the we and the joining be strong are team with of going leaders meet capabilities the investing forward and capabilities new my as really last those do will overall course we is going I managers to that’s country build continue opportunity over leadership have around we understanding are have be with spent next consumer First, deep to frankly that we some since is with the the engaging leaders had team I we our areas quite we strong have months But through a Part and areas. that look I’ve we that and in do of invest that

on actually the terms have to a think strong and how opportunity am with brand our which In I together, why bringing unique that’s of really and that has opportunity. they of work actually pretty I about excited scale begun some local that execution the and about as opportunity presence part And growth. we think already together, focus market leveraging I

leadership. market I offices markets presence discipline see bringing as of corporate So, leadership segment taking and our and that of really in those our a our and advantage blending also from with our scale

So see actually we real again, I a execution balance nice and new and continuing on there at have leaders. our capabilities. products Medicare Medicare, and I our new opportunity to and on about the am commercial And about think focus a very market got bullish I feel level penetration bringing good

a we think I will the in second I that feel growth on plays space. your little Medicare because commentary start my of question, bit, strong into have terms I that it the In

of been the the X-star members you us gave Pete from and us see are clinical which to have in leverage of plus members, the us nice is penetration we and to some in Xst America’s gave Florida really in and investing obviously, in now he just really that he of been because competitors that and in Anthem think an than the over space market along comment, several very I has on a right plan XX% some Medicare into ask the you give capabilities too will done Over with results in plans unique are our those more color work happening. it’s and me plans, key last the And repositioning really among the as Choice community. the that’s footprint Florida. what’s HealthSun detail, health and marketplace. it two opportunity scale business deep great years, leads X-star in that But go and let can much before I gives

of really we a which Gail excited large lot, said us geography transaction I are what Florida, Gail think and a wholly-owned in Advantage a Don’t will morning talked included about about the really care of in this about this Yes, mentioned HealthSun market. XX,XXX in terms XX key are Gail for transaction Josh you just isolation we and Josh. reiterate transaction part as members and good capabilities centers. Thanks in think important is Medicare

the of business as a few dual the important being asset, chronically add very focused are plan. ill. companies I have eligibles. X-star effectively a very our a of the chronically nationally on part will And ill high-quality managing talked about obviously forward that managing that going well We We managing as one then

southern South also Florida really part talking lot opportunities the Choice, Xst state. the well state the America’s spanning excited part So, Florida. we we of in transaction as growth are and of of about are with in the as down of central of in a that both combination state this the the And exist about

question comes from from next of ahead. line Kevin Fischbeck Your go Please Bank of the America.

Okay, thanks.

headwind XXXX not coming guess your go wondering thoughts I the in that being to but this if to taxes about any years? minute back well? for the today to share the want actually in talked Just into a future the I factor as guess back And then one of XXXX, have you you per competitors a in as do XXXX, was guidance sustainability HIF I into of in that $X

the the Yes, being are with second thank this you, pleased answer HIF waiver Kevin, or first waived course on of the for and – I question we XXXX John. will question first XXXX. is the

to taxes on given whenever on HIF and so in healthcare the back. I two had $X.XX earlier, XXXX now in. regulations that’s XXXX and headwind those we helps came premiums that’s the how and $X.XX work stated, processed decreased and XXXX, our the And As rate coming stated into about and so through the pieces renewals as of growth with HIF, midyear all affordability

you the and can when that XXXX you with actually XXXX. renewals mid-year then XXXX do get create a from XXXX into So associated tailwind

