Elevance Health (ELV) 21 Apr 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Anthem’s First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [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. Please go ahead.

to quarter welcome earnings and morning Anthem’s XXXX first call. Good of Steve Tanal, is Investor Vice This President Relations. Gallina, Haytaian, us earnings Specialty our Boudreaux, John Government call with Business are CFO; And this Norwood, Gail President morning Division; and Business and President Commercial Division. of our President on Felicia the our & Pete of CEO; pandemic our update overview quarter financial first financial will the on response turning over Gail our our the begin on financials call will to of by greater and to before guidance John, the provide detail. updated discuss giving an touch in an call results, our who

We will available then for Q&A. be

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

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

earnings first per for growing care. GAAP for this its COVID-XX we scope quarter year earnings XXXX challenges firsts $X.XX, quarter implications reflecting of us to share of earnings and and Anthem’s the the and morning, in morning, When momentum were today for understand for our came beginning ago, environment. the a This we health you business together the of Good we call reported pandemic joining only thank of just share despite call. adjusted per $X.XX

officials In to XX local led members day ensure From a federal pandemic. far our these more partnered than XXXX, and state resources than with volunteer they characterized one, such XXX,XXX need hours local the with so we addressing hours incredibly we've critical proud logged isolation. their how and were more social XXXX, food insecurity, during associates prepared in I'm of as by and through to the Over and last months, period issues uncertainty. our in communities, support navigate XX,XXX

a where, multi-channel recognize Our able a We that efforts access shifted our critical against treatment ensuring in-home administration members nearly cost reach been pocket have two-thirds equitable and for in in can when, fight vaccinations. of in recently to approach, the while costs on testing we've commercial members, in of information with our with for from covering we no they vaccine and access homebound out to play members vaccinations to including pandemic, own their vaccines communities, coordinating Through our role and our regarding safe communities. the focus vaccines our sharing. and COVID-XX how

pandemic to most who at addition, consumers. clinicians diligently and seamlessly through our have support HealthSun our CareMore incredibly our I'm adapted and In the to grateful have thousands seniors vulnerable of get helped associates, clinics vaccinated. work our

Our focus to to and own with a on live committed associates, lifestyle. health our we're starts empowering healthy them

Associates donation offering provides financial For towards which care to Fund, of in behalf received credit their choice Cares vaccine, on those Anthem own or one-time a need. the the a premiums who health to a support we're Anthem their

the quarter in but growth our resilience than organic in core our eligibility the honored the Membership and strong have for market balance to With with the influence a Medicaid. the positively We're reflects clearly Medicare local years, our a to work. leading and through communities in-line country, been in currently the to business, in we share Medicare Advantage quarter. more unwavering of of XX holds remains an consumers, in communities not health with grounded which first of growth health our has As live that company our only state Medicaid we Advantage Ohio, growth first have commercial our by government selected and year-over-year growing also business the the expectations led where Anthem on [XX%] robust. been re-verifications tracked membership across positions. commitment serve hold beneficiaries

consumers enrollment to to with Anthem of growth the With the in led be this year start health our outperforming business. ability our further a launch Commercial State the products lifetime contract, underscoring grew serve will sequentially across Ohio of trusted expectations by risk-based all partner.

attrition our the five slightly of the group -year, past consecutive our in electing In Sales strongest until large our by business. year-over delay spite based fee and to sixth national As driven of selling in had many prospects lapses for decisions in XXXX, for expected, decreased group exceeded membership we fully the in-group of years. commercial past insured seasons quarter business XX. XX one account

of sales our value the of valued and our our to a strength solutions, innovative Our customers. being to partner our commitment success the team, speaks to

as Given than our to annual us to solid per combating our EPS the to achieve track to on greater $XX.XX, continue adjusted guidance resources long-term are putting we dedicate earnings adjusted XXXX $XX.XX XX% quarter, the than our increasing in performance target, overall we XX% share pandemic. growth first from to even greater

resources care We million care with channels them wide specialties help XX close our the from changing continue on providers. have how are insight digital with fundamentally will sharing by to leverage to and healthy to of drive improve that experiences a and outcomes solutions health digital to us, engaged address access our deliver lives. to help and to technology people consumers disparities we now ahead, and lead exceptional array Looking virtual we growth, expect

solve problems our Anthem’s Care aims our distinct Concierge digital solutions, of program to One for customers.

connecting sight centralized the them. team next members allowing times. all program line shares Today, that chronic suite with single over support with seamless time data programs a Our enrollment monitoring This their into years. real remote entire when are it's for right X to just conditions, patient seek and few offers our Concierge to universally care under them of Care experience programs integrates for or on care platform complex them facing members, at time tripling providers available million real with of in

also manufacturers device experiences with and that allow capabilities clinicians conduct members’ connected better expand options to and for culminating have affordability. care patients their virtual leverage their partnered personalized to to remote improved We visits, and outcomes office

affordability real time enable to to collaborating to drive month. we to care, with automatically commitment tools into smart focus to Our App care by providers, Health of to that deep medical outcomes. with partnership network while improve roots with across better a and for deliver we high and as value-based guiding commercial is this a benefits We're network high improved most, growing our who launched partnership Blue Shield make driving recommending chronic provider healthcare digital aligned aimed on the physician are CPI in greater data, savings to on us quality, location. of better our ensuring at affordability, affordable and on and searching us needs care members arrangements information Blue the what Association. consumer nation's conditions, providers, will digital healthcare by compelling, our year, access solely markets. with goal addressing factors are the informed their focus deliver enhancing provider performance matter have most to with towards making. local down continuum goal and and in best-in-class on the of Investor our high the gives them Cross The certain towards our The cost such these decision Day performance providers largest on and The XXXX. trend last outcomes. complex enable coupled providers conditions. with is facilitate A XX% and you with our with capabilities our account to personalized up with is Earlier shared needs, providing taking our at help communities with in tools them enabling based learning, and of these default scale machine average real and intensely control us decisions. focused XX% integration access also on help capabilities Through greater to care access When partners health members AI consumers to and capabilities care in we're specific initiatives quality. Predictive providers to people of finder time Sydney of AI access Anthem’s Blue

