Elevance Health (ELV) 28 Oct 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Anthem’s Third Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question and answer session where participants are encouraged to present a single question. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the conference over to the company's management. ahead. go Please

and welcome Business This and Relations. third XXXX of our Business Boudreaux, quarter with Pete Government our Good President our and Haytaian, Chris to Felicia Rigg, call. of President Gail are is this & Investor John Vice earnings Gallina, us CFO; Specialty morning Commercial morning Anthem's CEO; Division; President Division. And President of Norwood,

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

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

quarter Today, joining will Good earnings the of morning, XXXX Anthem’s discuss pandemic. the call. of expectations and for third against and our quarter for us the backdrop for thank you third remainder results year we the ongoing COVID-XX

XXXX reported adjusted $X.XX, quarter prior headwinds we and quarter. project tailwinds share third of of earnings heading of and also This over will down the preliminary XXXX. morning, a the per We Anthem view provide per year earnings into XX% $X.XX GAAP share

difference crisis, more our imbalances members. commitment our the treatment disparity, health to and of customers impacts Armed the partnership as Anthem make and to address the has serve of opportunities improving with proud and of quickly Beginning crisis, health economic a look health onset needs more well and Today, lives the our Anthem the our serve. and affordable work. humanity, for evolving and continued days as the reflects respond been COVID-XX ongoing with food address quarter to the legacy a purpose to environment, the continued our experience. I’ve challenges. in in is return customers and the longstanding local struggling the insights, a new health around innovation to are of deliver heart with continued those of and and effective the utilization ways we The in results of costs, unrest focus where our healthcare traditional members simpler, has we Since lives leverage to issues financial we the Our way social live improve partner. communities a communities on pivoted to and as of Anthem more to of earlier ongoing incredibly and security trusted positive and of

Our by seeks focus racial disparities on to our $XX million commitment inequity. community health fueled health and eliminate

with country together and on businesses. Together America, to communities across are we nation. health hunger the fight Feeding leaders directly health whole connecting strong problems. of been the security care, We is Our this not addressing the know by social linked passion drivers driven and person the in of work to whole true, Throughout of well members, but sanitizers hand we individuals, health face that families, cleaning risk food transportation, and America, and is intensified pandemic key have issue Food high improve and they around for supplies. and the to to partner join only as masks, necessities as as our pandemic, our has security track is of health. for screening new food our such housing, record is a basic factors a have the with calling our access ensuring

residents food, local country. partners job network help our with meals specific by pandemic, racial COVID-XX is this health care social zip families Bertha, outreach. to communities. at area mobile laid every an accelerated. food in social with more These work training need and reduced of Anthem to light leading only in has and services free cost connect society committed assistance efforts the we’ve Indianapolis, a across and code has Aunt Supporting partnered ongoing just In and in programs a our also in provide in their million with through individuals Anthem. Here transportation, program banks include to for disparities XX more inequities priority create the there and the

the community-based in We sector named In to than drive we space. culture This in Most are INDY XXX take Pledge. stand response, this shape The everyone. more and launched challenging pledge environment our continue rising of the a shots to for to meaningful community ranking neighborhoods. issues number has spread have our to City our Campaign, commitment future partnering List to know joint Annual pop-up we the address our lending across with equity digital in year a our one continuing and particularly the and our is more industry to For healthcare to underserved year’s and organizations up be COVID-XX our goal community just innovative associates, Flu drive-thru and in our for flu clinics for providing voice lead our the XXX flu only in reinforce Racial everyone. and health the Equity racial business And local civic accelerated over Just experiences be towards this Anthem spotlights markets inclusive in free our to with actions efforts of communities and We the going Of were an Forbes pleased combination Anthem of Indianapolis, the with row. season also the second is Companies recently strong Fall with of COVID-XX. commitment, for

personalized this the need access to care get and need shared Since Psych the business pre-COVID. triage. engagement, providing systems a X symptom-based help of members Telehealth trend all At the they AIs by more quarter social and and collaboration families consolidating helping Our telehealth our processes low-single-digit our Sydney the in our vision simplify their by Health reimagining for modernizing us and where delivering Application to a the pandemic-related the to The for deliver loss, to utilization cope real-time services. information, than digital telehealth and behavioral those other services national they on we has health with consumers Day when and market of to automating accelerate embedding last usage continuing, better is and see across and to digital challenges. the unique among comprises mental particularly a health our health we mental AI now speed as of Investor experience. platforms, compared and crisis, range is XX% is Sydney has is enhance been brought health XX% resources operations, community. several downloads our enterprise journey to health onset hub experience health that serve. behavioral customer enables enterprise for isolation, to job and ultimately an our and million leaders our improve year, streamline charge services Hub stress ensure it. resource This designed strong we

and Our operate working. of ways the challenge the several last of months experience the saw our pandemic pivot in virtually quickly to

the lives of real footprint, our the economic we experience, outperforming overall the selectable and practices But environment. sequentially, robust prevailing safely by to result challenging reimagining are more driven our offices estate workplace our able a growth insights economic despite the deterioration collaboration the to of organic from expectations. more XXX,XXX With Membership by were This serve spaces in and membership increase strong trends business, XX.X in as commercial work to our million quarter Medicare. far, do partially environment. offset in The an of thus are this membership significant is as in Medicaid totaled so. market share reduced membership internal Medical continued gains real. members, and when evolving a was trends our risk attrition

membership in declined fee-based beat Our sequentially, commercial businesses. risk X.X% our both expectations which and

Group and outpaced XX consecutive virtual despite last the months. risk by sales lapses new the supported Large the Group have sales for challenging of lapses net Large account the strategies the XX segment, exceeded New quarter environment. in In tools second new

keeping discipline and pricing to remain our we long-term go on strategy eye customer in an market Importantly, retention.