Gail the included going share earnings through. those of yes in that And we So than something mentioned. it’s greater had again things to that comparing in manage all guidance all to per we the are are already number that $XX provided

are believe address the reform tax to to how run the the can this need on the we point very the to time, be of it’s the reform. continue And a in really And of premature from with associated that at growth speculate point some in time. maintained, of our can’t help will accelerating it percentage rate we opportunities. be reinvesting drive we that that really more affordable that really competitive put and marketplace We business terms much on in of number this terms products a opportunistic believe with sustainability reform competition savings at will in In associated we in in regards. tax or with a sustainability tax a

of question Leerink Partners. Gupte go line next comes from Ana Please from Your ahead. the

of like Yes, trends, guidance near-term could Good on see good thousand strategically medical question had for market the Gail, relative looks your near-term enough points go the get cost advantage, to XX on would you congrats morning. be Hey, you is and there have My would of both and back. great higher is you apples-to-apples hospital the cost competition larger starting on to had relative basis that so your think and are to thanks. in advantage long-term get this either share, to on while is it up? you you then are put public utilization pricing competitive any XXXX to that the and consider see is per medium-term market the beginning we pricing one this the three that local leg you And there volumes. to to do or doc, conservatism are or care yesterday pretty pressure a we components centers a be the beds share might just likely buying strong

questions Ana. of lot there a is There in

will try get hopefully So to I of each parse them thank we will you. to and through them.

on our XXXX managing we trend where – focus overall. our under little and costs his finished the our X.X% new essentially methodology And our range. commentary which the or to with to. then actually give guidance under low was start put in finished end intense a first John me a guidance of at bit of Let ask We at

invest in really we care a business. big to integrated moving care continue believe across that been us. business. across of and I for front that’s I payments just our continuum in specific a a based in So care, commitment cost cost more of our has leader Anthem differential of that has than our been But think those initiatives along to an had area And value across we and care across providers have and investments that

year trend. we watch a past, increase trend flu of think think seeing are X% our and trend of roughly basis obviously we to As continue obviously our do forward And very minus what inpatient of the look XX about plus forward we given we view about as we baked how into of And assumptions. stage we about into are And our had of we of outpatient always we point it that’s you across that we basis about a obviously the taking etcetera. trend this at more have view basically than have midpoint intense have the season or the XX points so and we – businesses. this in consideration have we that’s each prudent at drill is overall, detailed very components down something a of at placing pharmacy, all

I asset In strong much have model very our know at would terms are but terms the sure assets. to is facility right also only just in and expanding CareMore workplace. based, opportunity managing have government had more spend that that people of And we but assets we some it delivery be that the the in point populations our expanded also am like not business results to at Medicaid your we one other I with not the if not our that in Medicare, that now, very, in to I to our of seen assets question acute home of how about population. things time use care out

and platform. continue asset of that a acute strong elements nationally kicked nice most upon, terms really has our managing us footprint results behavioral off some expand of to readmission population, gives isolation scale and loneliness think program around to we it to in a integration recently that across So social and delivered rates and

in some is work good on going there very CareMore. very, So

what So, our in numbers of turn on guidance. I a of well CareMore clinics provider what we to market grow. which trend But that our as more bit have John give and sort color Florida now integrated I there really our doing between upon we footprint a our are feel through nice care payments and then maybe value-based as we our around little the over enablement will it to the do to integration down

Gail you, good Ana. morning, thank Yes, and

But In and the the a C very to an formulary impact how of allowed terms range changed on statement really that of of lower increases during financial paid our our in That in has trend It expected utilization we it issues. healthcare look the our from we to up our that than basis. a we trend, clarify in to XXXX said, lower are believe utilized overall. methodologies. to no change paid want terms of versus no basis metric with really the I do spending just we really as basis provides calculated impact end It pricing expected allowed with a healthcare at low Gail has is view overall reserving. on effort on and better trends basis. lower is the by than no that to this metric driven tighten impact hepatitis has AWP year, cognizant on It at trend our discuss

faster single Really little at range. are did raising overall basis consideration. going for the a course, the the quarter really into our it that then taken than we flu end midpoint into drivers flu bit XX the at the up biggest the we we is pricing of points and have the the the of the here and Of looking of trend are bump AWP at XXXX heading fourth

