Elevance Health (ELV) 21 Jul 212021 Q2 Earnings call transcript

Thank you for standing by and welcome to Anthem's Second Quarter Earnings Conference Call. [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.

Good morning and welcome to Anthem's second quarter 2021 earnings call. Peter Vice on Investor President Division; call John our our Health Tanal, us and and and Felicia Steve our Pharmacy Jeff Gallina, morning of Alter, our this are CFO; Division Norwood, is President President Specialty Businesses. Government Relations of with CEO; Commercial of This and President Business Business and Haytaian, Solutions Gail of Boudreaux, President strategic quarter, the begin brief with and recent commitment progress Anthem's call our the will Gail discussion to against the initiatives mission. on close of its in will detail. our John discuss financials then results and outlook greater After our Q&A. team be available prepared for remarks, the will

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

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

lifetime stakeholders, and against our share strategy on our report $X.XX transform with call. XXXX Good we while our our expectations deliver drive morning second new we of industry's to integrate data and ahead health. pandemic. that organization ongoing system, continue thank of across earnings strong reported actionable in continued the leveraging earnings In the from business I'm one you the sets of which COVID-XX of today trusted in a to progress This digital fueled digital is expand to the to and significant largest our of our considerable and while for This benefits to connections pursuit the making $X.XX, platform. morning, contract to earnings to government per health. produced better associated quarter uncertainties Anthem growth, healthcare quarter, expansion for by long-term our second despite insights quarter per transformation our partner commitments in pleased joining Anthem's membership us second continued platform, share GAAP a adjusted company health improves

area Medicare the front, the members X.X% an complex and second with or eligible new dual to membership to grow this optimize the XX.X Medicaid delivery And immense plans chronic key members, XXX,XXX the year-over-year we On million And delivering care Through end ended in care with since Advantage health and as integrated organization the Advantage organization. MMM opportunity continue up X.X largest benefits the Medicare as MMM we strategic organic plan MMM Advantage X.X and only of focus acquisition leading a in strong quarter, Puerto reflecting of of quarter first its million the strong for for remains the Puerto see business. and growth rated has needs. Medicare businesses. the well our second model, Rico also star Rico's record established of is in quality operates our seniors a it's territory. plan. track largest and core

lives city builds This public make our Emblem New Advantage as the major have a honored Medicare largest Yorkers Advantage the to to York. selected the significantly share been will who We're opportunity was of city. business as one and to Health. partnership of City's last contract our Medicare retirees retirees workers, in last what New a relationship New increase serve serve for week, group worked And awarded the York with New than York their XX on market year were decade. to group more well we and the in Medicare material families serving Just the in procurements of hard in of difference Anthem's

Advantage homes, improved on for quarter, hospital XXX,XXX admissions, members of existing including across and acquisition deepen readmissions myNEXUS our care also Medicare continuity a personalized comfort advancing facilitating and health the during of care to ER In members X and states, MyNEXUS MyNEXUS their improves the XX in than grow digitally second organization strategy more addition that to our Anthem's members. timely, leading Advantage. more than to we Anthem Medicare enabled by for Advantage optimizes MMM, home outcomes closed is the reduced capabilities and million visits. Medicare of

future supporting strategy home risk furthers of in its Advantage, to expansion contracts deliver to diversified based addition Medicare group's on the to care. our myNEXUS In growth business

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improve right that predictive to medical, of machine data, rich us the B based medical and the underscoring our the and across on customized true bundles to Anthem Whole partnerships the Across us articulated targets gives of while long-term deliver this the our continue analytic business In with membership selected pharmacy, Anthem's become products, our already serving commercial alliance and by traction profit confidence for Connection, nearly plan of to XX% we which health for in Blue, gap health. This our plan business, Medicaid validates base Blue algorithms differentiator invest fee lab IngenioRx proprietary improving Blue platform beneficiaries fee drivers learning to we Healthy risk commercial that and choice our specialty marketplace. our are success leveraging Health of businesses, needs. This brand. great allow pharmacy solutions and more through their own our commitment we modeling including in and together plan; health extend healthy our the in individualized less essence we we to of our Day, by success approach population. offerings matters each chose narrowing increasingly the business tailor a apply us our Analyst deploying based what and than outcomes. commercial care social at demonstrating We ecosystem are integrated who automation to selling core solutions connections in we has to North The can between member and Carolina, facing tools. in recent in enables innovate in leading the largest comprehensive connect consumers platform The what to of members and making integration. of is our and provider consumer ways. a in we're our IngenioRx, managed digital through Our business for our are continue we the power power are seeing more to seeing these building

consumers, experience, While creating the we efforts to providers platform employers. more are healthcare connected innings, simplify a in still and while early our resonating are powerful and the with clearly

purchased personalized health we the including tailored preferred physician fold access members like price markets, based key feature, For through them to are five and digital functionality our is our provides Sydney actively and XX meaningful, to example, health tools across members by playing omni care a experience of accounts conductivity a experience also national deepening compared registered to channel process. facility In quarter, for the Sydney which in increase are second penetration platform. end time to to in end markets expand superior recommendations provider improving commercial engagement transparency, Digital care legacy Sydney to surgical real using telephonic to for role enablement over for enhance multiple actionable treatments, the coaches and data. value In continue and find the guide Medicaid saw XX% access access seeking a our Medicaid. and its and

enabler collaboration data today. and physicians XX,XXX to provider deeper health enable are costs HealthOS our significant technologies workflow. invest drive and insights better part to many will building care insights care as deeper plug and our via existing new improve in their disparate a scale leverage our May, continue complexity. star bi scores. HealthOS to decisions. value of is partners in Epic health reduce data Epic gain into and and way information, driven providers siloed We that coordinators partnership to paving we based care enhanced insights allows of connects technology at OS of In platform. value and connections help directional the More exchange with less announced based efforts data a secure HealthOS to to to This XXX,XXX data driven HEDIS than into connection connected of