While we next pay-off. the they in over focus group some effectiveness, affordability, from changes meet expect of quarters, sales customers to continues a are offering product options to several portfolio our on see headwinds and where to

increase different by looks most, whole than year-to-date in results momentum confidence focus our growth, While powered new through selling health. person sales on sustained our the our season XXXX

our period primarily on Medicaid nearly to significantly nearly XXX,XXX lives in the re-verification. that impacted rate grew financial and in performance totaled The retroactive, of membership year-to-date prior nearly quarter Medicaid XX% the is adjustments, pause by the due was Our by business up $XXX million. quarter

second results third the persists expect the reflects than shared, quarter were in previously broad which of while we by through a the As year in costs, the we impacted healthcare based normal experience utilization. considerable deferral impacts more of quarter increase the COVID-related utilization, our the balance of offsetting deferred

earning levels work found X% that to range. X% achieve in margins to return while on continue with state actuarially a We the and partners are capital reimbursement our to reasonable

scores growth we Turning of in than average expect The our the XX% and released Medicare more XXXX star the business, is disappointing. are for payment year however year outperforming of year-to-date growth to market recently XXXX. mid-double-digit another

Our pharmacy of remain scores underperformance. the driver largest our single

January reminder, our the to improve limited to members our scores Medicare our on transitioned X, pharmacy Advantage IngenioRx period. in ability As latest measurement which a XXXX,

our star next year. We improvement ratings expected over are significant with on focused intensely the

their experience. Care new sales We strong that proactive prior a channels. delivering multi-channel enhancing we to platforms percentage members’ one overall we to focus an enrollment is this help understand onboarding Medicare year, just have the of our our onboarding the and with enhance Guide experience are Digital pandemic start of our our even area period process been of is expect gain The annual benefits long are digital to demonstrating significant seeing outreach and member to and approach results. a them the through way development

as above include Advantage. XXXX for animal as industry-leading supplemental benefits, Medicare which care, offering, as health positioning service of well reflects and benefits us such popular transportation, growth address the over-the-counter vision delivery food Our year and benefits, offering drivers market another social dental of to our

for positive of the members our XX% quarter that, into call nearly XXXX. of With see project and will continue. John? and headwinds third difference I detailed more we our to heading our compassionate commitment tailwinds to the over we to to turn of performance our making expect for fourth plans quarter, of in premium financial preliminary our a as $X review review stakeholders now the John XXXX will we Importantly, all continue a for

Thank Gail, you, good morning. and

per earnings of of adjusted As quarter $X.XX, a year-over-year. share decline we Gail mentioned earlier, reported third XX%

our otherwise overall significant quarterly charges, results few included GAAP earnings our While expectations. with adjusted our a consistent were relatively

impact due customers, Our providers. the normal seasonality support as continued actions results the our and reflect as trends to departure utilization, well COVID-XX of we members, voluntarily from took to care the communities,

expanded continue for waivers name policy to share a and cost provided to few. benefit no our has treatment for We telehealth changes to to cost, communities at adjust offer grants access XX/X support COVID-XX

the Our optimization XX% achieving journey impending to an of removes the to Gail well represent Anthem’s strategy resources further Blue high areas quarter earlier. of COVID-XX home to the Shield initiatives XXXX. organization’s while share our better of These and an operating footprint are year. with from to $X.X XX% work optimization quarter and billion Blue million, and adjusted third $XXX SG&A were gain third business to and Blue enterprise business decline After settlement understanding our related settlement, litigation prior efforts of growth optimize on quarter the as real aligned gained milestone able Litigation latest from the a our major the reallocation our associates we in charges transitioning declined majority the Blue of the our response and uncertain as of the commitment high The pandemic, results to estate Cross, are our ratio as $XXX X% delivering in items, impact aforementioned operating Shield exclude Cross expected charges our that referenced such impending by to million. or as digital. work we a in of AI capacity home. from a adjustment the Absent was in gain reassess

the has and business results adjustment, This elevated more XX.X our in million the that was Medical lives September, members growth reflect the throughout membership underlying have further time the as has COVID-XX-related Medicaid X.X continue retroactive mix double, the year-to-date. uncertainty, of utilization in end Anthem at million grow we evidence of have growth most which and deferred sector. across by enrollment we balanced again, during group shown cost Since our illustrated more at and and performance growth commercial Blue Our to grow stronger of Time strong resilient was than end of quarter, a is in excluding decline of membership healthcare XXXX. than membership lines in industry-leading and economic in to XXXX, partially grown rate first as ability periods Medicaid organic IngenioRx. the government as by employer Card. offset by comps businesses, well membership

versus in prior the Advantage. quarter, primarily of exhibit XX% in related quarter by And solid Medicare the risk-based growth loss increased HIF-adjusted to points And business was with an quarter by was the times revenue COVID-XX revenue course, of a in third third related insurer normal in XX is As increase baseline. this of to XXXX year actions Pharmacy a cost third growth to and specialty in revenue declines driven of Medicaid increase matter The a basis baseline. Operating $XX.X XX% partially of Non-COVID while launch commercial and basis, continue providers a double-digit the health our overall and on The enrollment to membership XX.X%, our coupled offset quarter rates. the or basis. was higher approximately commercial return primarily basis COVID-XX nearly fee. ten our of adjustments. Medicaid unemployment of in in largely when Medicaid levels customers the HIF-adjusted retroactive growth going Medicare was cost the including the increased The was the support of to XX% and year-over-year MOR businesses. risk-based rate fact, utilization is members, historical points, by driven On higher our IngenioRx addition decline care, members. approximately roughly the from in in XX to of increase returned and the quarter decrease premium driven year-over-year. our on by utilization we our above ratio billion, medical

As basis discussed COVID-XX in cost seasonality MOR our quarter continued throughout couple driven the the points non-COVID higher adjusted remainder year. continue of second than normal come on we the second recovery would to a half trends expect the hundred to suggest, utilization by call, mix in and

compared third Our increase quarter XX.X%, prior to was SG&A an the ratio quarter. of XXX basis points year

SG&A an reflecting well growth, full and the basis previously $X.X of companies. driven in expenses experienced excluding were partially primarily permitted of for was was two to due payments growth support However, deferred of items, insurers year, increase of with additional federal XX by year-over-year. spend the XX.X%, insurer adjustment outflow the quarter, health in payment return operating of increased as the decrease quarter of to We tax fee as primarily increase billion an associated the fee, health operating that of The The cash major offset the by was IRS. as decrease a by the $X.X billion timing the points.