Now, though, we all controlled returning everything to a a well else very you for Thank normalization question. in the are really believe we trend is of process. a and more

go ahead. Your next Please Sanford Bernstein. Wilkes of from Lance question line comes the from

role. Yes, again. Great Congratulations speak with to you on good morning. Gail the

to really is cross-selling just value-based that related the care and own less are care those more the the about market share trying if it and really second trying One your question self-insured understand delivery strategy attractive understand a I further have strategic biggest be to efforts sell in you questions and thinking Just attractive providers makes nature. your markets? side is the some in in on and where or So particular other two to market? quick and to market there easier to then to able your in into add focus need to you capabilities and that think opportunities lot. what are thanks And

questions. Thanks the for question. two Great, Again Lance. again

I very partnership, we our around with actually right have impact share, the and in appropriately from providers because has comprehensive of full through that’s approach our one first we an the component fairly the shares referenced. way that’s which enablement and capabilities all the value-based take Absolutely, best-in-class And costs had market feel approach approach drive me think and market of marketplace. is gain risk-sharing incentives the Let it. medical think to on and ability a primary our share you important I that

now that I our standard CareMore and certainly Another with how mentioned the as are with in of is the are across model country. augmenting market done also have the we more the market things Florida then clinics that

one value-based the think strategy. to of have moving best strategy I as around what payment. stated We marketplace more a an So, opposed it’s to do fits us overarching combination for

and expect we to forward XX% would We continue going with are move now over work providers. to XX% and over to

in second in in rates remarks. seen In question, terms the of improvement vision your shared a that investing have prepared my dental penetration, nice on I specialty particular. have penetration and business, of and opening capabilities our been we the

seeing kinds a ask leads that and give Griffin the maybe Brian penetration think positioning, area that what with product who technology, sales we about in improvements we to increase businesses effectiveness. different to there bit working marketplace. rate support rate significantly. significant Our on have upside even little of a that investments is Obviously on the I again really that broker continue by the are things Brian? penetration he have we commentary there will product, we that had can been is there of

Good morning. Gail. Thanks,

In point, terms to question penetration all the of specialty products. – around really key significant your across had of our the success specialty, we’ve driving Lance, Gail’s in

That specifically calls we Gail’s in earlier relative opportunity I To Obviously, think have be significantly in bring and market you a unique products, And point, we significant heard around markets. have I about more our we interest group talked large can and in we the believe there our that value RX and this incremental point interest that, that disability can that I PBM account value Obviously, do pharmacy at the to is national to proposition do think you talked that integrated previous are is marketplace. of have message that I seems dental we value implementation up. there have those but in our vision. given in think to there. life seen and about about talk medical in are we we that significant seeing proposition. own me and seeing where that particularly resonating together, there are and we in proposition

propositions I of integrated then we us single value a about pharmacy because to in altogether begin all dental think that will help can across package. vision think and broadly more our products, actually across

think is of point repackaging that to in value that can I of drive rate. So, there bit Gail’s the terms we quite a to proposition penetration do our

the large in look into to them with and bring other more Gail made brings It specialty evaluation products. alluded investment is to regard various designs, it easier the our which to brokers significant do both that plan investment at a business just full candidly group. designed products that really product to in to small allows The to efficiently compare we the key is portal, and group broker in we us our really suite makes it and that allow

was we off. paying that that investment see an So,

result a of rates think great penetration broker the We deeper it. and from community we get will reaction are as getting I

questions. your for Thanks

please. Next

Your Ralph Please Citi. Giacobbe next question go comes of from the ahead. from line

offer maybe there with morning. your commercial in again you an thoughts sort particularly talk evolve your Good then that position as potential you there? longer term risk? obviously big models Thanks. the of within position be vertical deal lot near-term maybe profile, of largely maybe and the positioned seemed And margin would Gail, comfort to just the about product landscape disruption Thanks. space, insurance opportunity to more in during like where can than of the about competitive see a just broad maybe sort we terms or

Thanks, Ralph.

positioned. terms all started brokers product landscape, Let face And in to and to and think capabilities focused different our I about through I businesses. our as investing growth, growth the competitive then clients to parts execution and be fairly going I and modularization, be have for quickly I I back how think the where landscape again that on of get externally will and try remarks we more to off of the to your and I am of of are more we in I can across well think me we the opportunity actually in we product in significant are think are of investing go terms we in the agile. simpler market question get intensely my so can customers we we

where a is we the I Medicare with opportunity the space. terms I market will of In what start space, have significant overall think

historically in market. have been Advantage individual Medicare We underpenetrated the

continue scale and I some in very we nice a and think well dual eligible strong acquisitions to us Our very give we market. do the open will had enrollment