XXX discussions healthcare partnerships. nearly in with for and provider companies other path have through of systems our XXXX are the on end We similar glide information

efforts to improve to aligned health these the of All Anthem's of purpose, humanity.

needs that promote communities, purpose Our associates, the based members community to of interventions our health health our related health supports and by and social strategy data addressing evidence equity.

Capital, healthy the the purpose living companies for I'm corporate top was communities recently Our improving of, recognition commitment this example, Anthem to families platform leading particularly US of for the by and proud one and economy. earned supporting stakeholder Just performance that has named in measuring XXX

industry, among healthcare on the number We XX in list. number ranking our are leader overall one and the providers,

largest organization XXXX. XX the as of minded of In Anthem Light, America to one recently in the addition, volunteer most recognized service, Points world's community dedicated for companies

mission, health incentives quarter, across Anthem health As can. of data connections this change the providers, we others for takes dedicated assets and fundamentally following achievements platform humanity researchers, on unique care partnerships, health. making scientists, our to positive our the drive cognizant communities, we're connections and aligned ways that and to Anthem improving our broader that only people, our improving while embracing and digital in is through these data reflect

roots I'll uniquely position performance well the turn John? greater call now outlook largest discuss communities, to have our of We in our to local in both and our detail. sets, over to industry's and the John mission. deep against financial which deliver data us

$X.XX to per adjusted of good per line. you, this the of And and $X.XX. results GAAP earnings everyone quarter share included that second earnings share we on Thank reported Gail. Earlier morning morning,

Another our all financial in while pandemic. strong ongoing delivered in our the on COVID-XX commitments, while navigating each reinvesting quarter which we businesses, of

balance ended and results quarter the year-over-year, XXX,XXX in quarter XX.X of lives million with second million alone. the of or growth our X.X underscored growth enterprise. We X.X%, Second including resilience again of quarter members, the

in in and partially national our large we in insured growth by organically MMM, driven quarter Medicaid line offset of acquisition our attrition the businesses in Excluding by in our continued with accounts, grew fully the and expectations XXX,XXX based group by guidance. and group fee members commercial prior

quarter, XX% Medicaid quarter $XX.X top with the prior Medicare our basis; revenue HIF-adjusted premium quarter. grew driven end operating no closed strong impact billion of in XX% was revenue from membership higher with growth. grew the MMM, at the Growth on Second a which of line year by associated nearly over and

In also revenue, addition product of medical to ratio non-COVID proposition an resonate loss contributed for the by ended of cost prior cost related value year utilization XXX were tax while the quarter IngenioRx from costs developing that a level. top second note to Please press increase by driven unaffiliated our continues in that increases was to and total COVID grew normalized an and in revenue expected the marketplace. in compared Pharmacy non-COVID the the to our quarter, than basis cost quarter the above rate favorably is to XXXX. higher to to somewhat as expectations, a cover to our a costs insurance favorable inflation. favorable, of with a for health levels growth medical cost affiliated Relative line lesser points year were increase total slightly care. XX.X%; The expectations, benefit by offset driven repeal total partially extent, our ago, estimate the

a offset year, of evolution health, XXX our came Our decreased first SG&A repeal driven points ratio investments leverage support the XXX become XX.X%, SG&A strong by revenue year-over- expense decrease excluding partially basis of growth by to in the our enterprise. ongoing and the second of at ratio effect basis of points, our digital growth, in a quarter

an our in the second Turning debt capital sequentially XX.X%, debt The mature balance the quarter. the decrease ratio early to to with we to ended down in in repayment by at and a the XX.X% strong quarter. performance sheet; driven equity of par due of to year, of increase in our originally bottom August from scheduled quarter this first was line

ratio XX%. slightly We the end capital year, our below continue expect to to to debt

During the $XXX our average a common shares price $XXX.XX of we at X.X million stock repurchased quarter, for weighted million. approximately of

XX% outlook first myNEXUS, the of maintain with the the of days. modeling quarter, year. DCP resulting by to prudent figure full to both impact quarter reserves ending have which We June appropriate XX.X increasing close respect the claims, now quarter, an compared balances and claims payable calculation close billion, days year MMM the minimal payable, days our year-over- during and still to X.X repurchased the in in increased a of of purposes. increase of is posture on which for days $X.X We our an with XXth period with with average day X.X claims second X.X

decreasing just largely with payable days. claims and X.X the quarter by last days acquisitions, these was Excluding consistent