For months cash the flow to $X.X billion, the nine of operating first or net was income. X.X year, times

been have are net to from flow the adjustment income net income multiple year-to-date items Excluding X.X the in quarter the of would cash impacts, major times.

evidence our In end in down the X.X of Turning of the versus unprecedented cost. the unclear claims XX of price much the which the pandemic in XX.X% same average of medical our ratio of total the with million. an payable the up quarter, solid growth XX.X our over shares reserve. year-over-year macro has $XXX repurchased quarter, at days Year-to-date, balance of target of range. the shares course of at the premium a XXXX from consistent in X claims a revenue to was the weighted or increasing have liability period, total we future and was sheet, billion for XX% been price days we’ve quarter, at debt-to-cap ways with purchased end X.X second $X.X cost with million economy. third XX% many on $XXX.XX and Days is at but average still million the days, $XXX.XX

organization’s to care proud serve adapt, we to our support our those XXXX However, relief our remain stakeholders. and of providing greater ability this we are to guidance $XX.XX. and we time, earnings adjusted for delivering At than of committed

environment operating have despite characterized an uncertainty. heard demonstrated you consistently morning, As we by in performance have this strong

While introduced COVID-XX diversified increased our firmly risk-based challenges, grow leveraging the remains at business Advantage in and market, of business is modestly seek we share commercial to gain certainly fee-based the as our intact profitability growth business. in long-term many share Medicare plan groups, growth the

invite Meeting our Importantly, discuss where greater Xrd, you Investor our will long-term March we on strategy Day XXXX we to in attend Virtual detail.

of use deferred background, see the or round could health With our the the business following that guidance, activity please These strategy earnings and X early and affirm raid outlook lower to and of investment related questions. detailed the call by the to to As spending a and unusual our fees, tale; repurchases, the will risk COVID the given X, progress result improve broader XX% Commercial to be normal as our fourth ongoing mind the Medicare more and challenges it our X And commercial environment. much insurer we of the relates long-term operating stage, view now share given XXXX in this half At on Advantage M&A to continued keep enrollment vaccine, would the and by return we in long-term year, accretion in-group scores, unknowns see of next to headwinds of initial for the XXXX a we support actions call. tailwinds, permanent our a efficacy XXXX if for investment repeat XX% pressure, presented of EPS operator in we a the and to skewed and our contemplates you offset than higher primarily reverifications as of to to context open change Further, as albeit with rate challenges another view is from there the partially Medicare contemplate growth. membership star economic as partially of to growth. will uncertainty XXXX such which timing, on provide IngenioRx the growth will our normal utilization. offset pandemic. to growth Medicaid that, more X quarter we

[Operator Instructions] Our question, Barclays. Stephen to of of the first line we’ll go Valiquette

open. is line Your

Great. morning, Thanks. Good everybody.

on in curious what one this spending. tailwinds more to higher was for that maybe you was was year? color The piece, comments you that about just voluntarily trends on you about thinking So, headwinds, are investment a are year particular Can Thanks. on the us as that for the more I give next those and helpful. certainly hear little give spending versus

meet Steve. from AI you, rating our way care slightly more is improve in and been need the past of spending four in number higher the where digital and period putting that members the money to in really they be Appreciate different the star to how than to networks and into by the accessed beyond. really question. and covered really it’s investing is ensure more capabilities more we be going customers to And, various here Thank that accessed met. the is, in plan And, in that future in the next stars investment Yes. the capabilities, investing order our

specificity a and at experience. AI So, automating improving and enterprise. of embedding simplifying on and It’s customer we’ll Day about and that reimagining lot all across processes the the more terms Investor provide digital in

a bit hopefully of the provide mean here So, you that in can little time. context

made what Yes. where as our just opportunity where increased course there the our significant I’ll Thanks, is our the adaption particularly investments And said, seen we as those commitments have result have build continue what we seeing of our obviously what actively are an Steve. an those a and consumers to in found to a our other John just with is pandemic, we we IngenioRx. around we been there much. is team Hub that the and of digital is, assets, over doing engage Psych we as very under pharmacy us for things which invest Sydney also that and well through we’ve more then, reiterate we in accelerate can in investing that stars now priority Thank a ensuring we pull you that assets. are key

Next question please.

of Next Credit Rice ahead. Please Suisse. we’ll with A.J. go the to line go

everybody. Hi Thanks.

any of or medical next next and then for out Just XXXX the a medical variables the thinking clarification as year what as a in reservoir is outlook can that for cost XXXX think one more cost you outlook the flush the point particularly commercial what jumping trend using question. some rate, point trend Or variables there about are expectation year, base? bit unknown off you trends, little and XXXX growth next The maybe we to is adjustments make takes then, cost like thinking is broader business? base year are risk my developing you thinking the in major about just with have you for deal about is, the have that of you should in question And this and to puts mentioned what you the for in year? in

you Thank very you. AJ. Thank Great. much,

now, John start me Let a provide bit color. more little have

to this the off EPS said, XX% our of XX% you rate XXXX of stage, our early As to growth view you XXXX long-term mentioned. of affirm at guidance as XXXX would

commented just Although skewed half in little the towards given presented risk pandemic. as challenges ongoing and range, unusual by remarks a it’s John the the his of over a prepared

little some bit you specifics the other color question. your in that asked a with of John? give So have more let me John that, you on

morning, you, Yes. Thank AJ. Gail. And, good

our the and think our maybe But clear do have we estimate where pricing I what assumptions of just a of many assumptions. considered. are here call they it coming think going some on expectations point variables I’ll instructive commercial time. at for our trend things to trend important, pointing in very and obviously are And XXXX competitive trend we see pricing are or to not everyone be specific actions are for you be highlight this provide to as I Our point of the considered pricing really reasons, part would

