Elevance Health (ELV) 24 Apr 192019 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Anthem First 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. turn over to management. the like now the to conference company’s I

Relations. this quarter morning, first and President Rigg, our Norwood, is Investor Anthem’s welcome CEO; Felicia Vice Division; and Commercial with XXXX of Good CFO; to of This John quarter Gallina, and Pete Boudreaux, are morning Gail earnings our call. President and of And President Business us Haytaian, President Gail Division. Chris Specialty and overview will begin results, by on call comments an updated first John enterprise-wide will initiatives Business the of then key giving our our detail greater XXXX discuss over Government in and financial priorities. business our by followed outlook. our our key metrics go financial growth

Q&A. for available be then will We

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

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

$X.XX full-year start confidence decade. we increasing to are growing earnings call. growth GAAP $X.XX, than share XXXX thank share. driven quarter of and by we and share with per earnings joining Good momentum, membership morning, of strongest strong per per risk-based $XX.XX per quarter for in adjusted greater you for guidance to in a nearly With our adjusted share our earnings Today, first us reported a Anthem's earnings first

and growth in-part developing coming we we growing across with Investor At than from consumers that Day, quarter, our commercial enhanced all easier business portal us. medical for risk-based suite new online our membership committed grew and broker and more by and offerings, employer We’ve products to first consumer business broad digital business XX% a of the shopping brokers lines, business making with service redesigned our of membership. our During processes, do total to it by streamlined customers tools. XXX,XXX our

added During than over our nearly quarter. of improvement more in the in quarter growth note, business XXX,XXX group Of gaining Outpacing our demonstrating decline the solutions year are fees in first and digit the specialty the risk-based our quarter, membership membership quarter members. clinical by commercial increased the reflecting a over mid-single X% revenue the wellness increased Administrative prior XXXX. traction other fee-based that and sales market. of products substantial

the and XX% first by in Advantage by unique Our benefits. supplemental nearly driven above grew market the Medicare our enrollment quarter,

launched part of care. and determinants can social which as benefits healthy such transportation, care, As our Medicare health expand offering, in-home coverage of a benefits in we day personal meals, for adult members package

outcome, reduce person on and accelerate to deliver cost, the caring is care and Our focus designed ultimately whole for growth. better

Medicare Advantage Medicare on year-end expect members. enrollment are of track continue XXX,XXX we advantage our deliver to and of to full-year We XX% than group target on nearly greater growth

dual Advantage product special the enrolment approximately XX% strong result a plans. Currently, special of our annual enrolled outside coming in seen As needs of dual our of Medicare our Advantage offerings growth members, historically members over of needs period. XX% Medicare we’ve and service are from individual for individual

and January. Blue our Blue XX Over successful Cross, the XXX,XXX nearly months, Shield, the in Minnesota added last members of alliance members in Medicaid, including we’ve through XXX,XXX approximately with launch

partnership expect We growth. our to accelerate continue model will

and Shield, the expanded recently with and population. and Carolina Cross, North Blue agreement Cross, near-term a the Blue through dual for Shield, Louisiana with eligible Blue Over Blue

look complex in Blue of Aspire and long-term care. move to be into are we choice the differentiators clear but states, These chronic peers. for managed and partner as our medically As own us states for CareMore position care populations growth us allow like solutions offerings value-based ahead, not only our

behavioral Beyond a Aspire, are life quality and health for private time housing, as by social the to also permanent XX% while program public moving The targets provides and them Blue mental inception, in housing. Blue individuals of partnerships spending developing health has XX%, additional Indiana’s support. needs capabilities Triangle and at faster health unique XXXX, inpatient with and of such Launched physical improve XX% and CareMore emergency independence participants members. care, by variety room unmet cost the same our program reduced seeks of Program. into homeless Medicaid Triangle with of Since we program the and the

in focus unmatched market our reflected We care. have are partnerships relentless Medical cost our and managing with the quarter results impact to the can members pleased on driven expectations local and with we recognize care our Triangle performance our in-line our communities. of by with the overall relationships of is Blue was and first providers program presence. The our built cost bring the

we XX% XX%. from expect payment personal tied We expect up up to we from strengthen to spend our value-based tied we our care end our the for target has XXXX. savings of $XXX lead penetration. And of model to been The value-based industry to enhanced value-based and generate expect well-positioned healthcare shared continue personal By the our medical nearly million have XXXX, savings XXXX. we will programs, of relationships customers enhanced enabling achieve in during be and those healthcare XXXX. like consumers care growth programs through XX% XXXX, are to XX% to in to XX% of Anthem in of substantial. All-in, value-based Further of care, XXXX

by rather call, phone, out text, call waiting email. them supported Our efforts artificial allow reach providers through than this And proactively when are them care like happen programs AI adjustments, basis that cost on that service, trigger via us. experience, which and determine to cost. AI of or care. program in us intelligence referrals, provider as our consumer the to regular requests and as to claims or and predictive patterns understanding events authorization improving prior patterns on value-based as enables well these care a for we to care link reasons members Based might we the both can such

we providing we’re our support regarding well to and part to and role this in and believe more and In consultants, risk-based conference. point and Turning discussion and to and rebates of move have the total month, hosted fee-based business, the specialty are leaders drive employers their flexibility current is from for our as In by to pipeline. ranging this to desired IngenioRx earlier evident proposition brokers, the we benefit leader. topics its care as clients. designs provide we pharmacy strategy. business client to and in build health built attended year market. IngenioRx Blue how therefore approach prospective health, than increasingly our business, Interest is Medicare thought true should of value-based the broader our a a discussed pharmacy our second for IngenioRx its annual benefits Attendance was networks our continuing In prepared IngenioRx sale employer doubled plan is and our the prepared lowest the say to XXXX, will consumers. value we same as business. approach absolute cost planning commercial do to becomes