of acquisition MyNEXUS more MyNEXUS Medicare health since pending individual Our of customer MyNEXUS. with to and has home and coordinate by managed advanced analytics of combines retiree digital and XXXX the of expertly members a group been Advantage currently care. our XXX,XXX than Anthem power based manage

overall more and members’ acquisition with of we portion of Beacon. of us to the Aspire, post diversified services contributions MyNEXUS We important, [AIM], health, had to business positive Equally impact and acute greater experiences create pathways of across care members. this like pathway even have healthcare from to first-hand provides quality managing seamless the that our pillar forward expanding A life, home look strategic to dollar. group with on seen a will our Anthem key another to end-to-end this our allow has

major work obstacles across and transportation, going Anthem look in this year, partnerships on employer's into second through help And designed offering to with new drivers a needs health. scaling focused a resource this safer markets the workforce quarter. retailer address and of only for to employees. need core programs to on the Through program employer’s is workforce productive to this Beginning coordinators As we an national of social and their introducing like will Beacon their of environment other the back solution will launching focus after employers transition more food, program, The in the housing, impact addressing as and identify creating forward health, this basic the positively continue to future, things increase remove community live innovative is type an for resources. our workplace. Beacon onsite we

partners, Should growth. our we our on turn an our more performance the care now at business in our accelerated its will John to Regardless the services is the will our ready look pandemic balance Should an scaling as unlock our sooner, of class business stand full ahead to Anthem’s as sector. and well by in to most healthcare ability detail. likely John? commitments health and well-positioned to the plans pandemic are and shareholders. opportunity I'll commercial economy to balanced serve over ample the momentum. discuss the resilient faster, accelerate other deliver we externally. our grow forward of continue to financial Medicaid recover end to the in in pace. confident the we consumers, members, our to potential to to and businesses year, we care persist, have Anthem’s Benefit best be to the As floor come outcome, And business adapt among carry

everyone Thank to Gail, and you, good morning the on line.

Gail year-over-year. of share earnings quarter earlier, results, we $X.XX first reported mentioned earnings over including As per and share X% GAAP adjusted strong $X.XX growth per of of

Our quarter or quarter a strategy, the members, year-over-year, of pandemic. of our continuing enterprise an while with challenging XX.X reflect lives, X.X to million macroeconomic results the environment. navigate totaling medical increase membership ended execution through We million first despite the X.X%

Our quarter, re-verifications. risk-based prior driven members aided organic primarily of by by suspension by year the grew membership X.X Medicaid, million over in the growth

release be growth From the In This our grew purposes. and fee-based offset double of with quarter full business, that delineate in-group economic achieve changed to addition, XXX,XXX given membership included note within by negative year. our in-line presentation to which fee-based was to XX% partially challenges Advantage and a the risk-based our was reporting growth Medicare lives on first and the for expectations, commercial commercial pandemic. track digit for table membership, our year-over-year, in by back expected to or change membership XXXX looking have low by perspective, presented we press modeling a our please the

growth our resilience complement continue overall another both significant despite core benefits our to as of commercial backdrop membership reflects businesses challenging Our well. and [Medicare] one in presence value in economic and

was payable driven and MOR in First quarter impact basis points. of or permanent Medicare points by quarter quarter insurer operating basis growth of revenue revenue health by partially driven was and the roll-out testing the recovery favorably XX% than loss repeal vaccine permanent our of The due the would XXXX administration to by first of impact $XX.X of developed approximately we Adjusted medical pharmacy in as a by quarter HIF. a of basis care including the and Medicaid associated ratio fee. higher to by our than and service, developed HIF, COVID-related quarter in offset when cost, in-part was repeal Medical and of revenue. at COVID-XX, non-COVID with in first our or the driven to lesser expense increase COVID of over in for decreased of for premium for excluding XXX quarter prior day earlier quarter the first calendar of year XX an extent, an offset cost and expectations, the XX.X%, billion Or the reserve were year the the increased product Growth XXXX. the the prior over Relative XXXX. of have cost first first X% an entirely expectations, XX vaccine, the our cost, faster XX.X%, anticipated. better by reserve XXXX claims decline well of came hospitalizations had reestablishment. of sharper quarter points also development decrease the ratio as first the dates relative This to accelerated a but extra SG&A

