Elevance Health (ELV) 19 Apr 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Elevance Health First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, where participants are encouraged to present a single question. [Operator Instructions] As a reminder, today's conference is being recorded.

I would now like to turn the conference over to the company's management. ahead. go Please

our call welcome call. and Investor Health's John Division. quarter Commercial the Carelon; of first our Peter Haytaian, Specialty And President our Good Norwood, President Health is to Steve earnings earnings on morning This Benefits us of Government and Morgan Gallina, Gail President Tanal, President XXXX Boudreaux, with morning this Benefits Kendrick, Elevance CEO; CFO; and are Felicia Health Vice of Relations. and of Division; President and

begin the Q&A. quarter prepared discuss our in will John our call Gail outlook discussion with After for then of and strategic remarks, a the the our will against and detail. brief financial team results recent will progress greater available initiatives. be

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

We will some making statements call. this forward-looking on also be

differ that many of cautioned These are the these control and filings to results today's the certain release Elevance subject expectations. are in to and beyond our our predict factors can from to uncertainties SEC. carefully which Listeners actual to risks of cause review We advise risk in and and generally press with are uncertainties, Health. discussed current the quarterly listeners statements materially risks difficult

I will now turn to Gail. the call over

serve partner we on consumers to discussed last to lifetime as are we're we health whole for Thanks, start investor that conference Elevance to share the Steve, focusing to XXXX is we become Today, month Health to health. and pleased morning, the a our privileged strong good off a execute trusted by at everyone. to strategy continue on

XX% for plan of and conference, in XXXX the compound a through through high-growth investing our road continue how to opportunities by share per our March to we by our optimizing organization businesses, provided XX% Carelon. At mature we investor adjusted earnings accelerating to map growth

earnings members, the we Medicaid. XX% per medical continued, Carelon's $X.XX. the share share all in XX%, grew XXX,XXX and and up fronts. gain XX.X earnings results with per respectively. quarter Medicare $X.XX progress demonstrate also GAAP and Commercial, of ended with Adjusted million nearly at quarter came year-over-year, quarter spread year-over-year First on operating in growth and XX% across revenue of momentum first approximately

health our The Given own and and momentum raised management the both we to well adjusted and our Carelon that businesses, of our XXXX. earnings conference Services will expansion continues is start strong growth scale per to and customers. outlook for at to in we our XXXX. for the care services our provides to be external investor it underway post-acute meaningfully to the year expand in plans with share than to the primary $XX.XX health Carelon contribute plans discussed scope greater of

working to beyond integration health are looking of solutions, seamless be solution post-acute in We develop management more to including home between and the post-acute now transitions extend future. all care the Medicare throughout we'll

Lifeline technology teams integration partner all scope mobile central across the the when emergency platform. crisis extended managing work dispatching Addiction Health as of coordinating as this that Suicide in of Mental entity the serving began serving XXX recently New month. Behavioral XXX Carelon Crisis leadership centers and the Jersey, Health the of Division in & at management, its this Jersey includes beginning to support New position Services crisis for The it unified and provide

for to in work are members our health our leveraging outcomes we improve Beyond XXX, proactively. of support expertise

intervention case we specialist. to support intervene analytics through management uses identify program support prevention are crisis suicide or for risk at a model once members those members Our to suicidal a And telephonic access predictive event. peer identified,

engaged members for program adult young members study, health than control per in groups, reduction commercial XX% behavioral a per suicidal observed spending recent and a risk-based in month XX% adolescent relative a member engaged corresponding to the intervention. reduction more in post events to we In for

We have since members. expanded the program to more of cover even our

create the levers February, on of we the differentiation beginning ground Specialty and advanced to of on ahead expansion of dispensing construction BioPlus platform dispensing focused the onto acquisition BioPlus that our talent three will in of of the CarelonRx's closing in of facilities. first whole These capacity remains Prescription the investments CarelonRx new support Since the broken have the health. bench pharmacy owning migration strategic of XXXX. planned deepened specialty

an We Commercial contracts. BioPlus as and pharmacy added Medicaid our of have specialty also in-network all for

delivery CarelonRx Pharmacy, be margin. consumer launching Later dispensing quality, home for will app, access improving we this be our value experience Sydney differentiated creating that a additional while Health modern, year, CarelonRx experience will into through integrated and

In membership continues Benefits to from we're report Health our risk-based commitments. market resonate. on to the recover lows, business, again we grew once key progress pleased margins and to provide distinctive value Commercial our we the to pandemic-era continue as

reflects experience years, our momentum steadfast things at satisfaction, customer customer Score, their heard experience, customers inquiry Promoter our including segments; are across all Nearly Net metrics point our three our at you of on highest conference, key As simplicity. value investor effort, affordability, all and resolution. focus and in

resonating. in investments, the rates Meanwhile, selling product our proposition yet and that two tracked digital overall another innovation, national are retention value historic accounts our past business across indication to have seasons, highs

experiences, In continue delivering exceptional strategic lead we focus in alignment consumer with on the advocacy. our to market