May Looking preparing of X. migrating begin are our the of of we on some launch in stages and members ahead, final IngenioRx the for we will

experience focused solely individuals X,XXX a positive We've endless on focused have We are testing conducted this our for members. and on creating transition.

in they transition clients We are to migrated. of ability for confident are who execute as to begin our this will and IngenioRx benefits the realize our members

ready track Investor are a noted on financial commitments. Anthem. to era we that are this and on We our new Day, we is meet At

by our strategic intentional results strong moving and Our culture. plans our a driven business and share forward on focus are today

Our our and of our and purposeful, than guide vision, XX,XXX values associates at bold mission they They Anthem. this foundation. are in growth more time clear, are and

themselves call discuss create first financial is outlook. to change serve. now, revised to focus on those turn to team more results over to are real for the XXXX we of And and quarter will I our our culture and the fortunate John Our expect enabling

the earnings prior per adjusted Thank good again, reported strong to $X.XX we start and quarter a of Once year first with GAAP $X.XX, of you, year morning. over Gail, share more and the of share XX% growth per earnings than quarter.

grew our risk-based Our membership driven significant million businesses. first by business, lines driven more across performance membership by medical X.X than lives all by in quarter growth solid year-over-year, of growth was

focus business, quarter, on our During which membership the by followed by execution. of is added XXX,XXX members, reflective increased our commercial XXX,XXX members and government

revenue $XX.X to insurer revenue driven of billion, ratio on XX.X% the in by year new enrollment grew the the in medical all increases significantly and margins increase cost entering was premium Medicare fee XXX in the in with largely Operating in quarter in the fee group loss excess Medicaid prior even insurer X% are range higher XX% of up revenue, XXXX growth the Medicaid waiver quarter XXXX within first of of lines dilution prior The health our business over driven our operating the basis the impact over the target cover The points and an was business. period. to quarter the lower Medicaid of and of year trends. overall quarter, out core-operating and year-over-year, one-year first of by health long-term absent state. revenue in businesses period a our increase both from Medicare First was

of comparison factor within as these of last contemplated routinely retroactive Medicaid quarter-over-quarter guidance government and in the in our rate Additionally, rate ours. period division. several year, the in adjustments was is are The large out adjustments a of out within in and disclosed There business. of diverse we non-recurrence profitability as portfolio business significant quarter first our our the adjustments Medicaid retro period

latter in insurer more points XXX growth of support to expense IngenioRx. We quarters SG&A quarter ratio do cost three fee, the in including ratio the of XXXX, the growth improvement revenue, an of reflects over the additional operating SG&A spending, government the XX%, investment The additional of year. We of normalized launch health rest to improvement The and expect the increase the first due expect of the to management. absence to basis was relative XXXX. year-over-year segment the

a to the with sheet, the quarter XX% range. targeted balance with we consistent ratio of our Turning debt-to-capital ended

stock a weighted During flow net and line billion per $XXX $XXX.XX totaling in or the of X.X approximately expectations. with was repurchased shares of price times cash share, million. Operating we income at quarter, X.X million average common $X.X

a quarter XXXX. an the from in CMS since of very is declined first this payment metric strong we extra received result, While the

are we payable to by and days guidance adjusted Claims pleased were our at share increasing increased we full-year in Days XXXX X.X our $XX.XX. quarter per Overall, expected, first to sequentially As earnings days. XX.X least with performance

we guidance Our Further, slightly updated earnings revenue XXXX results earnings reflects we first full of of expect better than percentage quarter now growth. our year and the the half mid first that, in anticipated with the solid And previously results. the Q&A. year slightly to for I'll turn the over we XX% higher reported to approach operator fourth quarter than Operator? call expected range, when the

gentlemen, now Ladies question with question-and-answer Please the ahead. first the we Steven begin Barclays. Valiquette of will is And go and line the session. from Instructions] [Operator

maybe on to is Medicaid bit thanks. in far that be release had trend. going these the cost give around you're elevated more little about the for just press on what as Good that And of and the initiatives that as you color which Medicaid of results. Congrats you doing states up guess question want to the trends just some everybody. some Great, us, still improve I little bought thought in morning, cost states, I a talk certain maybe to