SG&A against the spending first growth, HIF, to have to key the efforts greater of Excluding our will leverage driven a to ongoing to XX would XX% ratio growth enable the by the our by including increased SG&A operating achieving by long-term, support offset XX% in will target to investments The efficiency the XXXX. increased digital enterprise, ratio points, partially our us by effects we're over and operating be become our making revenue. basis achieve today

upcoming fund and we quarter quarter XXXX. debt with acquisitions due to our debt sheet, and maturity. the increase refinance pending XX.X%, ratio XX.X% the balance up at to in ended was from capital Turning to of The year-end to raised our a

a cap by expect year. below the ratio end XX% to slightly be debt of continue We to to the

guidance representing the uncertainties. we to average continue our that XX% in-light stock the at nearly increased quarter XX.X weighted more the premium our common And of and quarter, payable result, share for slightly X.X X pandemic appropriate At maintained we prudent of of which of $XXX.XX and full-year. remains with During in billion payable associated repurchased point, million, its than a initial a ending sequentially, guidance. $X.X believe approximately shares posture full-year approximately million at a our price $XXX year-over-year. for claims with XX% We repurchase of claims X%. growth first days X.X to respect year-over-year, days reserves compared days days, as increased of by up is Medical the this

we $X.X income net X.X holiday we indication reflects for a collar performance. share of $X.XX income adjusted and payments Note billion guidance settlement the vaccine cash both expected with times earnings. multi-district $XX.XX. the the first cost flow benefit quarter as first later than approximate [MLR cash drop $X.XX or Overall, as certain core and the than during result, quality percentage than pleased performance our will administration operating quarter the the of Finally, raised from our was to our that in the higher strong full-year on extension first in operating by of payments]. another have outlook satisfy uncertainty our raise pandemic. through the offset as And associated with net from flow or make year, year of upside of we end around ongoing litigation earnings the better our partially yet a greater per and by the in the quarter, $XX.XX strong and greater The the are sequestration

associated headwind, of long-term the of cost to XX%. net be we adjusted continues share embed target XX% order outlook with and track our annual full-year to to million. deliver $XXX on inside per Despite range Our earnings growth this to COVID pleased in are

procedures a fourth higher and variants, and businesses pandemic. quarter, with the new episodes our remain Notably, of COVID for demand care a core While potential the pandemic. for the healthcare with uncertainties potential prolonged pent-up the associated of during associated wave, the for the we services, perform risks well cognizant of acuity throughout deferral

cautious, per the quarter, Our this to between but guidance and despite reflecting our outperformance, quarter pleased share updated first XX% much pass are of our we guidance all a year. first in in raise With to occur the the of these of we adjusted year. the of XX% the full-year factors now earnings forecasting guidance upside approach of half balance the first and expect contemplates prudent much to through

Given we administration to now the to during non-COVID roll-out a second the rebound COVID absorb and faster of vaccine, cost sooner, we utilization expect higher vaccination expect quarter.

open basis As a our the currently near second please points. that, to operator, result, we are be the of our or minus to modeling with midpoint quarter XX questions. of [MLR] outlook plus call XX%, up full-year And

Justin [Operator go Mr. Research. Instructions] the Wolfe first Our please from go to question Wolfe, of line ahead. will Lake

Thanks.

numbers of questions couple a quick here. So,

of the significantly but in you reserves actually First, that. reserves PYD and PYD] typical, quarter, grew billion above despite [growth had X.X

I how membership the Biden then, that growth, hoping exchanges administration on, color here able some you that some you how been making was the know impacted changes in hoping drive against was might would future some potential has So, and the on the a could you you I And the benefit to us significant Medicaid color states quarter? to Thanks. know, be the of point? seem the give by to think give might us you Medicaid be re-determinations at in offset restart

Justin, good John. questions, you This for Thank morning. is the and

question but $X.X be number development, that basis. looks is So, period the you the on you misleading. out can note the in that big the billion I'll And a with gross know, somewhat start number, prior know, like in number a presentation reserve please vacuum a

we're COVID. we that But believe reserves know provisions. are contractual MLR You funding some most mechanisms statement. know, you you question, as and of items associated importantly, release going the never know, you was to that PYD of a that consistent percentage that believe the that and will risk income this And, some rebates the impact the released, of corridor net through the large hit with know, that our quarter a maybe benefit I'm we associated calculations, collars, with affirm to sure that know, quarter, is we [with reserves have statements be you reestablished I will with that]. no there uncertainty with first the

Justin, Hi thanks for this question. is that Gail,

In terms of the that solid feel exchanges. individual extended will membership and that it some about growth be in of we now, the while open midst the there exchanges, we the feel pleased are in we're enrollment

hard at re-verification I very this your that to of our though, addition, XXXX. all question, assumption affect that In see part the is does of through it's us remains on hold how think stage, to second re-verification? for

You we inside of times a Medicaid know, business, We've we've balanced commercial for a a as natural us. the a shared do at, number growth hedge significant of Medicaid our individuals serves really into stage. this at market have amount from the you the know, of portfolio. not mix that we But look as coming and seen

etcetera. Some be of haven't still stage, the that at just But been may are e-verifications. and timing on this significant their plans, growth in Medicaid. people through employer we seen a It's still predominantly

Medicaid other we go will as really continuing states, The people of to just approach even don't gradual our that states I in in the re-verification cliff a is XXXX We our see a away want as work with more about we think as as see that note keep event thing much rolls. on to XXXX.

and for So next we'll go the to question. the question, very thanks much

Next, please go from go BMO to the Matt Markets. Borsch, line Capital we'll ahead. Mr. of Borsch

me? Yes, hear can you

can. I Yes,

question wanted management just Okay, to utilization your on sorry. a I ask program.

curious apparently to It's drive quality services blowback seems Specifically, they're other regarding they locations? less to I'm sort the actions. describing I care. I of from pushback plans you're the outpatient hospital really your understand not just intense campus is with handling what familiar hospital referring taking hearing claim off some how providers freestanding of But know, hospitals? to think we're to be the to, push you're about what not financial is what you're expensive from all I I'm doing and I'm are what similar what alone, here. related

