Clover Health Investments (CLOV) 24 Feb 222021 Q4 Earnings call transcript

Good afternoon, everyone.

Joining me on the call today is our CEO, Vivek Garipalli; our President and CTO, Andrew Toy; and our interim CFO, Mark Herbers.

We will discuss fourth quarter and full year results, recent trends, and answer your questions. This call is being recorded.

Before we get started, I would like to remind you that our fourth quarter and full year earnings materials, including the release, are available on our website at cloverhealth.com. performance. caution call we risks that including about to statements make and like expectations today's during are future also you may that forward-looking uncertainties, I'd subject to differ Factors our SEC materially in that other SEC the Annual periodic of including filings. Factors filings, actual XX-K Report may results on our from expectations Form are cause our detailed section our Risk to and in to and update the of forward-looking The forward-looking do hereof, assume result not no made intend or a statements as date obligation events developments. these we statements as future are of definitions Information GAAP a about non-GAAP found on financial measures also can of referenced in to including measures website. materials available and our those be earnings reconciliation measures me that, call over With let now turn the to Vivek. Vivek?

joining for Thanks, thanks, us Derrick. everyone today. And

really healthcare the where just those make all are and for excited to expect ultimately our great today, profitable not model. in the communities, with XXXX to future, we provide to sustainable sits in to Clover do growing progress and this enabling but a especially underserved physicians goals about We

versus wide on typical equity, this minority use continue underserved with points health positive driving Assistant Contracting, some those than [clients now and the returning did with MCR more a Direct of Clover underpinned basis us. and went doubled differential billion, line while network Assistant, Clover And by beneficiaries to challenges launched for dealt We We XXX% to reflect on accomplished and scale. don't. an to we accomplishments year operating a Advantage a XXX,XXX. more business MA past and quickly We public, XXXX an PCPs year lives for COVID and revenue on the Medicare me whose Management eventful over $X.XX at](ph) lot. than our the events. Let under for a we impact be who was Clover approximately by Clover non-insurance differentiator Assistant with increased members our of recent first XXXX the

participating increasing industry trajectory AEP We Assistant Contracting our than XXXX to our New started a with there enable we plans due XXXX lives XX% believe benefit also approximately us believe over strong a the non-insurance states. had In while our Clover year-over-year. our a lives above to of leader. XX,XXX. Assistant increased our we will more lives lives. tripled we're in We Advantage and We the the Georgia, we financial now and on providers Clover Management share believe opportunities improvements similar we'll to Largely and about in for growing levels where Jersey, more at this markets two-thirds Clover Assistant XXX,XXX well Clover lives attractive have under keep growth and to the scale, MCRs. and we ended Medicare at improved our total Management, time same over are in Direct XX with clinical in drive represent In lives gaining And market core more driving the providers. to nearly

the to pay CMS’ the recent This something specifically in are we well. XXXX XX% model average beneficiaries for you more on communities Andrew for me to will We many material let paper our driving around advance equity the beneficiaries. call health over pleased but Clover to Obviously MA. Medicare is talk impact. focus and about upon or almost compared is Assistant about industry are even CMS subgroups underserved adjustment commitment to for hand a MA touch the order increasing more to focus of the calendar health Clover excited half as revise for well ways risk specifics. that, get equity, read that that encourage much is appropriately But believe the With continue to of rate explore year of to more wanted the more over I Finally, are we the white positioned with we how MA year increase, are notice next to so, given our to specifics in the plan. it

billion. and Thanks year we was fee-for-service line its under with continue evolution into annualized healthcare Clover great in entire improve invest our a Assistant Assistant to increased entrance break and down unlocking built was This open with direct to major within market new as Assistant, integrations across athenahealth’s preeminent in effort Clover us $X deliver leading Clover medics enablement our EHR, for over The the Vivek. contracting Assistant enabled coming integration an with XXXX physician to first the the system. interoperability Medicare an along business silos management of platform data more on soon. our fire to through standards Clover