Yes, is thanks, Difficulty] Steve. conversations their This the some state of is having with [Technical partners. she

year-over-year to the state performing for we’re states with us And states and you'd at of very sound and provide future. the is you as with the daily within in slightly with cost select retiree And membership. separately of or basis partners. because actuarially dilutive, not are on That we're business like do elevated you rates targeted if with government the receive about medical the the conversations, the division working terms in structure. talk acuity accurately we maybe business our spike is which margins. the obviously to or the little just well slightly Medicaid business ensure growth we that. government release ranges the target that look have to government few in then a we other management comfortable business margin The has total, very the operating out script. having well where even we're with In a as clarity press reflect at had declined And Group bit positioned we noted, that some Felicia, you're initiatives the has don't of

Thank you, John and thank you, Steve.

our As at business variability And as take you ours, portfolio a across of Medicaid large always as John when portfolio state. a businesses. will you our a said, diverse performance see is and look

As of the team a we going the by every rates serving. not to you that we're works partners our to state day, that said, into that are but details, in profile represent really basis, on population specifically actuarially our we are securing get the acuity sound state make sure state

members give high managing very members, are trends. that We solid The have of business, who cost Aspire complex CareMore us particularly our capabilities in ways foundational place in capabilities of complex. managing strong and our addition around members have medically are and

good medical around and to with our feel management capabilities collaboratively good about certainly about we actuarially soundly. ability we state partners very our our very work So, feel securing

Well, for up. thank of I'll Steve, you. just question, Thanks sort the wrap

about be think overall area Group to perspective. very both feel I us somewhat our business platform expected we've contract. strong targeted good to Medicare portfolio. and in And the growth. an for we’re the the John that of beginning dilutive for a as the that And as is We growth said, and certainly, see Medicare a business fully significant see Medicaid government

Thank Next you. question please.

Now of with go JPMorgan. Gary ahead. to the Taylor line Please

Hi, can you hear me.

Yes.

those look we in was check the margin I it sure ago business the to which commercial one I align PYD that we're that. we adjustments on be in retroactive places year I I in year where from that between is pretty of we ballpark the at on exclude to first thanks. prior development evenly performance, if related three And wanted when adjustments lower, comes without just and with retroactive when XXXX, just was look government, the that Hi, directionally after the government roughly explain the wanted year of at K government would like deterioration presume government of thinking? the then the quarters looks quarter split a track on prior to the sure out to make when and overall the wanted would the make development

thanks for questions. Gary, Hi, the

out. over associated retiree as issue use again clearly the terms terms same hate of is an over In We is The I of Minnesota. the launch dilution the with Group did answers issue. year-over-year out-of-period profitability, to and an and a the you in pointed just new state

Blue some Our Shield a and partnership Blue metrics our impacting Minnesota with basis. Medicaid that's of Cross on obviously year-over-year

that. associated without business prior whole development, but of with of I the the XX/XX/XXXX specificity directionally, right the individual and I associated yes, guess make of that had only And there's the with So, comment a you're individual that think ballpark. things, had would is members the the X.X year list reserves is, disclosing in business million I we line

smaller then of and had have run based roll a the current it top in we here that ago so of only and the that item forward so run be and today of the members the out about period with in obviously base the associated commentary a individual out on year XX% in that is And made. footnote, number reconciling you will on a much

you. Thank

please. question Next

go Please ahead. with the Leerink. line Ana SVP to of Gupte Next

good Thanks, morning. Yes.

a if or the doing total So, pricing, self-insured represents from commercial you've get not how of much fully strategy either going fully growth. relative new wanted bundled, integrated stop asking market or I I for congrats and from others this care said I to insured been gain growth? was sense on the cost you about players other think to that share the that insured coming loss or of to a discount are and

in you question Ana. Thank pieces a for you. the There’s Thank of couple there.

Let been I'll strategies and on to in what's to then me of ask comment try business. address sort Pete commercial the our

good grow about Difficulty] the at [Technical the projections recognizing for quite did to made feel we for we and numbers. quarter business commercial thank our had this foremost, risk-based a full-year. our We full growth deliver frankly you and very First and our year commitment

I than it's a competitive it's think market. more combination, pricing, a anything,

have stayed disciplined our pricing. in very We

products. a single, our my less I infrastructure, invested to of sure and mentioned what call, So, sales driven than portfolio commercial comments brokers it's all discipline, execution. in XX our sales business full opening processes, just simplify are We've and operating of as operating around a our by sales in pricing under trying I tools, and make also also that really states

things So a overall, doing product. are yes, of couple we around

value-based heavily moving are to We reimbursements.

clinical reimbursement the a our programs of think value-based with I'll and about little because alignment grew saw quarter, our have also our maybe terms products, combined. very then in a I that's then of comment you which the those And bundling. is in been it's structure positive network ask Pete not also broadly revenue base, to a our risk just strategy specific our

do Pete, want you to some? add So,

to as where those Gail it's thank I'd we're our all Yes, it's excellence. centers to our through the see meeting better engaging options differentiated bringing about providing several Ana. say a that with way over marketplace. only, providers market quarters creating about talked competitive do to they our structure thanks not We've marketplace, the in we We a continues noted, customers and our marketplace. We're And rational yes, much are. segment products competitive it in last of – but our be distributors we're necessarily and greater playing services choice and things about Gail and