the actually that First to also, insurer and is we save And XXXX repeal fee repeal of billion of really all, helps going Anthem there the how or will health is mitigate certainly in a closely actually looking customers XXXX. its $X and removing at burden impact cost. permanent in care be accessed

much visits, Certainly, on that instance, exists before way that treatment, vaccine incremental how telehealth, still after and changes, of just testing goes is CARES are For acuity. list other overall deferred it’s how and to site demand impact assess of And impacted Act. the evolve And ER cancellation variables trends. the are standalone service then assessing all variables going pent-up when utilization are COVID-XX just surgery they those ongoing permanent how is normal of the year trying assess exists and or to utilization procedures. versus top of a And that we up, the and centers, we like, are each available, underlying be the impacted every

disciplined say are and we thing in though, being I’ll So, we approach our with very all being are is the pricing. very that of one disciplined that in our

covers pricing trend. forward Our

We to cover We have were committed so. and forward do priced to we’ll that. trend continue

XXXX on Xrd AJ more as through many Investor our right questions now on XXXX we Virtual I are these early stated call as March fourth in of working But of insights. during our finalize quarter this provide next into we insights variables are Day more And a year. January. course, our you, lot that provide the we’ll way really Thank our So

Thanks very much.

question Next please?

Justin to of go Research. the ahead. go Lake line with Wolfe we’ll Next Please

One Thanks. numbers Good I about Medicaid. ask that question quick morning. to wanted

number Thanks. you remember So, next talked X% by then, you you know in for you John, be the about can in moderation next actions resumes to at I XXXX XXXX? share reimbursement X% you your this net your us And Can thinking on for do for margins you get views that within – about that are year XXXX. XXXX year Medicaid. you. target talk end guidance? for said that with at tailwinds, given. Want services some if offset Medicaid do you the stars. that numbers, about in being was you to to within can from in expectation that rate on to Or talk as – it expect that of expect you terms saw that in I

I Justin, repeat half everything you Can said. the sure of you not am question? Hey, first I apologize. understood I two-part your

Sure.

for Just at look the XXXX? if tailwind net first

Oh the net okay. if tailwind,

next for margins Thanks. Medicaid year.

Related going fund growth my some everything why of other certain permanent get be a HIF, that of looking part Medicare part point $X.XX help we said, – don’t something we The part factor at question, something to Yes. are star as as in of right. tried tailwind as our cherry On else not itself, HIF to of of certainly rate said, to to want it’s our law. into the the AJ’s and to response that we I really headwinds and had picking that associated headwinds in was is into long-term and ratings XXXX tailwinds and part of with and a of and as repeal items the and to we’ve overall investments $X.XX things. in to is tailwinds as to of starting to improve reaffirming

I open of regarding operating whether and the I to to with rate think to as number to the is terms impacting get in are we the of but rates states certainly partners the how things actuarially there environment. ensure a that. sound Medicaid through said, be it I methodology, environment, normal we question. working $X.XX tailwinds, is of any lot of obviously the headwinds a or very impact rates with dollarized conversations as XXXX the $X.XX, associated quickly state those advice wide we’ll with return And think fungibility Related of need working and very are the closely that So, our appropriate collars corridors the we have to the

So, on on within Medicaid be are able our capital actually relatively we’ll is, appropriate a being close midpoint is XXXX return achieve and range margin focused that in well range. and to expectation in operate target that, to the of the

you. Thank

Next please? question

go Ricky line Stanley. ahead. of we’ll go Morgan with Next the Goldwasser to Please

Yes. is back seeing, normal. you on morning. the we also that My utilization are question stated you returning Good trends are Hi. to

seeing So is a you we maybe coming more procedures about coming can titles think color the of different back. talked John, ahead in procedures little are to And as looking XXXX, the And this between about the you is the books? you type what about give bit difference difference back? especially

if you that’s utilization mean thoughts back likely does think next in this how seeing and if is utilization about to you your that ER types expect shaping be So that to XXXX of there, these if year? are visits less will that

Sure. I’ll Thank maybe as And of context might well answer questions queue that question. the provide that question. you, Ricky for some terms in are that in your

are than that, underlying cost baseline exiting we in So, the comments if at add look But then, are, as below in, back seeing, my you excluding COVID we claims prepared would levels. that quarter baseline. they are at I greater COVID stated you the third be when

are baseline the the quarter quarter trends with a all combination baseline. as well the the and for combination the underlying as quarter that given fully seeing. fourth the above the with in So, we both entire and of other above We below be being ended COVID, we surge expect would procedures being COVID cost third we recent baseline started to that quarter

actually as with some Associated trending in are surgery rebound, we baseline the outpatient has fast instances. of it’s pre-COVID above recovered some the where even and seeing

as while the are that surgeries have to telehealth procedures this took such time to are as it care ensure and end, they Some And of care below ER through procedures in come more outpatient at a intentionally baseline our ensuring of we or setting still the by point back The a continue are care replacement need to lot that on actions utilization the in and we timely well. members that the be anticipated And to was to a to we costly joint is outpatient certain manner, expect through. redirect faster. whether continuity focused redirecting coming getting for setting. of

some as on off. things a this carry to a So, you is system these as are constraint will Thank that XXXX Ricky. not that XXXX call. estimate we and clearly – But we factoring natural cause taking look the stated for at question, work point competitive into are this all capacity we there and we trends at certainly utilization consideration I committing to reasons, are for to

you. Thank

please? question Next

Stephen Next go line SVB Tanal we’ll the Leerink. to from of

open. is Your line

for Thanks also two-part just And guys. morning question. on on question this. maybe the Medicaid, Good

health strong, it last primarily pre-determination Medicaid obviously least – like year looks suspended enrollment, So, based X-K just really end emergency. on the been will be at through

small had if and you wondering guys on related, then sort So, to do of follow-up. in peak enrollment

for give what outlook other So, to us a I type how believe to will that pretty path you are sense all XXXX. collar and and take pointing taking, I decent guess, are the rate that enrollment but you in on corridor can we margin, in the guys actions