And next-generation XX gain advocacy on XXX,XXX year, health, the first engagement, total NPS its entered market improvement percentage continues and health to our in clinical total serving new consumers point [ph] a in solution, this the Our score enjoyed solution, total building personalized advocacy XX%. the over of to success momentum. quarter, connection which

million geographic performance for innovative business, advocacy integrated strategic another we product offerings, expansion two the for year-to-date also positioning. through with geographic X across XX% market individual compared with growth X% members. poised strong our now and Between nearly grown serve and is which these year our the of We've We're growth pleased of membership footprint.

later beneficiaries coverage members our Medicaid transition additional with Medicaid whether of well-positioned coverage growth this plans are We own elsewhere. health year, or for begin to when

on as requirements continued Medicaid In growth redeterminations. about begun the to awareness with Medicaid and have membership processes, hold. alignment remained drive renewal state in first CMS on redeterminations to we outreach members guidance eligibility quarter

are set by decision ground tool. We for new work, an supported as our support digital omnichannel already educational campaign, as taking innovative approach activities, game to well our

mobile-friendly web-based federal few just this questions. for Through regarding to coverage guidance consumers and quick additional answers state and provide eligibility based a platform, we for on personalized options benefits their

beyond to credits, consumers reach to our or who Most to are whether plans enroll. care, effective The to allow access health include care healthy child it maintain care of health need will all guidance assistance in us to on they are support members tool alongside housing how goes today. to and of traditional not food, access importantly,

portfolio positions quality communities, needs Medicaid the market, diversified Elevance to alongside distinctly a deep health are of approach understanding and solutions coverage Health and well-positioned spanning local the our unique a care. Commercial, our This Medicare ensure roots access in provides to of of strong uniquely we

Medicare than needs within group plan posted dual-eligible special in Advantage. more growth strong and offset Medicare growth members, individual slower which

industry to market will proposed provide time model the month, conference long-term. our a And adapt were see to the at the had risk to pleased changes. to Medicare XXXX CMS important revision help the strategically investor is stated in the Elevance over move phase for notice. it Advantage This in last Health we we As advance

care actively providers working prior we establish the Today, and our EMRs. into EMR directly value-based working including processes make providers care is of with we network, workflow through are our processes transition providers to to enable all closely directly including own that EMR businesses, care continue a workflow. providers, seamless to by Across their progress care Epic, their exchanges critical with multiple data authorization imperative, with initiated leading within in integrating bidirectional

can With patient the staff this and information authorize they records also to connectivity, find our clinical care. need review

this is to clinical accelerating for rates. In fewer lower in and resulting requests for information care additional processes appeal substantially approval provider addition significantly consumers,

approach to our one meaningful, we for we Recently, towards health make and closely promoting at published by progress by goal time. progress report, a reality, providers make report with whole contracting outlines our whole are health. health to together outcomes, person advancing for for summarizes health measurable which connecting partnering care collaborating The success a first that how

view report, on and of our our we least expense benefit consolidated towards value-based expect target to at you risk. XX% XX% our annual updates provide achieving the in to with XXXX progress encourage care having of We at downside in least

like and sustainability long-term whole health to business, those value health factors that especially social and health to drive practices, While creation. in outcomes we governance core better will also remain are our result strong and committed equity

learn To work ESG research, you report to and We enterprise are recognition maintain our our and ratings strategy, environmental continue for receive to more impact most our social of released sector-leading about and the XXXX. efforts governance corporate prominent encourage analytics proud for recently and how we our ratings firms. from three reference supports to impact strong

I'd the to Now, associates members on who we are work thank take they important XXX,XXX for to than of moment privileged like every behalf our a the do day more serve. to

is consecutive improving for extends to Fortune's in it to be And as own XXXX and one best companies. the Our year for be XXX commitment most of by to of chosen to communities one as lives unwavering, Fortune associates. our innovative we third America's and work pleased to recognized were and companies

our vision pursuit for culture prioritize to continue Elevance of Health. will We in and achieving talent

a delivered start to enterprise XXXX. in In year, resilience a conclusion, balance more our pleased of we be have John and the discuss strong in will the moment, key to in are as detail will

commitments trusted serve. those for to partner and lifetime are in being We health focused privileged our confident ability we on meet a are our remain to

call Now, results. to for operating John the on more to I'd over like John? our turn

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

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

growth a of partner. the enterprise continued quarter Carelon, our optimize of opportunities and execution as of invest lifetime high-growth health reflect businesses, in first trusted to our service the Our through enterprise results continue all accelerate mature becoming we in our strategy,

medical Advantage, of in the Risk-based plan an driven and members million members. quarter nearly special first year-over-year, X.X dual-eligible year-over-year. organic We Medicare growth and with and need ended the of X quarter grew million million members, membership by membership XX.X group XXX,XXX over in approximately increase Medicaid by

driven positioning lives began by by strategic related this commercial expansion year-to-date, and In individual to should geographic shifts and grew or when later growth product coverage year-over-year XXX,XXX business, enable medicaid that XX% our year. additional XX% by our redeterminations membership

actions structure in sustainable post-pandemic these economics and which better took was optimize long momentum our reflect attrition pricing renewals by commercial areas partially business, risk Membership as the a group to term. on we for and cost business in expected offset of result our X the January we

quarter of grew strong of Our year, a BlueCard and by fee-based national selling business selling solid driven members. in year-over-year first by last another lives top and account on in approximately the rates record growth season retention season with XXX,XXX

health momentum these Overall, results Medicaid in diverse we growth well-balanced quarters. our balanced offerings the will transition strong that in reflect when serve and to believe well coming benefits business, portfolio us begin and coverage of beneficiaries our

other to growth and month, to of nearly services allowed our of in it investor grow that the medical to evident continued continues our nearly expansion expanding the at to health plans. both in scale through and Carelon, inorganically discussed its for membership by we provides conference XX% Carelon's operating and line first As which gain growth last momentum growth XX%. organically scope own translates margin top in grow and quarter,