The continue Given result, quarter period was the basis, permitted of our driven establishing benefit billion net of And second the as into posture $X.X prudent deferral by X.Xx year favorable take not in the IRS. is quarter. was with year-to-date to we earnings continued was payments the flow quarter decline cash second half income. out $X.X from prior second by of billion in the back a development. of On tax COVID, normal or a Operating as net last year-on-year uncertainty X.Xx a income reserves. or the did cash flow associated the

$X.X for billion. increasing performance cash full half, solid to than in our first flow our greater we Given operating year the guidance are

cash well our a as quarter. depressed multi operating BlueCross flow the district scheduled As of this for and to timing certain as the the is year settlement payments, of the due litigation fourth reminder, BlueShield

midpoint than second outlook of our the underlying to raising with a share us moving earnings includes first core long-term our the are There evidenced greater the a business remain our for upside guidance, we're puts squarely year portion earnings generated at to $XX.XX, annual from for the The $XX.XX number by quarter. our half XX% to which our XX%. per guidance we per of of our which than the year, greater results. of adjusted full growth adjusted target Turning share revised of strong, the pieces in associated earnings fundamentals

of end plus or basis year-to-date performance strong ratio now full year the lower on our of expect costs, full Given medical loss in we guidance XX to points. our year XX% half medical minus

end half reinvestment Given expect costs XX of plus back in upper our ratio full of XX.X% year for basis in half and the business the in the year, prior or new startup range first accelerated in year the of to guidance contracts now half, the minus points. we SG&A our

rate to associated effective contract group year we for guidance. by first performance the line city for earnings the our carried guidance, and strong for second of which startup more program, cost award both which investment non-operating upwardly also this and portfolio our have into outlook with in in Advantage Medicaid the In offset the increased than expect delusion two quarters, of in XXXX. Medicare of we tax income Ohio the year, revised now in half will absorb our live New go of alternative context item outperformance our entirely We in our York guidance. entry given the in the the higher have is investment our not forward The full

the potential COVID taken could in back new in light We half cautious related rate, combination variants, of coupled with slightly result have vaccination also cost. a slowing for COVID view of year, a higher more a the of the that

both results contribute XXXX meaningfully in are to partial expected to and year Our much MMM financial and guidance which a of our beyond. of more myNEXUS, also includes

our approximately now operating revenue XX.X noted to members. we in release, to XXXX. with of billion year expect press As in to $XXX the generate And end million XX.X

first dilutive is it XXXX, on operations. Advantage group while are and to you of wins year large comment in Finally, quantitatively that generally remind we the Medicaid to Medicare premature contracts want full

Advantage We seven the cost our City with on well New line are contract wins. of group new compelling capital. excess our expect And sight ROI in of year the a York, have our to returns business recent towards our a term new Medicare of strong over of of

percent these division pleased were become an to even membership will our while we our of government revenues closing, of in reinvesting of percentage with from business two Additionally, and In wins, our quarter our deliver another larger growth solid totals. enterprise.

well all We of our positioned remains inward continue grow to in of each growth. outward for businesses, which services our and segments, in

Our evolve mix Advantage our Medicare continues business. government to the strategic and areas towards focus, of

service to segments. our In addition

prudently with solid We up position fundamentals, have And balance please momentum a to the underlying the questions. open with half in call strong entered operator, second that, sheet.

a from [Operator of line the Instructions] Bernstein. Wilkes we'll first question, For Lance to go

Yes, bit you quarter July? you trends any might lines saw particular, could you about in both distinction and how impact think the And in during utilization government with COVID the variant that? any commercial non-COVID? little a you could And between and talk maybe Delta seeing Thanks. and you're

for Good thank John. you morning, Lance. And question. This the is

So terms the overall slightly quarter, was utilization expectation. above normalized second of levels, slightly less of in utilization than our the the but

rate take the risk below and associated Medicare increases that the and baseline was was was that we highest certainly, were additional the they for and COVID slightly baseline, once issues company Medicaid above total all-in it basis in than X.XX% all-in line making projected. business When payments level of with think albeit had slightly by what on exceeded of were a baseline into of revenues, all on baseline, that you costs, really you Medicaid other utilization. score about line we commercial Advantage the deferred some so had actually So above the the And we business better existed. still then account

what guidance, data little each as days prepared and a much quarter a for don't obviously we both third just and as comments, mid quarter reminder, better. quarter thought very baseline the the ago, se. quarter certification pre bit above at to the fourth our monitoring the in preop and just the July, as all we consistent per rest do said, I expect But we really we're with of year. you be look XX So provide And

consistent on July tracking seen very based expectations. those is far, everything So we've so with

Lance. you, thank So

to of Next, we'll Wolfe Lake line the from go Justin Research.