Matt. question, for Thanks the

your in you there's lot know, I hospitals. and on think question a that specifically not just there to,

care right You focus ensuring really place, etcetera. and really know, are appropriate in place first driver’s providers service is value-based the foremost, that seat on of of our our and implementing care

think to patients specific hospital in ensure to I As are outpatient the that with care providers, however, we about as patients with our the what's our allowed more facilities specifically. are supported question, hospital and enable in the to care more outpatient of looking we in as settings your right place work well being that our settings. concerned outpatient happened Clearly, were pandemic. about That us

them so, in have implemented And place we so those we had before. policies,

with has become in new, been this I access as isn't greater as well as pandemic, settings, individuals. comfortable accelerated it's but the those for So, much have patients more think the

of sure And terms the setting in is model, it drive with focus care at that the trying that's much to physicians. closely place to model, So, been overall make and our our appropriate affordability, work we very again our affordability, value-based where local it's specific. ties on right right

through it's really So, it's not physicians. programs], just part this with Anthem value-based value [UM doing our in programs based of embedded

very the So, thank question. much for you

question. Next

we'll Next, go to go Credit Rice, Suisse. of ahead. Rice please the line Mr. from A.J.

there? the on Are around to doing that of brought get to significant and to realize guess you you the the initiatives updates providers those might are I any way it I'm this launch hospitals, how much the edges? amounts give the – utilization network there using in you're doctors, patterns everybody. of typical that extent of out to sounds Blues, the about? is I have Blues this you're high Blues, ask, you with the sort like about performance patterns talking people the And or change get with collaboration, And you're around people of about close that I generating, you with also of guess savings savings? the for their Hi, thought other other in a interested of changing some Thanks. that working to just care asked I

question, A.J. great question. It's a Thanks for the

really on XXXX. high to bit in performance how shared I in launched just it of opening in give remarks, And launched just works, a As the other conjunction we background Blues. January of beginning my it network little with

new across MSAs. now offering And So, the fairly XX system. it's right available in it's a

those, So, population, most we now, of half but Anthem of to year. U.S. comprise it's to going right those, XX% something areas service continue are of grow roughly but every and the half in we're about

range up I to that's are you savings So, significant. The around of gave anywhere cost XX%. savings think I from to important. XX% a

in network like strategy and strategy, provider data also a already focused based we high providers goal and that the this, leveraging to is simplify on Our our across deep it on relationships on country. and focus the deep performing scale know

what you those the So network, to markets January. to high we're XXX,XXX, access I to enough XX% to Again, grow. select Blues flexible over picking in new with partnership build to are of and But seeing, this entry, in that. allow know, other us XX% it's develop to had offering it that is and who total you we is local a had our our expect a know, have in we performance think continue offering, about our members first it to of customers number access again, first

knowledge our deep networks of So information that other partnership and with again, off this is based Blues. around deep have our and we

the thank you much for very So, question.

please. question, Next

to Wilkes we'll Wilkes, Lance line Bernstein. of Next, go please the Mr. ahead. go from

with you're capabilities. morning. could or your doing opposed focused and what value-based little contrasting delivery care on including that I was talk care priorities I'm you deployment about in and specifically as companies maybe complimentary of capital digital cross-sell, delivery good just discussion companies an to with what businesses partnering In particular, is, kind with on update that, where respect Could first, in and you organic on stakes especially give to, focus you're and to your acquiring build. interested Yeah, things your if like and a bit and initiatives,

the question. Thank Lance. I appreciate you,

our the flow capital the advantages well very share with to to and directly business, as approximately XX% Gail that, to So, And to comments is return for free it specific on you dividends and reinvestment looking take their our activities I remaining know deployment deployment think think want a in first opportunistic the that, we of to close associated be and question. We're wanted as XX% but, all, buyback back with approach and utilize consistent. for obviously M&A I of XX% as make shareholders. your to couple cash

Lance. thanks, there. was a There in Yeah, lot

So, your, start each system. try I'll care of want in of question, sort the capture I to is with investments them. which try to to underlying delivery

partner as us I help understood drive in our virtual of in are though, and With you And [Anthem closely on feel strategy terms to in relationships. a primary to we under created eight our Part and investments differentiated times can make investing this is that care that value-based know, I've been our again, carrying what's think, know, local well, is we with with You care understood, ensure and number them using value not of that model enables already our that really markets. we've the shared and performance data better and under we idea], the physicians we one to managed in by first that, foremost that of valued patients in AI work in care call. can decisions. them, that that participating through said, I think

but which can as is, invest area we Beacon, we I we’re CareMore for examples externally. in you leveraging would MMM. care, that and across models, members where And also new DBG, our more think specific capital, areas well Anthem and announced conditions. create driving know acquisition ones HealthSun, Aspire another MyNEXUS, I in creation membership our address first and examples as of in participate So, where and value can down healthier those Anthem there where of where payment the value again, and complex that and deployed examples costs the of shared be our of foremost that And both overall and enable to are sell to create we've recently keep our that

of help bit create Investor as So, you drive that investments think, for and a shared our then, Anthem And we're to using number of there internally. know, capital both support, our as you I know, platform. how the we Day it's digital well a strategy making in healthcare at customers, double a we're to better returns,

Some Sydney, in consumer with also We're those are to advance are continued where investing model. tools. of health Care. OS we've our we around Sydney

stakeholders to wrapped All much part I to the intelligence collaboration recently called artificial want allows [hydrogen]. of that partner to that's announced just our we really better us that’s that system broader of drive is, And health the share around decision innovation. with A last collaboration making. area across

CPI, this there access virtual goal really quality. whether enables efficiency virtual access towards driving again, for we've care via giving with partnerships The another it's care Our is to and consumers which virtual text, looking Health to is shared, phone, to costs video, and basic needs. us down chat, provide or K And care support care. to trend opportunity, health

we're So ecosystem. innovation, healthcare the example part of that's investing of overall as an where

lot as So investing participating and delivery give examples virtual again, in sense as a value you create we're the of system, well how there, trying the both from to a of our there, in that we healthcare tools. in