access can Clover improve in Assistant per to aided scale broadly quarter, Clover level cancer the that to validation fourth can an rapidly of clinical are physicians provider successes XXXX, first XX,XXX believe of We XX% gaps as quickly, ways the on kidney for launched there care members differentiated facets allowed the businesses. and but every Clover can to scaling opportunity, for demonstrated it managing a managed is clinician raise this also year-over-year Assistant those also and both physician platform, iterate ramp fundamentally care XXX,XXX from To the benefit In cohorts only specifically some These terms adapt programs and of plans MA, in Clinicians and the models to easy of Clover care vulnerable MCR given the MCR, that Medicare, and of disease. a difference traditional and of translates by the of action. risk suffering in in potential recommendations clinical measure targeting different approximately use, of average, our we between approach. Clover not our and value-based length CA. and change Assistant X on platform million of software This when is Assistant in Clover The the our the summarize use more whose than bearing providing care we fit rapid fee-for-service and chronic from there grew serviced providers by healthcare month. engagement use than provider most groups on we the members XXXX we country. to flagged leveraging the single Assistant to data our more who went to every platform us By cannot. our in believe we care needs by nearly Assistant we live and provider plans don't,

members incurred PCPs XXXX, had Clover lines. service PCPs, with live with in X.X% For members Assistant PCPs, year members unlocking Clover XXXX, a key X.X% incurred went Assistant non-insurance who example, had who in MA Clover on PCPs, lower live in Clover MCR went MCR went our is Similarly, than live lower than in XXXX. Further, whose XXXX a members Assistant who with Assistant on business to Assistant on in XXXX. went live on the a Clover

This non-insurance two-thirds under the provide deploying of to For talking have to rather the but principally come program in two-thirds in care. of by In well. our scenarios, based and an proof opportunity specific software will expanding models leading in we of contracting, been care value to from insurer. software growth we our in Clover believe has fee-for-service primarily by revenue physician Medicare non-insurance successful these ability believe We'll value coordination, model other acting our about Assistant. our indicative scale of software this as software more with example, we regarding scenarios. platform to future. that Direct successful as lives be through we in we provide approximately lives, versus in enablement these year, fully direct to any anything Contracting, our providers fee-for-service, Ultimately, of based about demonstrated physician XXX,XXX This be expect success our and is allows management, not be these our care

it financial successful. to the cases, With evolves. of these address Advantage be highly ability We update. how Medicare these be feel the quickly care this programs believe In on Assistant innovation new one through based Clover for about proving in as Mark into bring like onto that confident it we all, direct them it poised more to do new healthcare we ramp is for as launch make that supportive now our the we value one well are very to successful will space, digital Medicare and all changed. and and the whether programs programs are hand be physicians are constant, programs or to We we is contracting, feel old I

We call. Contracting handing the and in up Direct before items Thanks, membership. delivered the to revenue going This Vivek driven in to quickly the million the year-over-year. quarter Andrew. by up I'm fourth MA important growth wrap of the our launch from to it over was $XXX quarter, XXX% growth in cover fourth

As respectively. have MA And XXX,XXX of comprised contracting Management. XX,XXX, and Clover year-end, of lives this and membership we was of under lives XX,XXX approximately direct

our million. incurred claims quarter net expenses, medical to medical the Moving XXX for were

MA future to deficiency year reserve medical to claims approximately the This was January ago financial Jersey costs Direct XX.X% the quarter. seasonal in is Also XX of MCR basis points, our year basis be keeping ranked Contracting on Omicron in in XXX.X% XXX up the premiums quarter of and of our of XXXX. New the expense Our third eye and the GAAP compared by premium of sum by were future Direct the MA amortization was to increase January. Contracting This to $XX into we'll non-cash $XXX.X exceeding reserve due XXX recorded remaining an points related the was expenses it's despite million. the quarter, of normalized premium medical primarily MCR which GAAP up by basis to which New for offset York, margin We’ve recognized and terms XXXX a non-GAAP adjustment in costs was claim driven to early an relating XXX.X%, only costs net seasonality carried administrative trends COVID utilization, XX.X% state in only million, higher typical net million. costs, both deficiency to $XX quarter outpatient compared partially was the spike COVID of slightly and direct something a increased and hospitalizations equating and reserve at top the of incurred reflect third estimate million expense the over on. XXXX compared in