Thanks. you on York, then being it can And New re-determinations from that know, update ahead of side; A you just XXXX how like rolling on an XXXX to from, and much us looking you questions talked you've couple from as to a big XXX,XXX delayed? couple contract there helpful you gotten what might Medicare membership that look Advantage Thanks. I think gotten members. you you think one, government the of give ballpark estimate Is a city the then kind of you've about And would about how beyond. internet be pick this be was up? the was on might on for off

point New as with us very at our Day because these honored we first, we of And our in in Well, gives then the Investor shared and on have clients the goal business continue to is This talking really serving again I a over that question, This think, existing contract great strategy we think Advantage, everyone Great. several strategy. our for the off. sites state Medicare the our City of contract proof been about for awarded it them convert important the that for goal the opportunity Anthem about I'll city tick get to of York for state. been with proof the two the really, a is to I group Medicaid points particular. years. strong, a we've that last in deeper I think, our will Thanks members to execute also questions we're on share proof on serve. the point start each so and really we to York New Felicia some thanks first should the try of in Justin; for insights her

in than actually little been I York; XX think would we years. have vendor the them we've five past New a years. of helpful management served city for And their be more background on the bit of medical

you of health if really a given that, strong So needs. members understanding think their the about good us and it's really

great the So really us them to provide group of strategic opportunity it was offering MA. for sort a and

of mentioned so we're operations. in contracts back are As dilutive prepared year the given in the of startup the to noted, past a 'XX. we going I this and revenue, ready absorbing we've transition as generally And as the as first of my we've to in go in that be get contracts in year, that size group half you. full tend no And with guidance of we're remarks that live January costs MA. diluted The members to these incur offsetting

good management the working to the relationships, think is scores care partner reflect I into value other medical we management these issues, we insight collect particularly provider and obviously some need and as members, based obviously but data to with have vendor members up news our risk Emblem. medical also the ramp and the acuity our

of membership, in And means think, of market. we variability going to a compelling positive we in really it seven us it'll in share earnings And call, our I'll early XXX,XXX lives. guidance it'll year. bit little as a clearly, and little up address have this terms a XXXX, and year expected end us really on just to different positive XXX,XXX time, the that there's over and ROI. 'XX, and to overall we'll We're it's year. close impact contract, the a again, that And a some think that for it's we a lives, and over section, that but this and strong of in But really ahead depth about gives we beginning is In that the that, at open the But because breadth and that overall. early things. be choice as there be the this in to what be do enrollment later buy to think we'll believe we at

your I'm I going of second Felicia that, question, re-verification. was about the Medicaid part to with to which ask guess, and address So

morning, good So Justin.

ended members, second to when terms was at up quarter of just membership our organic of it first certainly due the small the we acquisitions XXXX, about you the XXX,XXX re-verifications. take so that Medicaid Florida is as the quarter in Our increase well. XXX,XXX of include increase you MMM, predominantly all-in, suspension our to had in at look terms Medicaid enrollment of our continued growth, X.X when million tuck-in couple a of market compared And in a

As helping our with guidance we through end from we assumes continue XXXX. closely members, feel renewed our about emergency health that Biden that of to on timeline. very hold you. to very re-verifications what continue remain look them of public as the re-verifications With our on partners, we it to administration the close still means. we're said, end that work with going state the the stay the understand And year. to Thank And yesterday, that to and good

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

any with about selling seen? you standing be looks long some movement as on any Hi, to return give seem could your the everyone. that helping ASO of COVID if comment business you've know that. Thanks targeting for PBM you the the be Is relationships, just you as well were saw bright may trends? in customers; wonder question. like can the there I do you any scripts as us just of there and you vaccines of have I season. And spots quarter. I asked script provide Ingenio, acute to one the update know was it

inside Jeff Jeff? some thank business. Well, Jeff thanks, going to Ingenio you, very results and Alter AJ. happening comments with I'm think of questions. can on strongly we share But your ask the about you felt what's of our

AJ. lowest marketplace. that. then are Yes, it in so inside, thanks morning, integrated work to drug at that partners are Anthem beginning hold treatment good we businesses, to possible we, sure our for of the noticing external course best of And a make some costs. quarter, take do strong believe that the getting Thanks, our with as as well our was We the stories the our partners,

continuing And so, a the script as to that our we trajectory as in and growth earnings, we our enjoying volume, in on as nice see were membership. market, well resonate

So continue We of our an we're the to the for selling again, it's inside middle Medicare. Thanks and be the particularly strong businesses, advantage our labor value that see in government it trust segment season, commercial support resonating. and Medicaid is business. market story -- question. the and of the And for mid

Next, we'll go to from Rob the Research. line Cottrell Cleveland of

Hi, I could $XXX to be see will if wanted expected all-in the you thinking the expectation. relative to what year of good this you're million morning. kind COVID number previous quantify help

Thank you, good and Rob morning.

in So non-COVID as prior slightly of than lot come better than better in you cost moving higher than expected. headwind. tracking COVID COVID a expected And Non slightly with there's came that cost million Year-to-date, certainly noted the sorry. did guidance $XXX behind expected. was parts slightly estimate. COVID tracking. I'm

our the respect to cautious favorable obviously costs Yes. with amount the maintain a of there's still guidance. half the all-in bit prudent considerable But year, outlook if we first So of a back posture are uncertainty half. to COVID surrounding in not until in want our to a

headwind schedules, million COVID that appropriate, for to time, fee with So includes $XXX we believe $XXX is a risk the estimate majority the reasonable on of half an all-in context, scores, the increase administrative million in in point that net of estimate of And that of still all-in the impact is that's type the an back that Thank in so question. at with. the you think the a we the stay in this cost cost, our additional vaccination, year.