growth. very to respect our with pleased overall, So, we're

proof in we've continues our look and our that forward as we about As talked X, to of that that importantly you stop referenced Gail going relates the would things our product saw are members quarters see quarter-over-quarter. We're growth. ASO strong about insured of profile. and major value fully expansion business, quarter a other talked this, couple in to that focused seven into as we our consecutive a the our the group There improve, month-over-month XXX,XXX it our are products, point, We said, sequentially fully things point. onset through selling to business as on over more create that in therein. of margin accounts. selling had very IngenioRx But a our we ASO Gail that many loss sequential things we and specialty number the insured growth, growing proof specialty and margin play business. contained Obviously, and And strong

bundle clinical We on continue and are X our [a to X path this from packages X to week]. X a effectively we to to to

third]. about as So, I overall, we'll team will you quarter, second continue see good good momentum that, up feel in Ana. lighten probably We the the the momentum about in the execution. things [the we will feel very Thanks of but very think and continue growth the know,

for Great, you thank very the much question.

question Next please.

Next Citi. Ralph to ahead. with Please of Giacobbe the line go

existing and take churn down, to to the give of what's the dived base of what's assumed Thanks, are keep will a just lives. still if see guidance to you. morning. now specifically is also maybe us a sense you on maybe you Iowa as in good of that just the that Wanted case membership you I'm your lives your I'm trying share guidance? initially embedded and or some Thank the U&H up sense sort noted just to to go expected that incremental [XXXX] and you assuming book how and in maybe could initially. get to and essentially

little the have clarity provided of this the Felicia level we've the yet about terms provide of And a we that a about is assumes and what of with I'll about and ask the right retain what's bit state we more a members a Ralph. completely percent], talk guidance guidance, the within for little But that conversations that then least Thanks, is guidance just state a bit not and membership. of finalized. Sure. to fact than still on that lot the included would in little purposes our our [XX a of at third now

rates Our beginning July assumes X, guidance we actuarially that will XXXX. also justified get

it dynamics about so, on Felicia turn And over will talk bit going little to I to of what's that. based the on

and Yes, you, good thank Ralph. morning

wouldn't to as those we're program for to that partner will of on right as out focus with [Technical And that of with John right working specifics to respect change, closely to you those of are actuarially be guidance. certainly our any will in the sustainable have If going Difficulty]. will is and goal sure happens comment the and imagine, state discussions, include respect now well Certainly, our very indicated with range beneficiaries Iowa happens our there on including us say membership conversations what the respect conversations can that we appropriate sound rates. it a serve that and a improving what and Iowa update the allocation, to Medicaid as extent allow I conversations. things rates making allow to we in now, continue

you. Thank

very Alright, thank you much.

question. Next

of line ahead. James the Jaffray. go Next Sarah Piper Please with

getting $XX you. a non-Blue? technology billion context there for the you're And the response, for from Anthem? us Can us some your progress or build out IngenioRx on by Thanks. in you market sizing discussions difference can Thank versus PBM if having Blue for you're update the selling is on and and externally give DBG addressable you

Sure. give targets. are the just for Thank you you that the you questions XXXX itemized numbers and

about these and XXXX. that in the margin IngenioRx we honestly, being of to XX% lot until – a in take business that higher closely of ramp to very consolidated we achieve in expect to is So clearly, significant on several with $XX range. single-digit about from it many came in basis, revenue don’t Difficulty] get disclosed XX% to point. expect a X% had in which [Technical combination the the But working we're XXXX many, group both Quite to then We to the billion company total business folks. where diversified see will that bit being and process, of diversified years IngenioRx of a than XX% sales the a margins specifically

run-rate getting of activity. and We full on that a completed points here proof delivering to the we sales have the promised then XXXX transition are and focused we the portfolio. terms able out building of in provide conversations Shield terms services. being plans our had actually those positive are Blue of to several have in and lot We've with group, customers several in be associated who the continue on to Cross And other with the the value business then in We Blue very diversified We today. opportunistic want relationships. wholly XXXX continue expand and Blues then

So, that good that XXXX will about we provided, years but few very up feel ramp the a expectations take have it point. been to to

additional a just to Sarah, And, few very think comments response. I John's thorough

as migration early going successful our traction. John is in of book we business. think seeing into XXXX our some primary But focus existing the I are XXXX of said,

comments, had did very second in strong mentioned my I our conference and we attendance. have As client

and we're Our X% North doing integrated the other we partnerships through focused pull the with that health forming. an guarantees case across continue new pharmacy, our plus we're to Blues Carolina we're in on been certainly where opportunity I to certainly are we looking that think to have the do that in resonating, that's are partnerships and

of selling that see and XXXX cost it's care. intense on season, of much. as package it focus the you a in see integrated very we of IngenioRx Thank but overall broad-based well, as the total So, way DBG our in fairly again, very real opportunity products But to look and and a at beginning XXXX, we're and I XXXX into strategy. think a obviously migration you'll more

please. Next question

Please Next line from go Josh Nephron the of from ahead. Research. Raskin

strategy, you does in three Hi, look sort like, a other the with Gail more terms and years thanks, now, other products longer I JVs of you the Blue from connections on what to pleased morning. five good term, question success about of as would Anthem's and what Blues? guess be just think to

partnership of mean, unique Thank question has of outlined a I terms them of of each in you Blue to much Louisiana our Josh. into that at – success to and each is obviously our that's to market, our and continue We're we we – the with circumstances, IngenioRx I partnerships question another for our expanding a venture It's of is great us consider opportunity. to Day continue able do the eligible Investor package unique to solutions Medicaid. set pleased partners I think think is great just for announced in to think really dual the be we

very an Blue as opportunity we several longstanding So, I our our is expanding to CareMore as, through think partners to we're DBG the Blues. has Aspire, have partner as going of been as, be opportunistic with a and aim