I XXXX versus think a XXXX? that it looks $XXX helpful. was would think and million do how quarter you be And that almost

timing bit Felicia given had. million could what that, questions little million But and would had be that where to Sure. said Felicia quarter ask I you number. Thanks a as about going $XXX for that expecting, to around in of am and was about ask be, in the reverification the some all-in, with and your question questions the to speak expect things I what specific in we terms But very remarks, goes prepared of utilization my the other your me specific to Felicia? we address of are $XXX question. obviously rates. Norwood move let we that

Yes. the and Stephen question. thanks Good morning, for

we at take growth Medicaid say enhanced That spend this the quarter. FMAP. to quarter-over-quarter health of will where are emergency public their a As would end health been you states mentioned, today, right emergency. now through don’t know to of going X.X% second over period, And are – that certainly had look and I states at almost back year. happen. But in to also $XXX,XXX emergency, if reverification public next go just through January this the the the addition least receiving we is accelerated public When health you when peak during point, have XXst at at up we’re

continue of we through would suspend to states reverification expect the period will FMAP. that enhanced So

is could end pandemic. next certainly into a been February. continuity very And head during of We’ve care state care particularly of time in January partners of that important. this So we be members, our of our of continuity through the as year conversations with constant respect with for to

with we aborting make state clip trying our partners closely we working sure around type are of any event. to that So work

sure going currently that to the So FMAP when at Thank enhanced long as you. I has continuation certainly this of point, as the peak emergency are receiving. public states this and not health a things am are

you. Thank

question please? Next

Next to go Citi. the line Ralph we’ll ahead. of Please Giacobbe go from

Good Thanks. morning.

was XXXX? shake as by to our a ask And generally Just was quickly, sounds But obviously you and to margins mentioned side, this want first overall expectations seems you on holding sense your give of clarify better think XXXX. out wanted it to the maintained. I membership and where just in will if it the get guidance just I line hoping well. for about, performance us Medicaid X% like expectations target think then, could you than

you higher if it that on could So, Is help fast it certainly cost else? back is? something Is thought? Thanks. or just what you delta coming COVID

you Yes. Ralph, questions. the for thank

information is as are renewals very are we you states margins a associated we know, that’s X actions. of with half X – And prior renewals years. that our have January for utilized the over In trend typically we rate working Medicaid, January on and terms two target well with the have closely them of

really the associated the that. information XXXX So, XXXX actuarially we – sound rate have are with and

very those conversations rates how So, where going we feel and about are out. those good coming are

direction all In that know, EPS terms target overall reaffirmed. are a The backs we $XX.XX trending work we’ve range, an of increase there COVID uncertainty. period of of margins of within and But costs, to clearly, you the dynamic as Medicaid the deferred there. guidance – margin utilizations, interesting the are we the of some lot in right in, during had it’s XXXX, but premiums, call is all with variables coming the of we out a this get hard lot in are within

feel a the system periods in we we Associated and uncertainty. with inequities have created grow address And the in about strong made in in pandemic. our periods membership, help We We very by XXXX you good the resilient the of the think membership. the mix as business. times. would most economic cognizant here we membership know, We grow imbalances in that, we decision economic of

loss So, to elevated as terms continues guidance. to the an then, maintain And fourth lastly, the membership stronger, our fourth it are give in get expect we quarter we do quarter, to have and our helping stronger that’s partially back medical of the cost services, of that, are of of because coming baseline. through, COVID that cost top covering pent-up that underlying plus plus to and above the the expect we ratio is demand we be on all

we seasonality you what so, in suggest. at would point than questions. the to MOR higher thank basis And normal looking are for XXX But quarter XXX usually a those fourth

Next question please?

of line ahead. Sara the James Sandler. to go go we’ll Please from Piper Next

turns with different could wondering state turning to turn and how I different Thank the up what when for control catch up individual of Medicaid long Thanks. on, does fully if to the am it to benefit? speak is base you. out take the does redeterminations on at states we Can it then on. versus states in times end back you and evaluations when on federal

Felicia?

for and Good morning, thanks question. the Sara

least would government Medicaid said, can when execute upon public want Once the reverifications their generally control to emergency month membership. they requires you over states to quarter whether Federal that at of not and or to As would they your every business in through decide a twelve least at eligibility return I reverifications months. the ability but states health happens, period. that or thereafter, what, then beginning redetermined suspend respect the I that, entire members What book to enhanced with have through the twelve get have to that the expect FMAP. is States next Medicaid

reverifications portfolio, all you around when at is different of they intervals. So, commit as take as know make determinations which look we states at our those states, varying a XX will

commences. cadence with certainly that is the We reverification timing, happens reverification, around collaborative state very partners terms are happens. when the left very working with when with to in and they’ve what’s us the process of with once reverification necessary, our the closely respect But been return to membership to that the helping process us and partners members around educate around state that

Felicia. Thanks,

please? question Next

the we’ll line to question Bank America. of Kevin Fischbeck go Next with of

open. Your line is

Cross settlement the quantify Great. Blue Thanks. XXXX the just Wondering, Blue of the guess, impact I on Shield.

obviously settlement was as color you aspects on I XX% provide and/or impact growth, growth could see to beyond the that everything wanted number? some XX% any that view your wondering financial Just in change to settlement payment. the to to way on other this if XX% to would way XX% that get if long-term you

question, the for Kevin. Thanks

settlement terms be fulsome financials, we more much discussion. today including a announced in XX-Q we that our In will the in the of

non-monetary a national license of insurance you plan request local a the Blue Blue in third If are One, our of approved eliminating perspective the in took agreement still efforts of charge. to addition quarter portion subscriber the second the to But requires the is as morning. able and us approved, to for terms. part also, the with it national couple court self-funded relief best And give a plans the monetary to the the the employers Blue second that, to our agreement. for and to review So, just of we from have has be larger make rule be which of this plan. its to there benefits settlement BCBSA which will case. filed settlement bid settlement coverage some allowing to part which

third XXXX. As of you estimated in know, quarter fully our liability we the accrued

very that, and see really of impact the question. the for overall has strategy. of in terms consistent been changes Thanks In view our don’t we any strategy our

Next question please?