the period was fourth expenses [ph] development, were of quarter direct in and Excluding compensation, $XX.X and total benefits prior non-GAAP which stock-based non-cash of quarter general adjusted administrative total plus salaries XX% seeking expenses, XXXX. and Direct excludes costs revenues from Contracting XX% $XX.X million of margin compared Clover representing in Therapeutics non-GAAP COVID adjusted Fourth million, operating XXX.X%. to revenues

expected We key our at adjusted of XXXX drive and expenses is operating strategy. in become efficiencies, operating we scale rate more smaller a and moderate as grow a a portion to revenues which focus

for GAAP the Our quarter was loss $XXX.X net million.

the Our for our quarter MA fourth seeking quarter $XX.X EBITDA the of After of for includes direct our approximately excluding million. total million outstanding Clover our and contracting, Therapeutics XXX adjusted XX normalizing MCR adjusted had from loss for loss shares EBITDA Clover was $XXX.X of million we raise. normalized November fourth million. as the gross COVID PDR, business the the end impact quarter, loss issued was part in which shares the capital at

raise. net XX proceeds $XXX in equivalents cash $XXX investments from cash, December included as million of Our XXXX, and capital million totaled our and

let Now turn closing over for comments. to me Vivek some

Thank you, Mark.

improvements MCR. Just XXXX are to we expected about for up our excited wrap MA

we another improvement stepwise addition, in XXXX. MCR will see believe In we MA

XXXX operating moderate by rate this there a operating only to There run done be versus expenses, is we leverage more relates QX year, our it work and increase and further being this fall efforts. year And to on profitable number efficiency that driven efficiencies. be may basis, As non-cash expect will excluding a expenses of a things place, work is non-recurring even of expenses. drive non-GAAP with next possible year cost because into much

take now CMS out the now as life, around lays I reiterate a that is want that adjustment mission every is for part stars. With are path to the let's comment that and risk out we health very pleased to that proposal improve in with that, equity questions. Our gap of

take Instructions] Richard question of [Operator Canaccord a Close from We'll Genuity.

that go Yes, again XXX,XXX was for wondering question. you if I lives could detail. more over the thanks in Andrew,

just and I sure You said to non-insurance understand I about that? make something want

underneath we insurer because that is so fee-for-service looking business, HIPPA we way understand not line covered how we're have Advantage the obviously that's is to not Yes, the be consider and you of where insurance Contracting like basically, that insurance acting of areas not Direct Medicare regulations. non-insurance this insurance We're an are that we're space and act capacity. obviously. that other with that started which sort we at business as the we an In company, which the in

We practices in are Assistant a go them actually and the government risk signing at business and associates then Clover with helping providing value with agreements within program. based physicians them with fee-for-service

assisting are right insurance meant that physicians And now business in but we're risk programs are groups the we look in to at we those company, to enabling based contracting, obviously to into an arrangements, physician where at So of and value that. direct go them but as as fee-for-service expanding enabling other to well. by in not by intend the acting what go bulk that's and

you and programs lives think other XXXX? do you'll have Okay, in during

looking right very It's looking at -- now. something we're at that very so Yes, this we're seriously.

straightforward want as to to with have bring as a into Assistant using MA then direct Clover who's for them panel us we do and physician that our about you the for plan of much quite either want coverage areas started and to it's contracting, of Clover panel, to or use what that If Assistant, for possible. it, already fee-for-service think other

seriously guidance have while very looking we're that this any something is don't around it So year. we at