I Difficulty] versus and look this our of to think series as package, [Technical particularly with we single well them, CareMore are arrangements off space, mature in we really opportunity at we to a our one-offs an going risk organization. as in

own of think of that's business. our Once So, offer. I complete think opportunity IngenioRx, our we the maturity conversion I that's another for to us

partners much Blues for we're strong you with very way, again, fellow plans. not very competitors question. different a integrated the our because, very platform think a in I Thank

please. Next one

of go Rhyee Next ahead. the Please line Charles with Cowen.

next for something of recall, in top one-time we is not anything build pointed as improvement and forward, year, the but guess full-year growth Day, there for this taking top XX% should we guidance related number about at well? of revised year, had Thanks. for going thanks on EPS revised guidance the factoring maybe SG&A you the this we XX% on year, of there the Ingenio rate the to just as about going of obviously should forward in when or Yes, this question. about think a about next is this – how cost and run as ramp also about good our into model think expectations nature we about that sort we year to or think raised going in guys is think pull our think to we think and I XXXX, that shouldn't here I for we John, out the if Analyst

And terms best across very, the because the lines the grew top metrics started strong we've Charles. to the strong on, of some you, change growth. did of bullish. we very seen some Thank but bullish really of our the guidance of the have revenue about we all membership growth we're raise guidance risk and business, in We in how very membership Most and we at didn't within very of the company, growth. line very, guidance quite year

So, perspective. that I from say, would

to very, XXXX good the here is ratio, that as migrate all and this onto that January While and raise CVS then SG&A out yet through in with time. in IngenioRx There point we implementation providing very platform. latter we rollout are X, at go members it Investor of that impacts year in guidance the SG&A laid back And up first strategy of nothing does our percentages that XXXX associated the is Day do and our the half long-term the at not quarter. new growth now ratio expect of this this we from finalize We the accelerated guidance.

ratios because higher SG&A the the the to going quarter. we’re maintain, last that little So, first part in expect SG&A the we here and is guidance be a our ratio provided, to we than it of year

Thank you.

please. question Next

ahead. Credit A.J. The with Suisse. Please Rice line go of

on at the Medicaid around on I on a stock interest ask has on perhaps up just have and also come Hi, PBM you'd the any M&A opportunities picking benefit. be everybody. an the you capability the capital opportunities Medicare there I there Advantage looked whether lot whether but buyback you should side so I'd is sort about thought your but and in X the side traditionally Washington potential be hand in Ingenio, backdrop, there's on comment I or one on in landscape side and opportunity in know X know in care perhaps? flip in, last shifting you maybe obviously pharmacy plate of with of there – deployment, areas, months, the Would capabilities, seeing management a you've got interested those and would and bringing is know

appropriately Yes, A.J. going the you answer, deployment. balanced At question, thanks way so a on term free I about very think capital for share think flow Investor our to maintain XX% to in the for buyback on over to dividends. the expect phrase Day, just and as to based XX% that cash or M&A that we of we're say the approach our laid either XX% and out I long business reinvesting I utilize

could actually conditions XX% and there. that out opportunities time, are in However, that based point and market shifted at current any XX% on

M&A solidify -- we a we're the time, we we and provide to either to associated but In footprint focused various the that be the want things, market footprint accordingly. have group this don't MA do value by the our tuck-ins we're that on or off and will specifically in to terms at diversified business our of absolutely make market us long-term with react capabilities, not opportunities provides but very best opportunistic, other it in point sure taking conditions want we table shareholder anything enhancing

Thank you. A.J.

Next question please.

go Justin Research. line Please ahead. Lake with Next of Wolfe

seasonality. is your question My earnings on morning. good Thanks,

First half be in EPS off, appreciate XX% my using about the the implies update which of first about John, XQ X% by is up would math $X.XX, X%, year-over-year.

the perspective maybe it's in PBM lay and of curious actually puts any just from benefit perhaps us touch XQ the if whether earnings in talked QX, or a that PBM terms in due specifically, start-up will an Thanks. you've whether on earnings to can costs? out you some of can about the So power of QX you consider to takes drag and

I is But And your your lot always as you, always, as other XQ in Justin. capabilities. Great Thank seasonality things the the terms things impacting impressed question. of much modeling XQ, the seasonality impacting as Yes. very of quarters. a with am there of

the that way] vast but of vast, and half implementation in IngenioRx, the XXXX So, the of second the we're you transition in the going year is on specifically to membership IngenioRx X, majority called start all out May but of X, that still a XXXX that’s include to full-year XXXX, on gives which us slated not migrate business, of business individual ACA Medicare just our even benefit zero does January our XXXX. that [half in