Joshua Next of go with Raskin go to Research. the ahead. Please we’ll Nephron line

recent furloughs on back Good you holding Hi. bit morning. I little Thanks. the memberships guess, I commercial of if are curious signs up becoming permanent. more better, just am seeing a any

segments is getting trends membership currently getting geographic from percentage seeing better areas your have sort book. but what on view then, are a the furlough, maybe their of in different still And any meaning that salary, or you benefits? If guys overall not

Haytaian I to on have the response business. Josh. Yes. Thanks question. going for that Pete commercial the to am

for yes, we membership better enrollment to continue activity Thanks Yes. definitely the Josh. and expected. perform than question, And commercial

noted have don’t the furloughs. of information volume on You furloughs. We specific

paying a rate, in can from we we think less that segments obviously has us options are We of the of protect in a that I done as share alluded close we’ve you as which in really importantly, our control, am our originally what a I’d helped make to it’s and execution fact contact partners of that and we the this that membership an with had unemployment then pleased membership the certainly perspective, well have say, as them the we certainly but most employer disproportionate say, expected. risky terms teams’ lot and furloughs, I lower performance. than to broker sure and lot with provide regarding I’d with regard.

only insured the our fully in quarter. several XX,XXX to Our as members have in note, point sales quarters. commercial again exceeded declined last the as we our actually then membership last important One for

declines net are by overall modeling in membership in-group really continued And caused look seeing that as the change. So, forward, your market. in we the future, is are the point our then negativity commercial you about we

early aren’t predict are expecting would declines. in to seeing saw market. what our say that we I that QX. continued But hard a we continuation by precision. necessarily great variation It’s really read, We with is of October

improves, have a a lot to are on am of am customers fundamentally that. teams. and of couple think a years economy I product with confident nothing that’s them. product The I’d changes are very they just really last So, we’ve spent well I solution where I having pleased options that meet then positioned. portfolio and in investing the say, finally, And we’ll the as time we for

you. Thank

please? question Next

Wilkes go to line we’ll Next of the Bernstein. Lance from

Your line open. is

how losses, that Wanted kind on of of kind aspect your and season outlook getting respect are interested business, penetration, in-group for, And is Yes. in then, so a little in not further ask Ingenio of particular looking the you wins, with XXXX it. the cross-sales through employer and here? to selling the to as

I I’ll relative question. add shared lapses. more we really our as the about to to good for Pete color. have in Thanks sales our our ability additional our But opening remarks, feel I increase Yes.

the very results this a seeing year, mid our bit sales that But his give last results I’ll – Pete over two have been unusual effectiveness. think team really in you this and because work strong so, group business are a the lower really I while still the has because small are of our done seeing And years more, has we year. is particularly we showing

lot retiree in we the that retiree XXXX, in national so we’ve Thanks at group done. question, In out example, – actives. in for for areas for XXXX a pleased, and example was The we’ve least balancing are how closed our for execution Gail with Lance. that selling group was – activity the Yes. very as said

larger smaller defer would said, market, COVID. lot really you did a expect that associated light As But you of in are as of accounts, they of with down activity. what’s some the accounts, and the going on, Gail good seeing jumbo expect, we would

in the really is marketplace. proposition resonating Our value

Blue high probably are the You, remains these our market. launched, cetera our as and well on Total the about have a feel We we you with Assisted Our the the innovative in-group solutions mentioned change et like are big advocacy remarks, Gail economy prepared the ultimate across playing platform, good XXXX country relates things our technology, it into programs really playing with like performing variable the All in focus into impacts. Health, engagement MSAs. Sydney Total to as growth networks consumer that. heard, covering in Obviously, and XX plans

component this X, As Prior good to our it X, COVID, did Ingenio back progress to are control, X question, activity as parts to to our strategy to get second good the to X. X COVID and But seeing in one. of year, across expect. can growth track X X as bit, that the quarter really to really you’d COVID, to to upselling, we future and our what were the to prospects all generate we a relates us XXX. solidly to your approach little on set to we getting definitely about relates even I feel part X with it

upselling really Obviously and the and improve. specialty rates with continues affordability value products focal across to be penetration a big being Our playing seems rates specialty total us to well. proposition selling point around medical pharmacy,

And jumbo Again, head colleague slowing pushed my ready. and to all we that. look really programs our about We’ve into actually Walter regard markets. Health value the into about Ingenio some similarly Whole Jeff in medical with feel the that was there then similar, Anthem a we We good resonating good proposition. programs. upsell the it You our forward have IngenioRx, as little feel team pharmacy we as the into down as Connections and Total is Health, future selling and relates do the like good working into it on Our very sales potentially Total XXXX, local opportunity, opportunities, really people future. total deferring I big that But really to to with opportunities. really clinical relates new

you. Thank

please? question Next

of Next Capital with go line to we’ll Frank RBC Morgan Markets. go the ahead. Please

around you think growth expectations the about mid-double-digit our in I updated growth growth the morning. in side around past, business But channel. talked Appreciate I sales. I in say, telephonic your digital color the of the MA Good and did the into think

any given you. around of or do AEP? just as that telephonic around thoughts versus the channel So, you expectations with Thank the color planned plans incremental switching of COVID, any any the have level and

much very you question. the for thank Well,

channels Obviously, that a more with expect Just are particularly sales during strong do and we the already. to face-to-face is little going showing digital amount of real COVID switching, do are a switching be less growing Early less. strong. that our difficult. quickly, when returns we of and shopping had planned as a time we people think from start year that is this We’ve

next very expecting question. shared of that. digital Thank results comments we you again, as a Advantage are will be opening strong and I a our So, very Medicare part – strong big in around

the Jones Sachs. Robert with go go ahead. Goldman of we’ll line Please Next to

comments highlighted but to I for headwind to you investment go Great. a question. about from investments not sense just wanted the the get year, Thanks year. this back and better a for the next just investments only

optimization the initiatives had like speed some you $XXX know million operations, I sounded a of cited So, it in you guess, this I in then year, the the like. charges that just areas market, streamlining and quarter. maybe business digital to