We and growth. and the position we so have well as see significant strong capabilities, a will got star help rating that us those strong

in area area extensively I that the the other in Medicare about participated is that market. not The haven’t we group talked that really That’s past. an have

that marketplace been think frankly And capabilities. going very to brand opportunity very have an and have going we our commercial Blue forward brand to because well our of into strong in Medicare. business build to We the or enrollment the Blue resonates I quite of with we book think do see that agents book that have keep we to also investing area strong current are from

we RFPs. of a to to are we – their in to because one for assets acute $XX regard. well compete pipeline really managed an and the and it we and really take strong both asset have see area having billion and marketplace. will helps in the continue services but margins extraordinary marketplace it’s allows cost in in XX% I us most opportunity positioned of in that care competitively to our deliver an do the patients. some of that’s area and also best-of-breed this population certainly for our opportunity the improving interesting us there, those that CareMore market. of have growth been for been think Medicaid and we We and compete side, X-star Again, with X-star specialized results think outcomes have And year in investment ill and care, a again In do So, I that are

that’s So, an opportunity.

recently our expanding partnerships Blue that as be that the about then we formed into there And opportunity across those are talked think population. we well for formed and other have We more also we will brother. recently Medicaid we that partnerships - and plans Blues think the as we that

there’s of again our with On and put ability product the I to expertise our market partners digital affordability in ability greater manage on the work into commercial but market those margin think opportunity into about is we capabilities very, for with have part our as leading more how solid do access that market outlook again I Blue feel and our the facing improve with to and XXXX. making we that see for leveraging we that I share, think commercial there, margin us an consumers. streamline leveraging really costs local very and and we have but focus each brand, those also and of the good accelerating profile have side I we started profile investments new market we’re Again, opportunity our our medical to

think inside already and evening an good have So seen we of can to I’ve of across to game those I that delivering the may invest more. scale known then we is I that assets, system well back increase Anthem, continue again other opportunity think which and those going a in be the finally as priority some will value and again to don’t there enhance

overall good heading for the players pretty, there question. you many the continue to shared, the of environment I to Thank positive So I is obviously positioning I’m in that are we’re future each feel in our in but enhance space where in and and focus a about and very our about our the competitive pretty competitive execution. environment, we our markets opportunity

Goldman comes line question of Steve Sachs. ahead. Please go from next Your from the Tanal

guys. Good and Gail role. thanks new Thanks the morning, for question congrats – the on

being discussion of sort forward. the on contract kind opportunity around and and moving follow-up wanted Just value-based thoughts of

states little inning we a provider factor. frame like a I just expect the your relatedly, penetration XX% and high sort then bit bit number, So from the bigger maybe maybe you of separate I in are and you sounds guys localities of moving guess were on the what like you overall and those also it kind space shares sounded mix way would the to perspective wondering, could say into so opportunity were are it see here. risk highest? Should the arrangements lower in but if where was earnings

question, the for Thanks Steve.

inning way would about truth that when I lot we industry. I frame a probably – and it’s terms and it’s say entire what great the across early to In think of think a innings

find care. I greater looking integrated for all ways to We’re more think drive and affordability

them as have to take and a willing imagine where we are, a be provider the see our try to of part you market so is across love meet investing we’re enablement And also to where more care capability. they of would relationships provider breath community we and in can we risk

to we say, they that that’s some would on from I to providers also to them we continue each again share we’re to So work the maybe relationship. realize have care about taking focus come that you going risk moving that more upside participation. – fully relationships be along gain more not But a building going feel downside the to just of comfortable and the to perfect with to and for – those and

are to of capital to do assets think in see advantages of look to real feel our and share. where going we we model do terms drive we where we and those, the of In use own in we’ll one deep makes again that the best partnership ready our those, overall, capital is markets, we we’re invest sense, some good the leverage on but value focused have because focus continue the and return market best to of we that about use our the aren’t on they are we some