So, the the at issues increase ago. virtually to associated Day, And year-over-year we described with $X.XX the all was in period is the third of fourth had guidance, entirety the of out months XX in in benefit $X.XX the IngenioRx from that and first the Investor Medicaid here of then quarter, quarter. our

that very quarter is well. in of very we're to slight is Ingenio could that it done But drag the the quarter will investment normalized, say very, could I from terms XX%, be, is a thing transition only the that is credible. yes, impacting. quarters that certainly going second So, it's other think make ensuring be given the at your The math the I second are other

please. question Next

Capital line the Next ahead. of with Please BMO go Borsch Markets. Matt

back impact was about? some the per I reveal have the you Yes, so in can hoping your you terms and you of but coming on of you that that se, talk could about you rates forth you're thinking final fee as in factors XXXX, now competition, just of health touch insurer the can't Advantage understanding consider the Medicare the the strategy product

know Thanks for think I'll the question, provide Matt, to said in process we're and I still you you Felicia the your now. commentary, as bid question, some ask in more

we about go on reasons little too XXXX. into from we're Felicia you will of but maybe color So, bit will detail, not a how competitive thinking give much

they as a This an we growth think believe bid you the XXXX. and for when we year, always flexibility us past expanding provided in to think as the for had that Difficulty] has help approach those we [Technical thank questions business in and of perspective terms balanced about about we from CMS we we Yes, know take process. our you Obviously, appreciate overall that XXXX. we benefits as drive

growth accelerate pleased we've into So, move forward our where when obviously look to year to at XXXX. this we look seen that a we continuing as are, take the we we've been the average growth industry with above and

you. Thank

Next question please.

Please Fargo Next go Peter Costa Securities. ahead. with Wells

MDL wanted Cross how plans the and the ongoing Blue Association. to and ask other with I Blue the about impacted that’s Shield Thanks. the Blue by Shield Blue you litigation are you Cross, JVs doing against

at the like look of it litigation couple that guys MDL with Cigna thought seems not actually a If have happened. them that you settle the you to might litigation, years seems and

your you gets and way? JVs can that help in that actually it process to some does is get done on if it So, resolved more hurt thought or what's

like are these opportunity really business, conditions comment doing market they're and to we're ongoing litigation. us as unique joint very very as mean the would all We us our just for the strong frankly on and part that those we other terms But in platform take question. all by platform. Difficulty] have venture and we Peter. Thanks won't really before for – expand of quite ventures much the I partners [Technical born Medicaid that the we really really joint marketplace state opportunity in shared a are for driven and ventures. strong joint in as that of to we've that see that

opportunity partnerships and main I for for each and that it's growth huge of them outlook. very our different. health. part would had of strategy been really, because it's Blue with tell of think our many also we So, our work we And more I very expertise venture that's has that of that think programs. But we've to our a not have partners of in depth wanted again, in that and the many ACO health And included you these clear example, in government unique think very these, collaboratively is do have behavioral we the Colorado we joint

market strengths as across footprint, Thank the broader some think bring opportunity to that than with well. and have we opportunities and So, just, we in leveraging they're see a very we do but we'll Blue again, partner pharmacy the significant again you. broad

question Next please.

Stanley. Next Zachary ahead. Morgan Please with go Sopcak

the react sale just fee-based for commercial the for is book. morning, risk I do comments take mandated the that, you forward government will going on formularies action? expect point-of-sale tighten you rebates you. think I to to players they book for Thank the thanks appreciate if would by about risk through your talked become Gail, legislation, flexibility, the other how or good that question. in wanted Hi, then the entire opening comments, for rebates clarify In book? you the to of point And X/X/XXXX.

the question. for Thanks

foremost, generation rebates and important and in as building you first really PBM, at Day absolute discussion IngenioRx to competitive. unique building on. not etcetera a pricing Investor might in around PBM I pharmacy what's We this in we're rates that, as lowest cost getting in because what were think position, is I new we're very farm really shared start recall and is our a the PBM

with shared consumers on fully the conversion, sense aligned our that our rebates, match what self-funded business the ability stem Difficulty] in from to we've Difficulty] so, point numbers our build the across we offer of we to our our through get is we marketplace that the point-of-sale And and business to want we're to extremely be certainly really commercial [Technical From for for the we view competitive you and there think offer want. once want, prepared our service of you that. rates but customers makes book in what to [Technical again again customers