XXXX, around investments as So, guess, they then little maybe on in are those about would a just focused those potentially I think And different? Thanks. the bit of year size and really areas sit next today investments? helpful. how, you those more be here be and in investments What would anything

Yes.

learned reimagining think the office because two will around charge reduction want office-based the as But business. pandemic do areas to where the work. are presence we what nature each be our make we the And of the of in I company is of have bases change those we’ve So really to we them are the still just we is consolidate sure. I a of are space. of in that that all going in places again, there we states an is part footprint, One we and have going of still the it, and number that, to we

last implement. pandemic to with our year. we Investor is of as in part made, an what again, learned And both those the terms ability very we are the we’ve of Day of all what In investments discussed acceleration consistent back

other building, Psych digital a been of that telehealth. examples, we’ve acceleration needs great So ones, and that Hubs

workflows environment been redundant we to as to to initiative really an use things improve to we’ve that part accelerating experiences improve even seen simplify so consumers, adjudication. predicted embarked than consumers All out our of reach that is take had we’ve for business out and doing, of readily adapt steps, those claim we and consumers what processes use on much our AI-enabled more part operating how we and of and how

we it’s things but up pick that consistent, that So, again along see an acceleration dramatically. usage in nature. – Very

work question the accelerate the for are been we question able Thanks please. doing. next and we’ve to that So

we’ll ahead. go Please George from of to line Hill Deutsche the go Next Bank.

question, pricing you your XXXX? the have basically kind And that just reflects to a lower for guess, range question, John, of just when Hey, good you for the morning looked for guess, it change, how intention at continues how the in the tighten you guys you guys interested think thanks growth. about question. but XXXX? numbers you then, about if of taking I modeled that’s guys how talk about utilization nitpicking not can in for mix think XXXX, that into guys I off the And was range kind of current the utilization pricing talked XX% end a and to

we’ll next wider guidance for a year could tighter range as opposed be So which a see to EPS to XX%? XX% range

Thank for questions, start question you the last with George. your first. I’ll

modeling. Our that the just done tightening entire on we XX% is There we XX% an overabundance to given that Related XX%. a question was to situation. comment no a related uncertainties growth sustainable deliver caution, quite end we can of range XX% beginning, to lower lot sophisticated the COVID too that believe rate long-term The to and range of being and intention the really stated about due of at some time. utilization the have for is the to do is pandemic still really

the Our as the utilization recovery are pandemic crisis new is that and on we constantly the involved. maybe incorporate scenarios sound. of believe going The assumptions the we various updated in do lumpy. learnings and beginning model very in our have We been modeled since

we be all forward those to are those of in of XXXX. natural our some just I as and And clear, system the into thought believe an to cause will variables to incorporate an capacity think pricing utilization that think there stated And constraint I will yes, do XXXX cover As question, we stated we tried through into have to before, earlier be I carryover answer process. then, all some naturally trend.

that And you. cover terms will Thank pricing with so, we our and is, forward associated our revenue expectation differences. in that, trends of our is price

please? Next question

Please Mayo Next go with Whit we’ll line the ahead. go to UBS. of

some morning. levels Good about or Thanks. at business lines thinking of What all are you guys across sharing this [Indiscernible] year. your

asking of towards that signposts the are looking So, are that what you perhaps suspenders, maybe policy? shift instead

thanks the Whit. for Well, question,

think we there care as as long in access part continues policies, of to have in we continue we we the as care. questions. we baseline. evaluate. now, And You in as expanded serious and we demand pandemic. I a Timing now think we are on vaccine, going pandemic a that something that we lot seeing seeing obviously, mentioned about really issue Right the is are guideposts government business, to and and pent-up to rise cases. uncertainties There clearly is continue COVID model which of seeing testing right where and know, we are seeing and lot to access It’s individuals our are above the of to the offices and are that be about open a are and to into

multiple know business. particularly have that is our access right have we to are the access conditions sure are also, goal who we we So kind people care book out those people And seeing to care, which make across our reaching is important. of remember, of

we So, in model continue terms it. to of that,

to ensure lot COVID. learning are that And a We about at the each and is to access that more for appropriate goal question to have and happening please? the next look is, care. continue it we are that our events with we of one Thanks

Next of Dave Please ahead. we’ll with go go to Jefferies. Styblo the line

question. there. Thanks for Hi the

talked a to really is the XXX other point, sort Medicare quick And XX point at Advantage. quarter then, about think XXX of above clarification. of a – as about the to when days of question a normal second a being you reasonable this clarification. fourth John, is on So, MOR pocket

that, footprint or strong more MA of expansion talking your we landscape look growth helped by X% are about again senior this population. just geographic past years, double-digit guess, at the X% the it file are the you I You period, has expanding guys momentum. as certainly only looks in like of

share I from that So, just momentum terms in am sustain you what of taking peers? wondering that can gives confidence you

Yes, bit to the has the of be mix doesn’t Thank XXX, with associated referenced. a a XXX basis starting changed. for first look any XXXX, as point you, our mix of good the But membership quarter the Dave. from at of question to is I comparative that that course fact answer quarter XXXX of fourth need half I’ll adjusted as fourth MOR. the the of a increase basis point that

the offering. feel There second of very my terms we few in One, confident product opening In really question, strong why are comments, do which things. about shared is our growth projections? I

of to We plus be to zero or access our XX percent have expect members plans. premium in

in in one also is have the states really brand and and nice offerings in we third, strong in our is seeing some is states we many Blue right we share our are there space. continue And supplemental there expand. do Blue that of are I commercial in to states where Our mean, then opportunity number market those incredibly benefits those the space don’t be some we significant selling And share momentum. still of We then number growth. have one believe brand, to strongest states. this now, market outside our

and We with joint rather. Blue our partnerships have ventures

lot a seeing are we again, so, momentum. of And

well. Our resonates brand

Our in of channels the very sales are digital also resonating terms to marketplace. well

– we significant while some we expansion. have have overall, don’t So, a

gain to we are offerings and you. that help that counties also we’ve states very are think will XX resonating quite But us. our feel new do our our market We strong in entered and we well. share again, Thank expect

question please. Next

Steve go Next Willoughby of with ahead. line Research. Please go the to we’ll Cleveland

morning. Good Hi.