Hopefully, to thanks that So much components very the we all got it. of for question.

please. question, Next

to Windley of please Mr. go line from Windley, Jefferies. Next, David the we'll go ahead.

patient pent Thanks up claims a perhaps bit kind into, your been morning. in taking I question. into higher hesitancy and thanks. it demand Hi, my visibility and populations. utilization, senior of seems for the that Good little drill wanted has to

seems also it but out borne logical, that's think data. the be I to in

you a business, if keeping feel on a How assess and visibility you the much books wondering I'm to kind balance into or how of in whether back, reserves scheduled? that of conservative position the care against of capacity? deferred speak might system the have position what to sheet unknown, come the much point of Thanks. much come relative levels between how you able at this so like might what not back, against the And known and is are the do you are you're more could

Thank David, one you've question. you, I respond all items on. the lengthy to that focused that of for if can See,

know, very, claims obviously visibility, You the terms the very of closely. track in that we versus

businesses. you certainly know, and the the assess basis, are You core versus to deferred, care not a understand on that trying of pre-served, those that. at evaluating associated that pre-authorization underlying are we're deferred daily types looking with, know, that information We're

bit we a little our have with know, But in geographic, And, as I of monitor not to associated to continue markets rates in a vaccination lines of still there's shift terms noticeable point early it's at you too a non-COVID know, disparity big business. utilization. increase. closely said, probably as this You

been know, senior the has vaccinated population sooner. You

which And we've significant the factored a in in-patient with totally associated believe can we are We decline seniors, in. that non-COVID so COVID seeing rebound a faster. means bit that that

You get people largely mandates stay after were to care home still XXXX, for know, the in at able ease.

are backlog of of as believe capacities natural that think there, same reserves is the to unknowns we on the are know, there at part don't you other So, to that well. maybe we systems question reserves focus and the way, giant And end, just uncertainties our quite and the associated opposed associated prudently and stated, lot they a the your COVID with question. are very with as your

for hopefully of that addresses your that thank you all So, and questions.

question, please. Next

Valiquette, go Next, please we'll ahead. Valiquette go Barclays. of Steve to from Mr. line the

XX% track growth guess, normalized to, of want in John, the still I made today parts, given Yeah, about thinking within some to to guidance about is growth Thanks. XXXX moving the with alluded call, points as comments you EPS off everybody. you what positive the you believe [but] just XXXX could to $X.XX jump updated the on the for the viewed in this morning, $XX.XX, as just headwinds $X.XX long-term confirm the EPS updated COVID with for as when last that quarterly jump-off that a I guidance thinking you XXXX proper built when the $XX.XX potential XXXX? XX% year Thanks. initial XXXX in Good still range. point conference increase

question, the for Steve. Thanks

the quarter, that earnings on of we power was earnings best felt XXXX. the as target $XX.XX off normalized know, to beginning in we growth represented or for last discussed confident level know, we level ability XX% that in you to our deliver And XX% You XXXX. of remain

we premature You off do power any core a earnings good know, normalized time, about but point. very point at it's jumping our is or too this get earnings the with representing really XXXX to feel specific $XX.XX in more associated

the So, for thank you question.

Next question, please.

to the from go go Fidel, we'll Mr. Stephens. of ahead. Next, line Fidel Scott please

your the over rebates, expectations? Medicaid the relative of about quarter to and government the impact how first risk First how an trended the if what was just Had the of experience and in margin year? on then long-term rated give a us Medicaid, thanks you quarter, And had from the Medicaid course impact could from thinking good the corridors you're that question on morning. tempo below Hi, the I'm the and update just the bit interested just and was business rebates a but from assuming. target, obviously

you going So, over – course trend of Thanks. the that's the year? thinking how about think just that to

for you thank the question. No, Sure.

performing Medicaid, know, Medicaid well. You certainly is

that the do very, forthright You sound] know, very about end maybe to within we margin believe that great Medicare, and about have much long-term very impacted and potential the we And, good membership ranges. for the improving talked we've the And are future think we've Medicare know, DRG trajectory as The risk schedule but ranges, our in expect earnings state Medicare. Medicare Medicaid. payment significant just the elevated factors to you certainly a Feel the XXXX of Medicare you reduction revenue bump, about the in transient. mostly for call The of X.XX% business, [naturally from our we last we reasons know, good suppressed Medicare, below line which know, very already XX%, continued impacting the appropriate our received fee very, you On business. is target first very have business, we partners. slightly that rates finished those target of be quarter And we and feel impacting. the increases largely the about of that COVID January block that associated did identified. population. growth XXXX aspects But COVID margin all is in with have cost, really utilization, the all senior

maybe comment business? little bit a Can about ask the Medicaid to just Felicia

you. Thank

continuing You know, is Medicaid our perform to well. business

respectful that working sound closely the with very been the actuarially pandemic, very going the but are We respect in that view challenging are time states of we've that with through light to are very a we're long-term. a taking our receiving sure them rates to and make

XX% in are with already that of have conversations in the half right If roughly renew of and our you now, now. to second renewed point states know, at respect with we states the where our rates, engaged year we're them a

We but that we you the needs sure You this rates, of and an know, closely process. as been the really very work know, mindful to that pandemic have follow. partners actuarially consequences to very of achieve is the iterative with make recovery our state sound

XXXX, during we we'll margin So, work Thank able target very about as partners optimistic within to deliver performance to X% we being our about time. are this think continue range state And to of our with you. X%. closely

as to constructive Felicia. feel as things lot heard, I shared And overall very of COVID-XX, the those good really you with feel you that think about about we very our Thanks, And a but transient are John businesses. businesses. core related

Next question, please.