I'd first our minute for acquisition requirements discussing the detail, insurance spend GAAP account accounting liabilities policy like new Now, quarter costs. long-term benefit for our results of on companies to and in more deferred adoption how before a future

plans. year guidelines accounting new We our us, initial adopted accounting improvements duration the long the and For guidance. Medicare embedded new targeted for new approach requirement of XXXX the at the supplement impacts this beginning the in our

flow. impact cash not our The change does previously reported

current position operating not our and materially or business impact strategy results. will cash future Our

us However, the new pronouncement prior results. accounting restate to required year

consider to new shown isolated first GAAP on earnings, the reconciliation our XXXX accounting the impact our of press release, be have the which immaterial. we the table In quarter policies at end we of

revenue line $XX.X driven Growth Medicaid approximately strong CarelonRx was of top First higher Carelon cover Medicare, premium premium cost by year-over-year. services. increases overall to in quarter and trends and rate billion, in growth operating XX% increased revenue and

Health points XX The to by medical our year-over-year, post-pandemic improvement for an structure. the loss reflect was quarter our driven XX.X%, in more adjustments rate basis ratio of business accurately premium Benefits first cost

XX.X%, at the in came ratio expense XXXX. operating quarter first to Our first of relative flat quarter

growth mid-teens and the for percentage we strong Health on enterprise revenue range Carelon quarter lows gain expected. the in grew as XX% grew double-digit margin the approximately Operating XX%. over And as year-over-year in Benefits pandemic-era growth first recovery delivered the of had

of at of closed Turning used the XX.X%, year-end to debt-to-capital which The up with was acquisition during XX.X% debt increase of the our a ratio fund to our refinanced XXXX. which BioPlus, and maturity. raised We due from quarter, was portion quarter in a ended February balance a sheet. debt to

X.X we ended days, driven million. repurchased days stock at a of price for payable the X.X XX a quarter, approximately decrease the in shares million of our During at quarter X.X of Declines DCPs weighted $XXX.XX claims Days were and days year-over-year. first $XXX sequentially and average mix. primarily by common

average, COVID the and our than cycle time XXXX generally of COVID a Omicron in ago. were having quarter year With a first surge the overall claims longer DCPs elevated

the the to million first first nearly of also of Payable included pass-through this Medicaid year Claims year. $XXX quarter last related more payments compared provider quarter in of Medical to

payments periods, Claims with in premium our pass-through Medical growth by would XX.X% both compared Excluding revenue. Payable provider year-over-year grown X.X% from have

expect As Claims we XX% long-term. a to be the our Payable reminder, in Days low range in

Operating first cash the billion, flow quarter the from in month early of revenue of premium receipt including CMS. a $X.X was

Excluding times income. X.X net or flow was $X.X billion it, operating cash

businesses Overall, growth and share, another long-term year. the quarter with rate Carelon of first XX%. earnings to we the start per bolsters in consistent are of Momentum Health growth Benefits target in delivering strong pleased adjusted to annual in our compound our year our XX% performance our confidence with and

segments, to the we our year, in our Given momentum $XX.XX. and adjusted full share the per business of for than the earnings enterprise balance raised each strong our greater to outlook resilience start have have we the and year of

we catchers of met the of look remain As XXXX, the that rest have on our will in the to we focus our and best industry. execution strategy demonstrating

high-growth the through continue will optimize organization We and growth accelerate of businesses, invest our to our opportunities mature Carelon. in

And the open call operator, with up please that, to questions.

Research. question Justin first Lake comes Our with from Instructions] [Operator Wolfe

Your line is open.

discussion, topic Thanks. I'll given the it's Good industry pretty question use a morning. now. my across right important the on on DCP going

talked So, you John, about impacts. seasonality

bit You of then little lower XXs DCP. different types talked type about -- a where driving we're And said low going. claims is you

that quality less it's looks it. I more every care down, it bad, And time, think managed right? more typically, up, -- in everyone it's as of thinks know there's DCP good just of When going there's metric, over it's and on. at Now, and going to earnings or reserving investor lot right? think you I a

going been maybe of lower it going meaning what to aspects? Thanks. you mechanical over XXs, your to driving you low And what's is get So, tell already? or beyond we kind to And lower period can what DCP be is expect be it should going to about recently us of talked to how for time are normalize? the that we kind reserving, the

our from should a do into that basis X.X that I your quarter-over-quarter DCP things yes, on of lot quarter-over-quarter taking and days And you on maybe say or calculation a Justin. aspects. the is you, and various can by DCP. go days But days X.X Thank the appreciate all of other denominator you're I there's question change And number down sequentially. to the questions way

the I'll not just state reducing outset that lower DCP get our at by reserves. will