to similar what add year. we've John. guided and is consistent that's throughout Thanks, through very thing Only I'd the

JPMorgan. Gilson, the Lisa of go line to Next, we'll

several a we as maybe Hi. virtual utilization Good trend? ultimately, Care care color morning. just Thanks you and see virtual today how about digital care? us And, virtual very much. your more Gail, little Can give that well cost mentioned times as Initiative. do you you think impacting of as medical

for thanks Well, question, Lisa. the

we're really drive embedded with in shared a opening building platform couple as can comments, around platform, an things the in that where think we I we integrated particularly you, data. HealthOS I are, there our

So we're based to deep that minute. provider But our I'll starting that And to network, them we're a time. value virtual all it's enable give the across care our connected, think then care providers. care we're And trying point with our in with I address connecting using really insights. in best information every data

Investor So of but believe think And is really also only -- CPI the ability at get to not we core these that of the of the is combination about we're I component what care. at to virtual I to Day getting virtual, guess I'd saw, home all our sharing is made commitment, a We around you of that the say things. it. our trend

with and our So Sydney connecting providers data platform. again, based our through starting at that providing time, to consumers value enabling real

a next getting to enabled a that to greater point make that we past CPI, So heard the data the payment, our our over our accelerated really And quarter, we think they the the as critical there's in element those as take of so But getting and proof providers of the based right risk. is because Medicaid accelerate particularly about second we you just that year, the initiatives of this fundamentally, lot well opportunities CPI there with we see shared over consumers. about the can several our years. value trended decisions do engagement

as And part our how of time. offering So care, at together. care of where including patients, at of I I home again, just need part be that they they serve continuum of is care think, think providers right best to the the they come mix the we're all virtual

for thanks So question. the

only based think along with care I take about quite it's providers But they more more of providers consumers, about It's enabling get really core connecting our it's patients. a actually platform; confident and strategy. manage then comprehensive. It's to way can digital value element and of involved the not about the and feel care. it's those the risk that

So thanks again.

to of Next, Barclays. from go the line Steven we'll Valiquette

Thanks. Good morning, everyone.

question Just on a quick memberships.

around of about just and prepared the a and is economic favorably noise I I that impact payrolls. of plays around the the high environment. of out lives year. more trending membership unemployment the color decreasing leading level Thanks. on specialty or how fee for the to in on you base still sequentially economic there's just was by for of and mainly that I guess mechanics environment remarks, from as XXXX talked XXX,XXX So hear now guys to result sort sorts just know of as the commercial low rest lower progresses, you side enrollment curious all the

Well, thanks. We'll of commercial have part Pete outlook. that address as the

for And as came haven't suggested, we membership question. in the really as to, quarter fundamentally thanks themes again, changed. No, I mean, as in expected. you and Steve. you really alluded the And enrollment the Hey,

against. where on and control do and strong members I sales business I the fully how note XXX,XXX of growth large all, market over what lapses local group the we execute terms execution, on the year-to-date, good year-to-date in of and really exceeded our business, so individual our it to proud was we in performance performance team terms very we print, insured our our in of sequential have as can growth want am good saw that side First the saw again of local small in you

to business, to we the to a up pipe that to group see fee continue mean, in Yes, relates year, beginning continue over things that's light we a on and The I as QX, the open where change, but to put QX, XXXX. are question last see the open the we and As based are business, that pipe been then into to up fee had our it group your see economy. and beginning it changes some pressure us, bit. relates headed headwind, based on on in and

We visibility, relates the on of to business. side it our good as have XXXX, national some

will right we XXXX. of headed feel So do at growth of bit and the are little economy begin the of year It's capabilities, in sort of stands XXXX. on come season. upon improve, feeling you in early; see that we're the terms that the using back the team, our that into community into that execution about that as selling based I membership the of we're a the where engagement strongly now, the back good But to half with are middle end our to the continues focused tools broker to affordability

of really back And of tools, work effectiveness, a and goes I I our plus. are important; we've lot one, to they're really our our lapses. mean, ability want Pete consistent I because done products, whole think half last lot that that's sales year points to marketplace over just a our more is our that a I reiterate couple think we've than really sell and Pete. health. on the in been made, Thanks, resonating just to the focused a on

being showing And still the depth, again, based pleased something We're we've in this the while taken very closely consistent well those strong done approach. to we're keep as share national really our And a continue all to that year. in optimistic And fee business about so account watching. get about Pete our in growth markets well we're pipeline. trying And is deep in business; attrition, we've markets. that it's and our based our very with again, risk

So thanks question. for that

from go we'll the Stevens. to Next, of Vidal line Scott

Thanks. we way then, two fence, MA just there's growth morning. about clearly got On you're Hi, of thinking if ready EPS terms first, here XXXX. to to about City, where right dilution contracts still just number, thinking about just off just would increased think remodeling with you York jumping off jumping in XXXX. sort properly just as for interested; how as ring be are to point, in Medicaid, XXXX and proper talk New Ohio, try you've terms and about initial significant, I'm the guidance know the a thinking the specifically be prior rates. was But to about thanks, that good not point in potentially thinking of EPS and group that of just range you're model I the in

very, made, does the question. quarter company, however, Scott, completely core very for of in the new the you operating And first talk to is at $XX.XX, year. comment our you, we're really improving Thank it's the which throughout really time, with related in I this raise. with specificity that reflect very the the agree performance happy $X.XX guidance and And premature throughout about XXXX the to point