Next, Citi. of we'll Mr. ahead. go line please go Ralph the Giacobbe to from Giacobbe,

delayed Gail, until morning. decisions Thanks, you mentioned the XXXX.

give is gain versus your commercial? if a much any maybe And more to just First, us book grabs up much just of maybe XXXX XXXX share your then were season typical just a to insights saying opportunity and out how how within clarify can Thanks. on wanted for year, you and year broadly, selling XXXX? you going of or is for sense that for XXXX the this

question, Thanks Sure. the Ralph. for

Pete the commercial Let market. about your or clarify specifics. talk to me just answer And I'll ask

for XXXX referring prepared a to this I national my comments, to accounts lot in XXXX. of from really individuals selling Now was where year differed season

individuals I but you market, terms you in as commercial of ever, why bit had winning, team was and it I innovation about that still, really most we for, successful selling one more a comment our products Pete, little the his they don't and to brought mentioned, the credit of focus seasons Pete market? the However, know, and but the of pipeline,

Yeah, thanks that quarter. Ralph. with mentioned pleased We continuing. thanks. question, me, really same the sequential the quarter, first landed of XXX,XXX really how past for growth And nice in dynamics enrollment are the the saw were Thanks, excuse in Gail. the in We I

exceed in is insured quarter, the First execution And losses. our continue our as of from nice an again, perspective, to Gail was you all, our what noted, sales year fully see, this really know, growth. to

Our local grew group nicely, business sequentially.

If what most growth execution headwind, know, forward, to see could we more going confident impacts, the affect a a you associated economy economic in-group our sort business. And good with we're our as not if change our continue growth our strong. was is strong, that I very specifically But were dynamics and COVID, have like the portfolio accelerate. positioning you said, going fee-based our is Gail for been very again, and of feel about our that of really to we're improve, to, say, bit our products, see choice continue, the

season? developing season. quick on really Ralph is And this question a your at just So, really early the what we're, in comment the it's other about national selling It's accounts stage.

call get better We little overall, really are And well-positioned. some I you to insight. second quarter we the as a feel where opportunities. we'll expanded seeing have we certainly bit update But

been quarter. attrition quite through the in-group is the resonating have Biggest that I think offerings first our came well. Pete now just issue for right in

question, please. Next

line George Bank. please the ahead. Hill, Mr. go Deutsche to Hill go we'll of Next, from

morning, and thanks question. good Hey, for the taking

results. PBM in to was press change related things out highlighted guys the of business, you of bit adjustment? and positivity and I in selling integrated the impact business guess, selling and of medical in that what could the Thanks. little about timing more integrated of the seeing One the impact period medical pharmacy you're on you the talk a the as release pharmacy of of the the and

I’m you. going that. Thank to ask address Pete to

your thanks Yeah, question. for

of And of terms we're know, value pharmacy upper your proposition. hesitancy expect. the progress integrated a of to year we this, market, with You I'm said, as of you'd because team especially PBMs, see very, transitioning, very the see to pleased did beginning of the and the COVID, in is the on That we closely beginning you working transition last we activity. end see but, are point, on know, bit and more very to mentioned

I beginning think down we good market, to signs. see definitely are

hesitancy, bit we And win there's but Our up. pickup upper the a activity the market, seeing is is on said, of down as end market still I for RFP activity] improving are the rate XXXX. of and [RFP at picking

We selling the season right of middle are in that now.

better finalist would national the said, we'll it and early Gail weeks like as lot relates wins it's, we're season, several a it's in upper of are the months, to relates end opportunities. to and different the XXXX over I'd presentations, We next have I across on selling several of and XXXX. into say, on it as just still, our visibility headed the say market

you. Thank

question, Next please.

go to Next, from we'll the Jones, ahead. Robert go please Jones Mr. Sachs. Goldman line of

I gains And question. a hoping call little in the adjustment. operating press strong. you the guess for do there. I in did maybe period maybe Thanks with Ingenio, could stick give I more around bit drivers the were was an know, the quarter think relatively just you No, out out of to you release,

we the as sure make to for the year. understood Thanks. that we about Ingenio of wanted balance think Just modeling

Thanks for very the question. much

we've that sort know, it's performing the been overall, the Ingenio on expectations, and You and again, of extremely growth has strong well, based within Ingenio work our group on had.

called that it specialty the In one-time adjustment up terms is really of our in out, was pricing. true a

to bullish margin That's So, being feel it good target. sustainable. X.X% we very a and about in on still basis, X% rate a run

think you as really key drivers. overall, that, those the about are So,

I has stride in hit really its of our business. think terms Ingenio

somewhat elevated, as pandemic the the part our were because artificially results soon One and here was pandemic, the relaxed I the refill of first we to think important that's in provision is] to intensifying of elevated, everyone things XXXX keep mind [that that as quarter knows.

the So quarter a earnings first we of from in resulted of that into – forward the pull second XXXX.

gives the that question. looking you're hopefully for. So, insight Thanks the that you for

of line ahead. to from we'll go Nephron. Next, Raskin, the Raskin Mr. go please Josh

either you deferred demand morning. resulting Are know year? higher from, an you seeing Good thanks. evidence pent-up acuity in last utilization of care or any increase from Hi,