December consistent were XXst the income is We very coming conservative with are this up consistent And associated our there in with a no they and reserves methodology XXst those at actuarial have benefit March reserves, as in at associated drop of terms here to DCP. that with and statement team.

little asked that having talk you about So about. the maybe behind some of bit that a mechanics

COVID. of were That a becomes the been COVID bit mix in ago, is a case have other had than becomes surge the look for cycle that claims claim through the a type very and time takes And the a at little process, we the us obviously bill our for type midst Omicron just longer mathematically entirety to of DCP pandemic. the when in you claims with time adjudication of claims cycle both inflated. you the had longer, a year do. We the provider longer, And have important.

quarter than And very being see and or is was drop. in XXXX less XXXX you matter, time so in with that important, it really first a COVID that for the cycle of much so XXXX so

than On in retrospective the $XXX important less were this but pass-through million the prepared of I reserves, of that XXXX payments I have reserves, it's of and made they end March comment our of states, provider think really statements, those XXXX. the amount we get at from Medicaid these on partners, we as And March the Medicaid reserves are of

calculation our Payable Then our by able pulled we impact and from X.X% a grown are through balances see income. on from definition, payments, if zero our Further, would growth year-over-year to reserving conservative, still passed very, reserves that And have these in which reserves, be pass-through have that XX.X% very the out you Medical our premium. are strong. methodologies Claims to showing compared net

terms see of will number are as down to DCP payment And another era a take long the -- pre-pandemic So that to cycles of cycles. expect be few starting XXs, result. the occur. payment those how it's low And more you as any are fully get numbers, constructs to things baked tweak to should with consistent there's to years. we going in But could into

the opportunity So and very to clarify that. question you much for thank the all

payment cycle. the about the John of earnings. is and really thanks, and more and just think I really entering And reiterating claims a really reasonable tail strong that, longer we to to start talked year DCP reiterate what feel didn't think is Justin. question. impact We And John the COVID a important Yeah. Thanks, John, about mix it again, this because I that as factors a you want all said had and

more much a the there. So the to opportunity little for question, very provide perspective thanks

please. question Next

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

everybody. respect and at MLR thinking guidance Hi year for the you to on of that the look as plus service full in line was for comment the any any MLR are basis, minuses the expectations that points with management there? with year-to-year. basis of better consolidated changes categories, you least or seeing Street at your a rest Thanks about right care your year, areas Can question. underlying in you're XX expectations, both on trends

first No, report at comfortable overall aligned thank cost quarter of certainly ratio reiterating overall are very really what our pricing our pleased loss stated you maybe our question, with the Day, A.J. I MLR and consistent much We're expectations, a medical thought guidance Investor for consistent structure and with the with XX.X%. And process. very trends to with and our methodologies the

slightly from trends I pre-pandemic they're with Now cost in exactly are our trends with were those our and what But aligned elevated exactly methodology. line as level. pricing said, expectations

the So from improved our Benefits margins. Health quarter with can of we're I coming in you through where trend sits to first MLR see And segment our has the you. certainly Thank think now expectations. right pretty comfortable But that XXXX. compared

Thank you.

please. question, Next

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

Yes. as of a little interested your in quarter, and with what there? in self-insured was of the particular, in Thanks. strategy some self-insured then your just you're block? in general, looking product cross-sales services businesses about at to in Could your PBM bundling you And your respect I talk bit is into cross sales

happening little and because about business I Kendrick to probably, in Lance. our share point. really think Carelon, hit first to ask a going Yes. a the to you talk fee-based on then important bit Thanks Morgan for I'm what's question, Pete,

of percentage you've of obviously, Carelon and improvement a the years, part just that and progress, premium a the to a nice some the big PBM, as up that, we're member. the commercial, then, going is been of profit but just strategy per And with made Services. for in it's we've number seen not of One, through selling services Carelon

share. please Morgan, So,

are back I a thanks employers to that several in actually that for strong especially value own really, the we think their who goes spending had run we're When Lance, speaks question. think the market, the and about the to health driving and to the the the years. business, fee-based we've past And money. really

in a is pharmacy year, To your many fact, a had very big, nice point, business. piece of it. medical this We see selling really side. jumbos cycle big the the We with in Carelon didn't

But Rx delivering. the that more pharmacy from was the and medical to sort delivery thus, us. integrated So whole and attraction seeing of together the well as absent that's more value of nonetheless, of percentage model actual this we're for idea

about you really whether Secondly, and that think working programs to Carelon on, whether from payment these nature our incentive the of with continues health, other market. the integrity important customers, of growth sort are very it's that around and that self-funded attraction are things that review, behavioral bill the are products strong see to the

day, the in beginning purpose said, working create together things the things of back end anchor the that build team Gail again, and at That the the Pete's market. to my for value And three in team remarks. mentioned that to are I'll opening in her

markets. is can market more be the turn And our the focused affordability, fee-based connection experience going critical drive we it strategically think to that, Pete, continuing keenly And and Carelon growth. to that the for between it's the I The you. pull here and is business to I'll commercial better simplicity. on to together,

to things. Morgan. in that pharmacy But is the as Thanks, start offerings for Morgan I'll the right. services go question, really and the the then integrated with of marketplace. I'll And we're thanks the side selling Lance. All resonating said,

the I or we lot think in a business below strength continue as our business. being momentum, about very have side we strong. today XX,XXX the and commercial of talked are economics on Morgan segment this the And perceived and to where see of the

is retention in activity, say overall. RFP be pleased year-over-year. with XXXX thing up We've that that quite frankly, And another improving is I'm I'll is seen

working pipe is now The really We're has Morgan selling with So on that's XXXX right the that good building. season thing. closely a begun.