XXXX, ability to growth think remain specifics XX% of over I do deliver in though, the EPS we're our could XX% term. any without solid, fundamentals confident annual core business the our to I what is long that providing say, very for

that, said that. to work And of contracts don't do even these know exact will for lot too declare York. dilution city we of that the big New in to be a having on have XXXX, number members we actually that However, we in it's need more early in there as said, still the Gail

are And startup to to so position included in clarity get XXXX, 'XX. up cost the additional we comment and thank only we other cost second be cost, thought as The we'll is processes, closer for here I already structure on in the that a incurring question. various provide make that year. we expectations. for our our and you guidance then and set And of will half in have But our the

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

pandemic are around you increased to then would you. starting the kind since where DCP my has AduHelm taking Thank days. will timeframe I'm analysis that else coverage for on the could I over the back need depending DCP was what the question. slip sheet if asked was long and wondering pre looks to it's of it term XX you expect your balance of thanks I that the And nobody If down anywhere beginning like your your Hi, of visibility back high come thoughts XXs Good happen? like to AduHelm. to morning. in of X pandemic, do and the see from look where

record said So or thank to AduHelm. point, days, I quarter-over-quarter you. up we in payable, terms ton X flat really then dates this of And each ensure I'll every your accounting we I consistent. and of and and reserves, with every have But, like are I month, either first principles. that lot XX our very actuarial they of that starting this consistent uncertainties the environment. a generally associated each quarter and lot on essentially standards. a need methodologies to that, uncertainty question the unknowns the it was would address during pandemic. the calculations start that And claims have of entire said there said as depending and and with with And Having think need as a to accepted existed, you are

period a would back I our as over that bit conservative it time, line tried over time, to but that years, down. prudent so say the and be of extremely continue go have there's be we've long more could a would I And little to our of time, in over until, to and would time to DCPs few sight expect approach, and a into future. expect

also actually, claims a the us, and go submissions could structure impact days a Now impacting the income would better better simultaneously. auto our our payable reduce throughput. is better is We've cost well. without down payable faster, there digital. are lot things penny, and would done faster better includes statement to and be -- that the And the administrative days talked automatically and lot adjudication claims in by just that and claim and of improvement in a investment Well, other from about it would that be providers as investment rates, digital cleaner that

impacted go cetera. it et really a the cetera, short your just everyone not and really you rate But yes, we time I out do bit is et collars expect answer to a more the with question. and variables are little look of there because get do there's question think impact, number, then a current DCP. lot to as clarity have and a over we So that environment. Thank P&L carry say, the corridors down would you into for And to at also

you. Thank

available we've and guidance closely information recommendation a FDA the And our for others. them watching available, friends we've address recognize and guidance with over for all continue been as the a advanced had, new year, patients, disease it frankly question, drug your terms continues change. and to little choice we're evidence We've hope In the FDA as to of caregivers. their really from evaluate to becomes that is we're it want going of clinical disease, does the because that heartbreaking for to second it I the families, treatment quite monitoring there been has Anthem of their experts Alzheimer's development or

ensure relevant evidence for take that it So appreciate do drugs this really therapies available. most times We I think we clinically really and that can use it's and as all is members. will the our diligence the really, due appropriate the to become patience of

for you thank the So question.

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

higher guess expectations. just I John, it, Good you than I first our clarify I like was cost better think Maybe But morning. Thanks. said, commentary. sounded total but medical misheard cost overall, but the performance. wanting to

the sounds 'XX. So to wanted quantify just clarify But year. really want sounds you to don't it going then is startup that. like, question this there like for of back costs And dilution Scott's sort to

magnitude what help can absorbing those that in all in So Thanks. you around terms contracts? of you're of the at startup terms year costs this of for

for if Ralph, I the to because me anyone I did wasn't thank opportunity. question. you clarify, clear, asking take to And want then you appreciate this

given or for costs level, was of absence second Our a above than quarter quarter second total our Simultaneously, cost the better expectations. total baseline COVID. the for our the normalized were

So maybe that's where the is clarification necessary.

is through XXXX we're the of in reasons point for the specificity time. one parts the with So Since medical overall but quarter, have, on we then deal guidance. loss baseline on end And lot integration and go costs going which certainly and moving we're the startup low the range as of at better the well. City myNEXUS, really a very startup New some our do entities. financing that's of there's associated MMM expectations, in ratio to at York closed We and of of dollars not includes guidance this those costs costs, Ohio than for costs, our above cost,

terms well all all taken it's our that We have consideration. guidance. in been into through of And as GRS startup York Ohio; for costs as the $XX.XX New we've thought

the So thank question. for you

to we'll go from the Next, Fargo. Stephen line Baxter of Wells

Medicare one on thanks question. Advantage. to Hey, for the Wanted ask

they expectations the there is think revenue about, your of then keeping here have anything sense adjustment for be dynamics then is current mind your risk Thanks. should to revenue And ask for about of as in XXXX. any portfolio? how rest we XXXX. we MMM, wanted And about might get recovery a company in about the Just feeling versus