real all across as work can deep partnerships a we opportunity. serve we of because, have businesses, market share So we in the see that

of your from Justin Research. ahead. comes Please today question And go line the from final Wolfe Lake

for Gail Thanks well. me as welcome my congratulations and I’ll add and to squeezing

over or could competitive Thank the drive time your that of you earnings First job in view has going here? PBM, improvement on the but savings of to at of core positioning what question shift end how good company we that bottom from your you you. And to hoping period? be is are what focused benefit the here of retaining follow-up should a I laying out be areas Gail, earnings could my or then come higher going benefit to also X talked the out X from flush about that that the your line, the to top on the the target returning line And done should $X billion was customers. XX% you significant the and are to more

first, give Justin Let of with commentary. to also me PBM and I’ll I’ll question and second take ask your half your then the start his Brian

outlined in our think per both where it’s in share that we I our top opportunity individual, to terms what Medicare opportunities at And end effectively also leverage the drive, the commercial. guidance, and capital in of the partnerships opportunity earnings I Medicaid. in look of to the I’ve growth will group see In be that opportunities

underleveraged The other the I existing been really of that area has is think assets.

to think think have lift just that are initiatives that nice that so business. had much pathway name our more we those and see detailed us for I us assets marketplace real type giving the in give looking execution the on to leverage strategic across a we So, of growth a across and in Blues the really partnerships, we I the I that other form CareMore the have

terms am know I going this. has been directly, in I the Brian because questions, all In of to of on to he those maybe very directly PBM comment ask involved

Justin. Good morning,

all really guess Lance’s I to and moving position full financial different taking competitive our commentary I as question, very launching levers, the key really with tied of think Just us back a forward. my control that a PBM think that on us result I puts new over in

overall Our Ingenio focus And industry has than PBM that’s I through very different looked outcomes. is think that way at health the on the better that. really

well that value costs. And rebate a pure there Blue I business, focus other opposed a already in has that integrated resonating our own utility that us I in both within growth and our system Ingenio think of seen a platform to think My as ASO really healthcare needs optimization focus been that terms proposition meets have interest that’s national building that out for total But as think on I really regard I as local vision plans. developing. And we we really is think really result nicely business. the I our of is the are a driving on the market. of become mentioned our positions for to as earlier, Blue in but

So, I see that as a great new opportunity.

improved we our we as broadly. a of I driving new in as We That have progress better continue terms us for be just designs made terms in already, as And executing will strategy new against in Ingenio we launch well position. think a will XXXX network focus have of be significant values to result competitive strategies. a in overall more as formulary

participated. our to business, our looking large focus standalone outside local group group excited ASO new over opportunities mean really are growth the growth account small So, to of customers, local and obviously, national within on growth and expect at to markets, we Anthem going that historically us position really years, of as are in at expanded but both pharmacy what sets point, new Blue last result market that offering here for to we business then of the see clinical services new our to where addition And new through developed opportunity. but contract flow the will several as as well about have of these savings so that will as significant terms your in haven’t through markets, a opportunities new us in additional that our Ingenio a be that been we we

put other in see on Justin, three for for our Those the maybe drivers PBM in new And I health just fine really of will will we volume be drive book increasing Brian. things you, being existing key a will RX-only plans. success three medical forward. point Thank the the and has that us granted RFPs, our penetration business going rates

Well, of all thank thoughtful much very your for you everyone questions.

a affordable more tell Anthem hope I As I to be healthcare advance am strategic excited here can and our that’s opportunity simpler. to the to at create system priorities you and

high-quality for company assets will associates of ensuring the business I our want As unique earlier, sustainable each position earnings our we leverage I to optimizing focused outlined on strategically that thank execution be and our across growth. for we their in to to with deliver on each day at your I the and Anthem to interest to living you and every commitment Thank future promises to values our events. for speaking Anthem you look our for and consumers. forward

AT&T using conclude teleconference. participation for gentlemen, that executive and conference you your for does for today. and your Ladies Thank

now disconnect. You may