strength. opportunities, very that say a lot our we're where business Commercial has would of interested niche again, in I

So for TPAs. example, as on the side labor as with well

below. or that lot and a of either continued and opportunity So niche we XX,XXX opportunities of see sort

off started. services, Morgan building said, post-acute mentioned where things where prepared like her we of that's not Medicare, we the expanding care as Gail in social we're in to health. And really As great really remarks, offering, a as of example equipment only relates and into things durable determinants of like services for care it we're as with post-acute and started well expanding but Commercial the that now medical it

medical formerly management AIM, in-sourcing Morgan's business, things a we of genetic cross-selling services are like into deploying benefits known our testing, in as lot that critical business, we're then And oncology. and

the So of I driving we're there's year. lot a business Morgan on to that very Commercial areas important are that think through over the next

So I question. appreciate that

over services, only those years. ability and shows not the to consolidate good last example that's our Thank offer -- are the I we additional who another also us bringing Yes. we've for medical sourcing value shared think of you We've multiple question. which done would before, XX shared many that customers carriers, times to point. one it and And few proof I just this of the additional that market. have sell the is single but with the we're

So again, proof just point quick another to ability on cross-sell.

please. question, Next

of to go Ben ahead. RBC the go Please Hendrix Next, from we'll line Capital Markets.

within impact to physicians' Hey, thank had through thoughts little Having are much. there you Anthem's audit B Thanks. a the plans and risk rate the offer rebating willingness the work specifically Carelon to you very could risk take on which and can and to any partnerships? incremental time impact XXXX extent bit more the rule, a RAD rate the update to the and

Norwood I perspective. question, ask some start provide the I'll to and first, for Ben. then And guess, Thanks Felicia

in that were us CMS industry moved will to see phase foremost, care pleased in That providers with risk give we final to adjust. notice. time and to all the in the and First model the

you we're of as in midst bids. the XXXX know, the So

maybe about little perspective lot to won't but everything. talk So bit we more a ask Felicia that, a on share I'll

Yes. Good for that question. thank morning, Ben. you And

who we're This impact for providers participate trying certainly said, to program sure and a beneficiaries approach certainly very incomes underrepresented. to the individuals smooth of be strategically make very who Gail well give us phase-in much opportunity As model will Health we serve business to have them. the around health pleased as very significantly us on that Advantage the as equity a important long-term, will to changes. this have low is Medicare are who the continue with risk we and focused and the certainly Whole in

the benefits, XX% As health we it's I've over have when less $XX,XXX. before, things supplemental at that drivers of program balance for our of opportunity this take with a incomes we're individuals around take And said in these able our provider look and we look XXXX important bids well partners a long-term. need what our as all to to as as at do we than

that serve. equally will grow continue how to business changes relative be With and any as us by privileged disproportionately disadvantaged don't important, very for very to we XXXX, competitors. our are believe that we we our for focused certainly said, we on about important the here to strategy think we of to And how we this for continue deliver value those we're that

Thank you.

please. question Next

go to line Please we'll from go Lisa JPMorgan. ahead. Gill the Next, of

Services, and wondering update was around I an to made thank wanted primary as relationship your comments the with about morning Carelon primary your Carelon care on thinking initial value-based could really you. and have Good on or about if I you you to doctors? care other strategy. areas Aledade talk continue that. Gail, us back just didn't maybe you're care when go that build to relationships give with you you you and

for you question, the Lisa. Thank Yes.

we're it care greater provider it's increasing of said important the about business. with that overall going share it's to foremost, driving And that how health providers. at comments, downside the to again, the risk our first critical understanding care you beginning strategy, think and really and about we importantly, value-based benefits think our of I it's, amount

the we're again, right at varied as value-based now A by of mid-XX% know, couple care you, of is consolidated bit XX% get goal shared a and in to sitting our business. XX% and XX% the with little you weeks reimbursement care And ago, health we downside. conference investor and that our to by

lines But of solve trying again, that mentioned of and as business geographies. It's just others, Aledade you across and piece are thinking few multiple it. one a to all this about that's our important strategy, for we're you

it so And Medicaid, for us, we Commercial, Medicare. for and want

model for going So, isn't fit one to all us. size

our and to not going primary more to and the those and Carelon, care. management we're what structures, take With respect frankly, are in just investing capabilities quite whole of accelerate to building from allow new through variety a risk us enablement person

dual And out integrate and like and complex. across population huge chronic about Medicaid. about think that's really to populations see sourced about of what's to That's under what continuum an and scaling And benefit for specialty would part quite again, population. how that the expense, thinking in and a big we I leveraging area It's a I opportunity for you an point that area frankly. has a is just we us, enable guess heard that we're Carelon been the different Felicia specialized has they're talk and huge building