Felicia?

about how CMS they this we've XXXX received in with your address doing related where health in significant that our reflected Good to it's Based sure our payment. social payments morning at helping on health making members checking with on levels to the that wanted question. We've really that. thank how make outreach and are see of were they our they to that that you engaged feel for members we XXXX. sure most are in good meeting terms year, and that and doctors I analytics, see make care able And to similar lingering expectations. that and their care, we care This you know help our really are line to comfortable certainly they're engaging and vaccines, they And their feel risks with to getting close were especially to access in in members from XXXX. our includes and very that telehealth, gaps providers. are, where were we track visits believe home need, in

the making that. payments that the good they to appropriately. And to scores, you. in So be before, about are having sure are what I data, 'XX risk were we And we where said as sure Thank I feel similar coding accuracy will want make collecting we corrected around XXXX. just

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

about more ask could I little utilization if bit just Yes, about a patterns.

baseline? the in above correctly. risk normal utilization, understood Advantage the you issues, were you If of your of so second to score reference quarter, the forth I So procedures impact the elective sort the and in but Medicare were made that

Matt. Maybe help that answer I Thanks, can yes. Oh, question.

quarter, second of still was baseline, that in So ER saw below the baseline. utilization still inpatient the short we is

data is revenues. as they and various better health visits and seek doctor's checkups, were And the know, and our for on outpatient there members help things the need seniors part to risk annual their encourage the encouragement, maximize our to often see the we're above. their trying them at paying doctor, bit that when that to And to a However, us or like and collect information going to opportunity more that. you of care visits, it,

members saw it they So with And ensure we're seeing got to part the of actually our that our that, and that. strategy care was needed. consistent

thing So visits long think term. we that did a doctor's above for pretty see yes, the good baseline in And outpatient we and because quarter. happy we're about actually that's the

So hopefully, that helps.

into I highly population, to where with just vaccinated house cetera. to expected we've immunizations, again, we're Yes, have XXXX. been what level. visits doctor's Again, in particularly our comment, we preventative happened remember, you and et John's And them, care, because we encouraging to be the add Medicare, to looked at like come forecasting that above this a normalized

see it. while been some constraints So just as system. happen a back we're utilization that's that. we've to going again, of year surge you. an with the very what's don't to within We been shared, the because all baseline, of coming But of be important again, of the with part again, the we're prudent above consistent very the that's half of we And And the Delta about variant. gave that part guidance projecting

that clarify. helps So hopefully

go of we'll line Raskin Joshua the from Next, to Nephron Research.

Good Thanks. morning.

you employer guess and work is benefit So any your from of into from XXXX of preferences that and sell be you're other COVID curious into that groups. as any products of home, impacts my seeing increase terms on customer apps impact specific if goal employer things up the on group to that design, or I are any the popping I'm in of around commercial we number sort sort then question on preference would and individual new move

for the question, Josh. thanks Yes,

and we continue over associated behavioral proposition when And the behavioral we system around resonate, seeing that wins in were again, talking to being to important. on through, which that in selling focus the And navigate is focus of system. and health. And needs account that the that of our importantly, seventh affordability, COVID, our of are at we as are that growing. business, advocacy on of Investor then health seeing to marketplace, expect, I ease on and for the the national to We really we're really really we're about beginning as themes new and you'd advocacy, sensitized has also behavioral we're about the the these before, real out selling on that's and see we on been, issues, the we're affordability, greater also inning been with by, really and resume, those alluded last been of what the being become Day, around focus, accounts what are reasons, complexity selling is stated really use. existing we really especially coming through, about health behavioral focus I'm were into the employer see those to importance a need the spoke really for And encouraged months, and like advocacy, and about several that that come COVID, with And able issues are critically health. it talk value season,

to again, focused, we had of our also greater digital looking and addition about and it it some sell is hands is that, And really our yes, portfolio, of as the product providers, relates and previously we're about, data is our back to. Gail to things the then talked as our both in to point said members digital mentioned importantly, of digitization In something the providers at that that trying much way, in care to you leveraging really navigating point an but that and having a that of to what resonating that earlier relates also and business. important

Pete I'd I'll the care proof of particularly a seeing, really of Sydney and we've two job Thanks, Pete, everything. the point the and did sort that sales good describing only I is add, guess thing focused to the largest points. Total One And again, integration are about is our end You, overall everything. which which And between in behavioral really all done on, movers. Health, well Total it's integration. the we've and usually been with pharmacy first really been

major So the again, that think overall, the out in space. things are, Pete the are happening as and those I themes laid

So the question. thanks for

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

able of commercial follow a as we've above in commercial that coming just a baseline, I wanted the other parse because out is can core COVID figure thanks. Great, whether COVID and that simply, bit you or parse or kind whether utilization utilization out couple up commentary, been just of there's hearing as an costs. for on versus for well, kind kind little to companies from this of of Hi. pricing it's out year, as actual trend next you're to whether timing utilization whether and whether any far there's implications really issue

pricing in are we what and did COVID we We and Thanks, forward this it XXXX. pricing stay of model, and purposes. trend. COVID And pricing issue Kevin. Well, respect going weekly, relates did with pricing, said we price that about And we're Yes, said I'll you're we're going in to into moving before, sophisticated the a all non this on, head our just come We we're address talk we've through We in and it are take XXXX. lot seeing there to consideration as impacts to that. and tracking to right; do parts. disciplined pieces a XXXX. for this to about this the feel we really stuff, have good