– were tool Your negotiation. away rebates in terms go rebates specific about affected if question to of are

in think very But So, to this. that to I be that's again, want important remember understanding transparent. we

the our at of expansion etcetera. around are arrangement, will other the with you other are and traction to whole work integrated details through need create the believe in think discounting product example as there strategy, gaining looking that. side also the understand market opportunities of in fees, On said our We program, about rebates – guarantee admin ways has to and it for some fees value this, and create health is which that there HHS certainly alternative government an we

lot I competition. rebates, drugs, of all a the almost doesn't rebatable the would drugs and So, spent again of than it's know rely XX% it are on most on and is have all less drugs all I say the those of that focus of drugs,

is a a model. strategy the than retool So, an our to trying place view feel very on about different very we that existing we launch in very that good and think for able it's PBM question. a Thanks that, to prudent being starts

please. Next

Bank Please ahead. with Fischbeck go of America. Kevin Next

thanks. Okay,

the didn't any guidance change of you coming in as the guidance. into go little a behind you drivers, one I revenue little better as guess to more, of mentioned, want components mentioned really bit a but bit the Just the

ranges through a more just as membership wondering I those likely on at guess where higher-end feel ranges maybe bit actually more flow that specialty maybe MLR, you're little within you a G&A, So, looking those color where in at. the at

Kevin. thanks, question. Great Yes,

administrative have in guidance of the help the fee very, which the the to of outpaced One are is the top line. the and and we very quarter nicely the revenue greater value-added pleased as line that results both with of quite for part bottom really specialty helped to specific as areas are our the membership upselling services, and core and contribute those and really medical just contribute wasn't the membership well of

changing As per earnings said, did without we raise the this share quarter by $X.XX metrics. our core

So, we’re are range comfortable balance the guidance. and guidance of still revised with within our our

of specialty all not we in lines Our revenue and on business, growth membership and has guidance well. fee those been did specific administrative exceptionally but provide did

thank So, you.

Next question please.

Jefferies. Now go Please to with Windley ahead. Dave

taking your Justin's mid-single-digit at he pointed – if year-over-year thanks XPBM follow-up here would kind Hi, as be implied on my wanted back of growth compared XQ I to out, mid-teens. guidance question. question come is for to look growth in the I

in money as there's seasonal is the that not you're differences just wanted what because that But So, SG&A where quarter I cadence little bit appear maybe, something some does and a my guess it's presume year-over-year that spending in correct better a be. there wrong. to first I it spending understand lot I well. assumption that IngenioRx on I'm MLR, of the might me

spending of of dilution to half that throughout to in that in terms Cross the benefits a get going lot Blue so going Group we have majority second second as are the a the from first have second that. target going the but quarter for lot of the of on and it in those minimal with of the It's with really to Blue quarter, of into All consideration are obviously benefit things the obviously we we’re I IngenioRx like, as very our to us offsetting a XXXX, the retiree profitable margins things quarter, mean year-over-year well on comparability. money in Dave, bit in then business. Minnesota, XXXX of a of instance, take being more extends even going entirety and know, good IngenioRx later You Shield back XXXX. year be loaded we year, the of the

positive actually, negative are associated with that a it's reviews. lot quarter-over-quarter it's impact things of short-term So, the a having

Thank you.

Next question please.

ahead. Sachs. Next Please Tanal with of Goldman Steve go the line

there and get Good morning, more to little wanted a the guys. more in bit just dig we Thanks for benefits question. ratio, if just some can. I taking the color on

retroactive So, up it's the year-on-year, I points about XXX adjustments $X.XX revenue in I bips to was and Medicaid, guess the think year. to if last then guided year for basis XX

I think that's about XX bips.

think balance there's that in basis XX year-on-year, of but the release clearly about I expected. noted uptick a So, you sort points down you was and if of than was PYD development better

just maybe sort the is on this of point, any as up of pursuant it as discussion quarter kind following kind comments to So seasonality well on of of itself, sort the shared fair thought to the forthcoming process of sort maybe or are savings say any PBM with that upfront of of some sort customers the of some value that. the of on

years year this much thanks. That's Just tighter should thinking in it, range QX year about MLR full the versus now a the obviously than seasonality of past?

take points. to it Sure. basis impact quarter savings that to plus will but loss Thanks, first all, the I of I'd the ratio just in say, medical reaffirm and XX does I'll of structure guidance the minus not just table, say, XX.X% off whatever benefits the And MLR Steve. or at our XXXX like IngenioRx first,

temporary MLR which ago that The Group means it's business, you it's as of higher skewed big on a that the past also the months. basically out-of-period obviously it's business driver. yeah, business driver, of a a of Retiree business, little yes, the you with them, XX I is held As And to mentioned, over growth significant more we've said, constant, MLR Medicaid had is we again especially clearly which bit we basis. the have but in X% versus And the we've mix is mentioned change. increasing lines year the a dilutive, adjustments our the have now a

the or minus comfortable are trends consistent in We earnings. very XX cost our plus of feel So, our at guidance with X%, our points. quality and basis

you. Thank

Next question.

with Next Please Stephens. ahead. Scott go Fidel

John, you right, sure because just how that about guess, you're in can want sold the XQ cadence us billion. $X.X new in walk be cost the of of for with of then Hi, billion I rollout this the question us, to should guiding thanks. for of to that? of terms a and maybe just it's XQ a modeling all of $X.X IngenioRx we through to make line and just got thinking I I've terms on products just relative ask that XQ, sort to sort of

making expense going with mentioned independent The with PBM from clients perspective, recognize benefit. And margin we all that of revenue, Sure. with relate item. that our the to and is would ASO obviously would with cost the of you our be cost we when services clients, cost accounting new services to of or and those then associated be fulfillment that the in a there's get that provide products as line be products the the would going to pharmacy third-party is that. profit associated value-added their products, would providing associated reimbursement, And is associated those Ingenio we an

to to aspect revenue revenue, the say provided Ingenio, that the be up cost. and cost quarter I guidance the As said, of back third which is $X.XX in fourth the Ingenio, a the expense associated the that be that which of associated will we with in $X.X should and be number. relatively benefit $X.X reconcile small would of again billion the improvement in obviously second in with product, $X.XX the bit quarter quarter the or would billion then little ramp more to

you. Thank

please. question Next

Markets. Capital RBC with Morgan Please go Frank to Now ahead.