think So, we as in partnerships. yes, about we are it,

important. of care piece value-based only one it's As those, some you drive mentioned, they're of strategy, our But helping in is to They're broader markets. which, us again, grow. our

importantly in capabilities. benefits gain we more and as also business, we Carelon earnings health so And increase operating of opportunity do to see as but drive drive both consistency a big this inside our our

just bit little a focused. than primary different care So,

how and that strategy. broader thinking about I think the much overall we're than

question. much very the Thanks for

please. question Next

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

driving client on deliverables of to how across Medicare and bit more of stand across Thanks. after rolling the then Commercial? maybe of little extent terms you the across and your terms that that you in maybe if the just quarter of base that timing Thanks. first that things you're some And could Was in share latest the key scaling of for platform drill post-acute the the care clients in the that? terms the a exactly the in around on interested where outcomes see expansion out on

you. address Thanks, Haytaian Pete and your I'll Sure. Scott, have questions. Thank

Thanks Scott.

happen As journey we we're prepared now Gail Day, as talked expanding and in was that in about, finalize the talked but fully in the on able respect really this with health. about, talked to this at that this And implementation care maybe first medical equipment and business the mentioned are Investor drivers to this and core I the XX respect about we of offering. a this Medicare That of durable remarks, started XX, offering. we year, with excited And ago, quarter. were will post-acute months product throughout year. implement we social about we the to this

post-acute and services of into this will Medicaid, year and We Medicare that and expanding through into next these year. terms are also flow in care

of lot to drive a there's So these runway still internally services.

is In do that terms also I'm create really care is question a for of I to again, and here that what something providers. your metrics performance, mean, differentiated excited post-acute we're key trying experience very about. on

streamlined most And approval of can is fashion. they technology objectives. seeing and are a cost and the care So need it's play that when levels different so dealing the we're levels we're of as performance ultimately most quality they're appropriate, through looking where or services, the meet and that's our differentiated, in going of care, services get they appropriate And post-acute service of care in home, our of with where is and at and portal approvals a need in sites that original the the effective. that into they appropriate to then

a series we're making. metrics and regard, the that of we're we look across in progress And pleased very so at

in XXXX. the opportunity in So terms expansion of the that the of and terms happen product the business, good; very will next over year into performance, of lines other core into

Thank you.

Next question, please.

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

Good Great. morning everybody. Thanks.

here quick a question membership. overall commercial your just So on

of on lack when just get membership are Aside commercial the create and from now impact could from in to commercial stage? kind this macro US so a strategy on this macroeconomic year, that negative know on the at around unemployment And repricing hasn't whether from any seeming the just about overall the book, thoughts guess on risk curious I increased also at year-to-date you've that noteworthy while commercial think both far Thanks. push, of factor membership? I just the your redeterminations thinking view want fee-based bias big for impact your the risk the I upside but about the talked the perspective. on that a it's XXXX. really

nice heavily see both government ask our book heavily matched But if more guess of bit the diversified growth – business, history a I'll mentioned. to had little a of pretty that little the Morgan you I the Yeah. quite question, business, more a would look color. Thanks to and individual, we've for business, Steve. we, frankly, I but provide at say, resilient in you which

From the just the Morgan in employer those said, around a as think, affordability value three point things. two to distinctive marketplace. continue, perspective, we I would drive, One, and of experience areas to offering really I

BlueCard business, that up, numbers add served system in network overall, distinctive but that across shows BlueCard. our system. the well, Blue the we value also entire us So are and the our fee-based The in certainly

in environment products. that to and whatever continuing that's think we're about, recessionary think might I managed actually, quite another -- we well distinctive you our because innovate I value, a of think, kind So of

to trade on the little But bit color a I'll more maybe marketplace. how see Morgan in we ask

certainly think tech Gail's indexed point, industry, one speak, as -- business, business there. it's particular. industry. Steven, indicated, on our comments camp the about not thing our to hospitality more you to you and to in think about she very so When we're Gail's the downmarket we're business in government To

interesting about think it's market times the of benefit when being customers. were what market, risk-based -- It's to is employers I the when we're upmarket, different resonating to to resilient, certainly you downmarket, negative, persistency the way have the like good business because of about and a that our recessionary with the experienced vendor, certainty. seeing, rates, so to book, word making about employers are the degree When attrition focus we progress don't but than think you. tends business. assets seeing market that's gravitate single high more it but down good all-time into use feel Thank really written but course, others which that we're being that a consolidate the certainly in we're purposeful in was only decisions seen I really and also not the the feel as having And

Thank you.

question, Next please.