Josh. you, Thank

still it's in just noticeable I shift to a any early see bit pent-up and demand. utilization think non-COVID

stay were highest to And I have Arkansas in has to were markets. and Q&A levels were of big that at Connecticut seeing know, are material between I like home utilization folks you the some to XXXX, vaccination it rates you in our comment We those know the of the a made earlier really part Texas session, of in get be care of a And the appear lower. some there's and with a bit able think difference states not relaxed. when that, do rules to lot access Maine

approach, we prudent. know, in is this a are still know, appropriate at monitoring variables. and point cautious outlook original all you believe taking you utilization our we that the very certainly But time, So, for

question, Next please.

we'll Mr. the of Next, from to Goldwasser Ricky line ahead. go Morgan go Stanley. please Goldwasser,

Yeah. morning. Hi, good

what quarter the loaded should Gail, SG&A. doing of K I with a how investments, sort of you're rest versus hear on question to on is internal clearly think the investment, and in high, Blackstone we you your more as the year? the in mean bit side investments, little enterprise. When we was love relates you I my these sort think specific digital about of So, the digital, about about would from excited SG&A reflecting investment then that? mean, and relationship a most as talked makes about we Health the to about about in front is end perspective, everything of think the that these And kind like

experience, enhance and the know a beginning by invest bit really, consumer that answering out as Pete drive your continue we but your tools. question question, you our the and capabilities mobile you know, automation I'll that digital lot of over to aspect a facing of and to in Health greater it new talk K Thank customer start turn to you, to Ricky. little about more

partners. way know, we're distribution on our business You we focused do improving with the

your new to And most preset for packages. well-being enable a solutions relevant offers simplified them and of we're needs. digital broker seamlessly. distribution sell Make our it to our purchase clinical suite a standardizing portal partners, platform have to easier products We the and and employers understand to the that

impacting the So, I give capabilities company and aspect that you aspect and digital business. show are your those examples the every of investments to of just every digital

focused system consolidation for with here know, You that's the on last doing also been years. we've our that and several work –

talk expect year. accelerate know with continued year our know, spending in little K that, with in the first revenue core as growth over latter a special but All be bit of ACA. With to Carolina we spending accelerates, go drive in terms for left little there's throughout ratio we you about still I'll have and expectations. when but to order our the will it some The goals the the to of to with go bit we spending, enrollment to top In down Medicaid on obviously, of quarter, be a more of did that will a the you a North spending this here accordingly, Health. the live done specifically achieve businesses the we in half turn lot Medicaid Pete some SG&A line

of what of Yeah, Thanks K acceleration saying you digital our Gail the importance John. about on thanks. with just know, was a the partnerships. earlier offerings product lot, And, one accelerate off And our care is jump effective more with a Blackstone another of really the and I'll and AI of of approach an drive help example and use differentiated where to really we're these consumer digital strong partnerships experience. to of efficient partnership developing

creating with and or us care a place or really that it as at Specifically, digital to access it employer consumer, enabled product this And to triage acute the text, videos time. the basic at via, Gail to occur physician. It's to really care to care the where helps can more options It's in-person right to as is chat, facilitate Anthem this or offer experience direct all right direct helping needs said as it earlier, care needed, this. to right door care upon if first needs the builds ensure direct really partnership, front and healthcare. relates

that this yes, to of greater helps bring another efficiency members. better example partnership a so, our And consumer experience and a great is just

consumer excited you long-term investments at And is Ricky, our about address be care. digitally to the Day, OS an how virtual we wanted this digital I question and that Health at are level important what well Investor platform we for asked and investing drive I level, to business about I transform think in our the And which investments we do is excited health, the to a operating think should pieces also with model platform. Plus, but as really, providers at both going in them, about? frankly, really shared Because quite investments all transformation. what we're of fundamentally directly. care that which I growth heavily work of you we're of guess as our

again, use comments by participating creation So the time. to data us the the around goes earlier value surrounded in of back that of that a that, all locked had my we've long for

So, be ability AI. to predictive with

businesses, is XX% our we growth in Investor way is, that Day. drive goal business, this again, get long-term committed our again to and XX% shared at know, to our this transformation So, our as out all digital I'm that's final To that the sort core. put and of you about excited on point said, I think how across John we the expense the drives investments, about really a the ratio to business is – are to of think administrative we to

the for again, Thanks of a thanks and platform that, health. digital initiatives a model transformation So, about it's but I lot embedded question. There's a business question. the think for inside of for fundamentally,

Next question, please.

America. to line go ahead. Bank Mr. Kevin please Fischbeck, go from the we'll Fischbeck of Next, of

thanks. Great,

you guidance, to and race the it So the moving seemed like but guys raised half of then understand and sequestration. trying you to the pieces because due the by was beat then beat,

COVID to the doesn't better on headwind, the an performing was And then be than that you offset core expected. view your change business to the that numbers. seem said so didn't You

to if elaborate raise, better business of I in trying more core bit in just of rest all than guess a that just know year? the So, in expected, exactly, that, larger reconcile little better a the raise, say you coming than know, through than leading to driving you maybe is came a expected. And you what expected, when you why better coming the it's isn't

out, are Thank parts as associated there you the guidance Kevin. many for And, the with the pointed question, for year. you moving

COVID then wave as pointed the also increase with quarter vaccine so And all have as First month ahead of anticipated. also, and were out, that been of the we $X.XX $XX $XX And prolonged another $X.XX And found administration required sequestration of that, $X.XX just out more or of rates extension I've upside. we're the estimates. about adds results ago, you of fourth to those. of we a those consensus to from

we up shareholders obviously delivering that You to with the upside the to core raising with know, all-in the, guidance, comfortable and you $XX.XX. performance, very feel know, back

performance, In lot things. terms is of a of core performance you know, core

know, Medicaid, all you Diversified You doing growth the core and we've we've better in know, very those in in commercial, And, know, it's in Group, expected very, areas. Ingenio, Business they’re than you all great growth, seen seen well. performance in