remarks, Good were determinants mentioned, In I when health. morning, think you prepared your social of Gail. you discussing

personal you'd a curious expand to you. any about it's your for really all yet that that for extent that today? control and How is or care the helping an think plans opportunity have Thank of as benefit to in, just cost? you benefit services plans, states added some I'm overall I you mentioned many that identified

Frank. you the thank very much for question. Well,

As of added Advantage going Difficulty] probably in that to offered really that states can comments, opportunity this, have bundle original a season. those, Medicare level back has to with I counter early be over year's still that. and benefit Medicare it's comprehensive the cost have selected outcomes our while items us also that also that the ultimately is and us pleased also our in and the whole and we've Advantage addition into help for improve expanded our pleased – we really CMS will we offering which that beneficiaries most based the that our strategy allow [Technical We're we we're social members our going they to noted very help reason's really, our determines of again care do Star my [Technical the next selling that's the opening manage What know about and some overall to population Medicaid these across benefits care for total Difficulty] to ratings. person manage

outcomes the just that care. quality better. beyond shared here also Blue ability a demonstration the get Indiana social of did Our great that's issues you I Triangle and example program the with to physical benefits, things just we embedding in that the are but people's health around market impact

really benefits taken are advantage specific of Difficulty]. So, [Technical much on you did depends those broadly we that include again, bundle for which the Thank very question. and

Next question please.

Bernstein. last to from ahead. question Sanford go Now with Wilkes Lance the Please

Yes, or question And quick morning. just cleanup a two.

give just certain far and seeing state as bit see obviously very First us implementation to versus on dates? as wins, you of aspect cost some trend, a in that you've Medicaid Medicaid, medical coming if know expected in some just talk just one the you had wins, you about pressure the will little expansion more expansions, year a color little going what forward. related opportunities, and could always other already the you early about Thanks. where was maybe kind Can be you’re in year

on Felicia your John address some first ask share on to then perspective I’ll medical to costs, question and Medicaid.

thanks, Lance. Yes, Sure. morning. good

previous as of stated question. cost In I I terms in think trend medical a

benefit our I minus to provide opportunity are this the is year in will cost or costs of that in the year. take X% or does of expectations. plus a lower half basis basis trend not So, structure. our second the quite the reaffirming nicely of obviously benefits implementation the X% with clarify include pharmacy Yes, we points, minus associated that's later guidance medical XX plus IngenioRx really it any drug XX with that aligning cost points. our and a aspect will

XXXX partial However, that guidance have understand think a going it clarity, to year IngenioRx year what in is model because in result for are that cost really provide – to isn't business, then will order better make a we trend of IngenioRx provide will our we easier implementation, and guide better to we some information in. the provide in XXXX and a XXXX to stream just it's without we we baked our clients when and all meaningful and provide full cost

So, transparent terms in far trends it expectations. will areas trend the more of after consistent the other but very of actually be, first that doing I and quarter, believe is cost meaningful we're it, Medical way with issues or concern,

Felicia?

Lance you, Thank for Yes. question. the

Medicaid As to pipeline you be continues know, the robust. very

us. that over couple a Washington the serve which our well us in next positive with having months, as pleased was DC, that state certainly bids is We but ability the beneficiaries for us, win most have Louisiana, very, for three That rebid be are in but very as of will to in Minnesota. recently continue Medicaid to before we're submitted

and over forward with partners to state go Medicaid continuing strong we a wins. to to we bid to XX% out serve is which our look So, look When track forward record, to working our beneficiaries. continuing of

Great, much. thanks very

management to conference company now the I'd comments. back closing you. like Thank for to turn

today. you Thank We us your for appreciate much team. for questions very joining all our

we [Technical of pipeline a started ahead in year opportunity you see, As position us. off Difficulty] growing this of can

Our sustainable on and our our to behalf ability first growth members real confirms performance our of deliver quarter shareholders. in confidence

with committed who and values to XX,XXX again to Our success of look and your our are made dedication soon. Thank and day. associates mission, you for each speaking Anthem’s living interest is every you possible forward by I vision the

this X. Ladies after replay May will conference XX:XX and available today through gentlemen, made AM be for

conclude participants replay access at – are conference any gentleman XXXXXX. XXX-XXX-XXXX, dialing again, and Ladies X-XXX-XXX-XXXX You X-XXX-XXX-XXXX does numbers entering That may code excuse access dial XXX-XXX-XXXX. by time may Once International and and me. today. the your the XXXXXX. for

now disconnect. may You