Sachs. to Nathan Goldman of go Rich the from line we'll Next,

the utilization I in over increases to talk develop procedure it about data you And Analyst follow drugs. of to that in for continue GLP-X And guess, I would wanted on Good pressure new if are we've talked at A.J.'s within higher you from for you the we guess, how volumes. on up the that cost expect had guidance the captured question. course about the MLR be your I cost to morning. seen Thanks question these year? points areas like trends some on you utilization. Day, comfortable see year? Could the

end question your and you, the question, start the I'll of first. Nathan. Yes. Thank Appreciate with

utilization are the our on year. MLR that are the we seeing very are that We confident trends captured for guidance

So all that sit here is issue an today. not at as we

anticipated. a In and of cost the pressures than terms we of areas doing better there are some there cost they had that lot are are of said pressures, had

quite On talked the of in got been lot about protocols GLP-X, We've a that's bit. there. a

clear want with both do for do required weight sure I a and state diabetes. not we drugs, loss weight loss states to weight where cover of make law. exception the GLP-X is that And people are loss, by it's few

I everybody of never not just that's really was ever been make any part want has of commentary. on was So the that. the and to part sure conversation clear of

to who are that other need folks. purposes not the for necessity appropriate medical access drugs, but of have terms people protocol, diabetes that to are so them, those sure the in utilized certainly, we than want that to drugs to access that then And they're have getting diabetes diabetes-type making for

maybe seeing We is of -- less levels. COVID in We've other below era equation, we pandemic trends, still actually on time. terms mild we're very more in a And still is bit season. flu estimated pre-pandemic got of the had at or than this ER a side point had the era good

year. when are out There has the pushed today. trend. many, are later many, pay very comfortable many Overall, the sit where serum we vaccine you. that with The now estimates into timing in been go for we of we of terms boosters in Thank the

please. question, Next

Next, to Windley line go we'll of the from Jefferies. go ahead. Dave Please,

you All to that I Good morning. with go wanted for right. Thank to us. taking -- question. upon my redetermination

for states that and estimating where about working were detail some changes offered factoring from in At discussions states now. was the involved pool talked more the redetermination in You rates. very there closely around into with risk the bit Investor a Day, several little prospectively we quarters

prospectively so that type that changes. And need wondered like, much -- concerned about and something add and looks about more talk risk that to the it is supportive, normal a of of the would and Thanks. how less could perhaps activity? than a some little guess, we of higher if this as you be evolves seems what color bit I composite as I rate to be pool result margin

is which with what addressing of just factor Dave. is acuity renewal existed a belief with than Thank is start you, the what those which be of population describing, were will associated is the I'll rate acuity in out part the covered, what Medicaid the now process XXXX. you different standardized

about good very feel we so And that.

justified actuarially it. in very, We input January. good we of work rates. ensure shifts with already partners rating said, was actuarial feel started since factors have in very actuarial acuity has into case assessment, now The a about this that are in I XXXX to -- our that We we state not part as the closely the very And standard XXXX. here models. And acuity that the

different. here is to we're about state the not that's of Each percentage, terms its something exact publicly. actuaries. has In talk Each going that state

our We have actuaries.

majority very very, having meeting had terms the good states have success the minds We actuarially at with equivalent in our of vast of of the rates.

it. So feel about very we good

hit of But the up members insurance coverage. for met where have nothing for where health of in redeterminations our and really think terms to has seek to great end we ability are well regardless that rest we the going catchers numbers us year Medicaid really the changed positions our our

little Felicia ask bit with redeterminations the John. has of the just And but fairly a what's in to process happening I'll process. started, early on perspective maybe Thanks, give it's because

Felicia? So

Day, on for had with access exchange an trying to that or and And on product. care individuals that's to assess, Commercial make those Medicaid who question. you the health continue at that Gail. or our with whether sure been time you, Dave, side to certainly maintain period we've thank not the side have we hard coverage the at at of this goal some work the talked Investor all partners, of Thank state Yes. as for

our So we where partners. as weekly our teams state in today, about almost think with engaged are we are meetings

We members addresses, around processes that where and a administrative to Medicaid sure have Commercial and around have then able business leadership to side. thought outreach making members, the being able able to of with a to seamless been between possible we're wherever also out provide help lot they are on to processes advancing being our shore up happens contact and reach transition what

his we and and We're as product. capture to us over collaboration of the they very think well Morgan I here Commercial move members how had with positions team, Medicaid a from we've for fortunate that

our that earlier, to the that in haven't to this kinds Ready, trying mobile to all developed, around to they have we outreach partners of process initiatives be we've meet Set ways members members wherever the are. done Medicaid with in then align mentioned campaign, we able renew Gail our state the ways can ability that before. and

we fully So feel prepared.

as to many means possibly as understand the we see ultimately of this as can. with beneficiaries make them for process sure of engagement to out we those of are We to coverage are trying for continue pleased that they goal reaching what the individuals

day, partners strong our in of states through through end move terms the Great how vigilantly redeterminations, we process visibility around the as with this we we are have this at of months. diligent our closely early, to this positioned over to work rates trying as next the to XX XX very able and being maintain sound state but albeit collaboration point. we At with actuarially and through move

Thank you, Felicia.

question, please. Next

to go go UBS. Caliendo ahead. the Kevin we'll Please Next, line from of

beating and is answer really my is on Is that the why seeing of we normal. I they're sort we're my issue? commentary in right trend normal, not pricing like the really And trend not maybe and are of that Great. it a Thanks. We're more where DCPs. years hearing is the it MLRs normal trend the spoiled pricing COVID? and MLR are in anything there. question to Claims just to issue? the Thanks through coming guess feels Payable questions. just it new guess why for Really risk understand extraordinary and It you're I anymore. appreciated is just taking Days now similar back is We this and the -- mix is down. just Is Is greater. there much a got

have I trend do and expectations. feel to very than a for that good the and was Kevin. And came where thing guess question, we bit is say you in MLR it our better really Thank where about first in, came I actually

to when projecting those look year, at our XX.X% we what positive I So, beginning have the been expectations. the of is of actually as