Just question. essentially going how I for paying wondering how a of quick thinking much? guys in be them you terms COVID to about are is and was vaccines who therapies for and XXXX cost of in

Well, question. thanks the for

I potential. very COVID storage, available a But a mean, XXXX. summer vaccination say it learning as no ultimate at rates, We’ve transportation, lot be the and that vaccines total. I closely when there as early of stage, are has are remember, where obviously the of scenarios of really variables. obviously our think, only one they’ll you dosing number from cost in or this goes the pricing. are about is There of a vaccines lot including modeled while whole requirements, on is one vaccines, answer watching situation of we Clearly, things. January, to variables, into ton is focused around that of

looking of COVID wouldn’t total the look at are at I this cancellation. into We and cost

to first. advocate highest is our obviously members goal Our risk to protect

So, and going understand some at accordingly. gets lead to is CMS the we’ll to we be Thank that obviously also point But providing timing. again look you. follow their that guidance to

question please. Next

of to Please ahead. apologize. I Next we’ll with line Charles Rhyee go go the Cowen.

we’ll Taylor of with go line ahead. Gary Next to the Please JPMorgan. go

A Good Hi. question. two-part morning.

about between business XQ Anything either of billion annualized repurchases benefits Thanks. around second anticipate material just this last years you the The we it looked excluding also billion or guidance the number, from adjusted XXXX? that would the in outlook? $X Given those in contemplated wondering question, be part share in there basis. $X.X optimization earnings are Would four that on XXXX extraordinary XXXX and an for range again – annualized year? fairly

did as again, we Yes, have the with is referenced of to you the become runrate with we to our will cost first SG&A optimization, of Good Hey. for ratio by of come here years exclude thank have this And Day get of in And the the all savings benefits that associated at part that certainly questions. there. third step period XXXX to certainly this XX% Yes. one quarter. over and morning, company. a charge in Gary. plan administrative to our get business we we the the certainly had And XX% got our talked Investor associated and a about, structure through

to more the AI, investing part going other is of we more our obviously stars the also and and investments into or money really exclude putting of money we’ve any not the the from would question putting are type cost into answer I about that, of talked numbers. digital incrementally say The those

future. the better should position clean really fairly have the So, to company much, some and opportunities be some much from have XXXX, reinvestment savings perspective that we’ll for that we’ll think we help

a like Yes. one-time to And I just too, reiterate it’s charge.

about we are clear so just that. So

yes, repurchased And share through billion year, approximately the This we’ve the end Yes. thank on September. then, repurchase, $X.X you. of

bit or really a been when in based on third thought greater a quarter, than a it PE we should have far perspective. stock repurchase could the here increased what price multiple We have especially pace was share our down,

opportunistic and are going We conditions. be of obviously watchful market to

our buyback Our dividends. the in free M&A about either reinvest and stated the of in XX% into to into business, is XX% the goal cash flow or XX% share back

I of a quarter little than given end any the fourth And one that the opportunistic quarter. But couple in end then XXXX I’ve price and in what stock last five are Gary. the year. in correct higher at Thank we’ve those been And allocated you, it’s of our appropriate exactly ensure just year to and in full here be there. we day, not the years, year time. never buyback into share of exactly with the continue in be saw. any They that bit the one maybe the expect that going appropriately. being need to that But buckets head believe probably correct As be even stated, capital from do our would over weakness we I will period we would

Thank you, John.

have we for think one time last I question.

And go Fidel question Stephens. ahead. our with comes Scott Please from final

A - early a affect may acquisitions time of XX Blues last in this know the Okay. I non-Blues about theme, so on wire. elimination circle And for in ultimately time? of years the that guess, I which dormant just back Anthem, larger sending obviously just parts. think settlement. to the do under renewal would strategy perspective, terms Thanks doing you I wanted this here Blues Gail, just, it’s two here of from whether, you the a the so? One, also question, for ultimately broader me then consolidation think answer how Blues Blues been But And landscape. Thanks. for lead lead rules the over to has could to or over the just

Investor And, consistent. strategy, Day as before, for I incredibly at thanks which Scott. Well, the said out has laid remained our we question,

And so, we don’t see strategy. changing this our

group as part opportunities. and a selling And our from actually and opportunities Medicare partnership Blues, Ingest in partner you recently We’ve very number our of we’ve significant successful announced and IngenioRx services with to well a with done Medicare. as Medicaid have offers been our We other partnerships know, in them group. business business, of diversified in

we I very Anthem. about prospects have perspective, and changing before, our from as I don’t see I really are the think, this I I we stated see excited our growth said across So, that strategy – think

joining I morning. So, that question. everyone thanks the want this call thank very for much With for that, on to us

not path growth As commitment simpler, a more deliver to that effective those our a healthcare affordable, Anthem we and is serve. blow to across for shared for privileged by are today, our we enterprise driven more experience

always, to for their my time during customers, to unwavering As for to country. commitment most I gratitude communities this want our members challenging our associates express and our

affordable we your time I those forward you continued and see, for building you experience As for we a interest momentum committed more look delivering to throughout XXXX. our and personalized remain serve. to And on simpler, Thank in can Anthem. your

Ladies for and be XXth A.M. through this XXXX. November will of gentlemen, conference XX:XX available after a today replay recording

access for and entering International XXX-XXX-XXXX. Thank numbers are the any can dial, dialing XXXX. today. use you XXX-XXX-XXXX replay conferencing. time XXX-XXX-XXXX code Verizon concludes the code system and access at access Those may the our for XXXX. and using participation You This and again participants conference for XXX-XXX-XXXX your by

disconnect. now may You