You know, demand, we on pent-up costs investment the the at cost, have medical the a about feel we of spending. as some look incurred, SG&A the of the that. we plus that expectation efficiencies been after out run And basis pull rate good

about and the very well You know, future holds. bullish so are how we we're really positioned what

accordingly. thank guidance But the question. raised you for we've So,

question, please. Next

Thank you.

line Rhyee of to we'll from ahead. Mr. Cowen. Our please go next the Charles go question, Rhyee,

question. for the taking thanks Yeah,

about would retailer, and about, you're more back, a Gail, how from Any maybe be of new a drivers you be kind to going earlier helpful? with of the that social national it's are and comment talked onsite Anthem know, Beacon. you service, live particularly trying is What a talking major talking like I kind with works? And can a kind delivered talking of retail, go for it about for little were about, partnership you you service there programs, the know, particularly employers? were actually you talk of of work – still about that economics who’s model, You transitioning of paying health about through the maybe kind bit you because that an for is a commentary a wanted doing, lot Beacon and to made

Yes. the Charles. Thanks for question,

clarify a model what little that the me building. innovative Let we're bit about

been think we've particularly something our things learned, social essentials to program program One the huge is always strategy. in has health. employees, a is all large product call the drivers have embedded population. within of learned employee that year; people. the what to connect we the Anthem’s with pandemic our way, all self, to that would own really this to that and on we caregivers, in especially built specific to quite of employees. is people's The a productivity. their the their of on done community environment health this. quite health all work actually on things the with help of access own frankly, needs come who That's, needs, innovative own weigh those at social them, both an had issues full these national to affect we've of Anthem, And impact offering, support that help benefit that into needs, in working obviously Beacon the employers that impact way like and We've services, work and a behavioral ability And of core that of program that we the be with frankly, an their the employee those during heavily I And their retailer a support as a I is employer, is efforts it think basically,

this is particularly coordinators programs. and does in transportation. to food, has no saw it accounts. product will resource large in something we've very very we we innovative on-site So, one else think, our our, that a done built housing, help our believe market This product. It that resonate include with innovative, government again, the much national need, It's with we

place for understood consumers the that individuals, – that into lot we is a as the we programs well. our government not that think markets, issues put programs put I individuals commercial affect in affect that what's our in in well of

our hope what and from it all to taking learned so we've markets And across markets. those we're of scale

to We as employers a great think opportunity really it's we question. they back bring physical think workplace. great for solution approach. into a again, different So, their a And employees offer it's a the innovative

So, thanks very much the question. for

please. question, Next

For go the from Cottrell, Rob Cottrell the line of go Cleveland last ahead. question, please we'll to Research. Mr.

today. Hi, Curious it good to morning. focused the on Thanks that's on that. the Medicare population if for expand primarily opportunity like color there's MyNEXUS, sounds

and come home to may the care? know, partnership increased from, then members, exposure Blue based also commercial and that Medicaid you So, opportunities any

our I'll be little part for know, Felicia start thanks MyNEXUS, a as question. and MyNEXUS bit then business the will has color ask with she provide of Well, I’ll diversified to you because closely of worked group.

been great You a strategy providers in we strategy with shared extensive fit managing our and whole including providers, this home care, And know, at that you is Anthem services. multi-care example Investor our national I XX, think a MyNEXUS of one, really providing of X around an person Day, within and integrated expertise. And has offers particular, high quality. top of network the in always around MyNEXUS that again,

are again, really important components of So it. those

know, authorization is time you all about value. we the, visitation MyNEXUS As those to in-home we things, them and was with at we and look extensively, the worked that had great care, saw what

driving Felicia value is we And service. the great it own quite model nice a book Medicare across see opportunities to population. this obviously again, is opportunities our our of of the Today, that this Advantage well. that members. predominantly it's I’ll broader ask on to business, we are works comment think we So, plans, returns. because do of valued do health inside seen we've And a because maybe But example think offer other to highly

So Felicia?

this question, ability opportunity be valuable We found see the this Advantage certainly a a to Medicare other Yes, a from at say parts hit to that I we And very thank Gail But us government across perspective. look it for scale of well. business to asset will you as take Rob. for the well.

for As you business. duals for know, our government a key populations continued areas will go in forward. be us opportunity look platform we growth focus as our a at us take when for are the we [Indiscernible]

we as but also example us have blue Medicaid. that business in opportunity partnerships the leverage of So an and is government across this an this Medicare, well internally, for to as

that question. So very thank you much for

palliative, Felicia. it actually we integrated combining And would and the thanks, of really One for think that because solutions, a see shouldn't I other thing you opportunity health home as just notice post MyNEXUS, acute, behavioral. that standalone

So, the an ability if Thank do, home, you and about you again, of question. opportunity. businesses our deeper think some this provides, the be integrative what to like other again, Aspire, our for in we

please. question, Next

our final question. And that was

Thank you questions. are with very I done we much. our guess

So, that for thank we for of today. call the us appreciate want had all you joining all of morning. questions And the this I to

pandemic can this see, solid and this provide continuing support shown together. heard throughout our as you As combat communities to resources in growth to we pandemic critical Anthem has while

the on our us growth stakeholders. and to ability performance gives on Our our deliver all in confidence quarter our to first future capitalize of prospects in commitment

the XX,XXX do Our all one and each future. hard vision, work success than thank speaking that interest and our would values. I more to them our in day. possible to and they for every I not and Thank be mission, want forward each you exemplify look in without And associates of you dedication and with Anthem, of for every who your the

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