In terms of that that had to cost associated and pricing, so our goal total way. pricing that underlying always guide is reflected cover to but the also cost then to ensure not were there structure. overall our to We some that that needed COVID pricing structures trend, said price trend that for our forward we with Commercial only reflected that forward

the the end think good to get at spot very, as our here really of membership pricing nice to of now a hit really margin that we've to -- the sweet very job well first a trying quarter of done large retain expansion. cohort I see of as

bit than anticipated had we very, days XX do where better results a we're we So, about even that good actually are ago. and feel the very believe

you. Thank

question Next please.

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

a becomes could to well, growth, loves time Thanks. Obviously, ask you're too expanding the growing always growth but markets. that Great. into there much presence. Wanted exchange about The be growth. market then when

more that back you're data membership equality So, thinking a have a think the Is of a Thanks. kind what color or margin, about looks performance would how you the exchange business then so population around margin overall? of I on the or far? you that higher get than like how the little And that normal lower redetermination have wanted exchanges? something to to profile on risk margin,

Kevin. share question, the Morgan I'll for ask Thanks Yes. to then his perspective. and start

business. always our about business. in presence consistent Quite lost frankly, started. that we've that that we've marketplace been sort the is we I exchange things think We've very around in one where of money of never in been the

I say, a on way. expansion, about been the and very we've careful So, paced we've very done would it,

counties we've curated. as over sure the years, several we've specifically make was re-contracted, So, them, the network added last understood

nice done adjustment things. risk all we've think job and of of I the mechanisms a those understanding

year So, counties, as added that understood in we total, very this -- more a expansion. paced and was

So, in in who the Medicaid, are from profile about they a in expectations frankly. quite big feel as good obviously, what the and profile we're good And performance members because Medicaid the have it, those we states, we of our kind really as we very about are. well because know feel good there too. on very We they handle come of

who answer as very wanted so one into as very my came about would fell We've exchanges of and be, I well paced big hit we one a growth the and aren't had swoop year. look, good So guess to just a and our expansion, both our that. someone feel make progression measured big

But a to couple maybe add about Morgan, you of want more if comments that.

Gail. a XX in certainly, I we this We could Kevin, sure redeterminations, pace Kevin. serve wanted sustainability we areas and and thanks make to don't for the expanding business, the we question, whole the at measured there's we the know our members Medicaid as lot could took looking back geographies. many approach, as were where around add of to very to comment into

competitors and in interesting that market the lot outs then about had cycle, ins and said, left. thing the we with That had this a of in come

occurred. wouldn't in perhaps left have the a it that of So ordinarily movement lot market

positioned. for it begins. Gail's feel feel positioned when are good to economics we're and we where back comments, about about well So redetermination good the We behind

you. Thank

Thank for question. question. you One the last

for go from Please Fargo. the to Baxter we'll Wells Stephen ahead. final our question, of line And go

to how get on quick Yeah, hi. a first government the Thanks. update I quarter. was in the hoping performed business

margin you previously driver that as for a the tailwind year-over-year about XXXX, remarks the line. the didn't Advantage as a prepared on MLR I release I in think or necessarily see but being Medicare had talked

want I Thank to little So you. just understand better. bit a that

we tailwinds reflect And appreciate -- to the repricing still commercial overall Steve. in Advantage you the think cost as Yeah. We're Thanks, some about the the that have includes I certainly question. XXXX, of the of it structure. pointed year better are percent we risk-adjusted now then scores star you and before, the to in have the a higher revenue fine Medicare more we getting And our than back levels. Medicaid. normalized doing did out, as

it we tailwinds the definitely do one we -- that of that XXXX. is for have are So

that anything to good be us than comments, -- So don't of the the of a the very, three-year say prepared it's about wasn't are. and read rate that really in for specifically next notice, good phase-in well-positioned very years, feel that we the how fact the other over that very line growing several business And it's it into as I manage then with can we we a think through well. certainly

Advantage Medicare Thank us. of be continues important for you. a line business very to So

for Yeah. feel we the guess, question. And than John. And the thanks performed government reiterate do expectations. business better I Thanks, overall,

So be specific we to your feel to question. very good about

shared positions with you our thank delivering our have and our We'll partner. we close our and a needs a health and customers advancing the will our strategy steadfast and to to the diverse like lifetime conference products meet to against serve, continue executing we whole pleased of investor I'd continue trusted execution that the XXXX, communities increasing of focus suite at confident delivered consumers, to Now you. start value expanding all and a solutions, with strong we financial stakeholders. Through to saying we're on by and to that We're becoming to ongoing health focus of the targets of keep discipline that last strategy us month. bring of

rest Health, in have the your and Elevance Thank great interest you a for week. of

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

you the You today. at XXX-XXX-XXXX. your any conference may Verizon international conferencing. system dialing can and by XXX-XXX-XXXX replay participants access using for our participation and Thank for time This concludes dial for

now may disconnect. You