COVID that terms non consideration. potential, into what electives, taken core who's the not that utilization, et in cetera. what, everything receiving the vaccination looking are So whether mentioned, you or variants, vaccines, upticks like being All of and rates population, is

public variation If are for geography, you and filings, there's product would we these our I you will the say by that individual there's pricing in at some COVID impacts, in look by see, of variation line. business, like

is prudent going complexity price So going very I to about being again, pricing forward. trend forward we're the be there to and we're and but it, think disciplined

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

to on How take benefit be the you morning. of it. would in here. for Gail it limiting about us factor entire book? then across the impact And to One second myNEXUS impact acquisition. What's you long you MA quantify MMM XXX,XXX about the of medical the maybe good Anthem there? on 'XX? And hi, what deploy prepared us Can for the members would Two on can MA cost? your Yes, the remark talked for half questions your quantify

questions. those you, Thank for Ricky

First MMM, integration also at Puerto of financing average you the the MMM costs. by all, certainly consolidated a tax cost, address I'll numbers, Rico of for has higher in the results rest And than rate look when it past US. on weighed year down our

been taken accretion really, that really into more to expected have those much And It's all in meaningful a contribution not there's so things be associated lot XXXX. terms for And XXXX. of of with its consideration. we in

parts of back there's back the and of integration cost. Gail. of I'll half for it had in and prior $XX.XX turn the 'XX, implementation into So stated as a lot guidance moving factored to With a They've lot all that, our I question, been already.

Yes, thanks.

the MyNEXUS, question and your of myNEXUS, outside is elements one of you. our of of both terms on I critical In Anthem. as really thank Anthem inside of strategy, shared

working So through of XXX,XXX it anthem, extensively. we've pretty deployed inside X serve But our there grow. you think plans integration opportunity. lives is about million clearly, more as We're we

some a in integration. the see home new have get this a And of care the opportunities, as we us and digital critical opportunity for also to

to also, clients Blue that our important. with business sell others, But that's think other group it's our to diversified work and extensively. really So part of strategy I strategy we

it see have we we of inside something know opportunity liked we the the them well, use obviously, to against -- I capabilities, So really XXX,XXX that's XXX grow them we Anthem, members. both and

we a And there's significant opportunity So our see really of businesses, then we opportunity grow as there Anthem more well. including across outside duals. business think our to secondarily, that

strategy. of parts this both one of hits So our kind

strategy. care, our cost going the our care of virtual of are critical to cost terms all elements value of home, those In of care, based of

is home really And a population. offering, so senior for part particularly again, the a having I strong important think, in

of an piece as it. that we having part important see of this So

So thanks for question. the

piece important building of block for an think an overall and us I it's our strategy. important

Deutsche go Hill George from For Bank. the the last line question, we'll of to

guess taking Hey, I partnerships, guys other the for provider have good Medicare morning, with as it guess organizations. Advantage talk based guys. And thanks about expand how and those you MA I to you about and grow to appetite how a question. as partnerships, kind have to of relates that the cover cost And can you business Agilant the what visibility? contain and you can faster, impacts you visibility? lives those run can costs talk and partnerships roll way and as ensure better -- out you as relationships and

with ask I have our tell we part is, value them based dense relationships, strategy Alter there And Jeff quarter. start. move stronger then want of I'll Well, risk more thanks think the we working again, question. providers markets to the that as context. Medicare for little our Advantage; and I'll in to in provide mean, want enablement deeper a to up we for go much to of

in can the picked markets do we help be are we goal And deep so serve. we we've is to partners think that that, us extremely again, --

just truly is we our integrate And things, overall that is hitting is capabilities, support so a it's HealthOS or so goal. we've to with have relationship, facing them aligned, their our do data whether partnership to part built, capabilities other the consumer cost the our with but help and systems also platform, shared, and there our not that data, myNEXUS it contracting connected the see then the capabilities we and really again, to of strong

grow is and an a it's piece see, of component value value these to really strategy. for get our deeper opportunity And proposition think I that. compelling again, actually with So and based we partners important our

you comments to additional I make if any know So, don't want about Jeff, that.

data ability build that network that believe the Medicare the partners, strong the in value the Agilant a Maybe that, we then world network. down to the effectively way have and I'll is distribute into and [Indiscernible] to say have and into their the best for it them so base our just bring SX,

and in in having we connect this do primary that care smaller to one So many, This way. expeditious to strategy one much opposed a of efficient more our enables a to to to as to Anthem practices. XXXXs one

us all you for question. thank for you of this So I'd that And thank for call. like to joining morning's

pandemic. you As Anthem throughout see, growth can solid this shown has

continue we communities together. our provide we support critical as While the to resources to pandemic combat and

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

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

conference this a recording XX, today, replay of after XX gentlemen, will through available XXXX. August AM be and for Ladies

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