And XX to – lives, XXX to of Richard, direct The and is XXX almost lives XX,XXX contracting Derrick. that XX,XXX. MA this to XX is XXX breakdown

how And scale Assistant? -- on third quarter more could the are little is if of XXX,XXX about I a contracting, have interested successful Andrew, XXX,XXX now talk Okay, you expected getting wondering essentially this? since Clover thanks. guys was lives you physicians you that have direct work to in been that some utilizing in with MA bit you're entering How

Yes, absolutely.

a seeing we're Assistant, It The more software manage Clover just are what with of that there use to referenced, muscle their physician and more memory, using more as here the lives I the platform. can So is now. development definitely results that in panel synergies, engagement back better. the

So it are that And MA. definitely we there. fee-for-service who using encouraged seeing are and we tracked we are physicians both for by what see we

others. our about can just MA basically on could we success there at their out fast by also do for once initial addition, necessarily segment bringing going And looking with by folks certainly to In of are very at them Clover all. fee-for-service. growing us, start be Assistant folks we that and successful sort the see the shown are that it's or just who is our something practice, our plan, a to with that serve them actual that emphasize we fee-for-service in in with region and success definitely very I think not as are is our side, well, and people that that is that's segment MA direct integrated not bootstrap non-insurance we then to on at quick fee-for-service approach contract be side a as that that the to talk on that to from side on very moving actually believe able We to into they MA either plan risk want own

Thanks. in I'll back Okay. jump the queue.

take of our next Kevin Bank of We'll America. from Fischbeck question

this is Hey, of Fischbeck. for on Couple questions. Kevin Adam

adjustment I I think a and probably think of benefit. kind the MLR that the less based risk in little of baked most in you on commentary, disclosure costs COVID MA you're

building So all into points to XXXish better things are you that basis MA going that's basically if than come saying upside. are of that COVID this like in you're MLR

XX% is guidance this Vivek. around to side, Are the specifically XX%? you the Adam, asking

to the MA GAAP MLR. Yes, guided you

COVID You said less costs. you've built in slightly

implying. that upside rest the XXX-ish in wondering if would I'm just So than you're the it came points, be basis better if

Yes, we But just up year, COVID and increased we're of a or COVID this this kind your impact demand Again, the basis would if did pent subsides I and exact that by over impact. in amount guided the of technically talk amount or we can't point specifically upside. our call, if But COVID diminishes costs be to COVID between baked impact not specifically the of specific points portion risk earnings adjustment in. few to utilization driven year. remember in baking XXX last about delineating

say thanks. And direct I just the headlines. there's And improvement much But not this. sure to been if wondering MLR any over year. contracting in how you about guess, thoughts. then, year around a also, Alright, you you controversy have I’m guided slight to have in

earnings near breakeven is largely fair are in impactful given be adjustments that to it actually to So to the say, term? it's any unlikely

Andrew can and thoughts? I direct question. you on good Yes, if some hit perspective of versus and kind add try maybe contract core our

Yes, absolutely.

for reviewed, or as it's before in structures. we care. and either original - ACOs original Assistant definitely at that's to this. on on contracting is Clover consumer without forms with other focus consumer company we whether providers Medicare, believe something those they take might there med be contracting there is just access of value have always based the MSSPs, program. scenarios. CMMI the And it the this And And choice, been Medicare to Original into the with contracting markets that choice that's like as that a of -- someone be something value Right is, and review and We may definitely provide through side, Medicare obviously, the believe or government direct But the what is a the now, Medicare Medicare being there's entitled similar traditional legitimate our in goal Sup, to Advantage. pick government similar a direct based but it's as applicable bringing physicians So program more well as a Advantage. is,

have based around cost many while. is value into is constructs, ways are better lower are going What's while and so necessary to better physicians unsuccessful, based move stick way that's them to been go for around able for cares at value do Assistant a create have been a to really to not believe we So which outcomes Clover a that.

So we the of had, we we've we market are others. help from physicians that's And that are durable platform, we feel that the getting value about software who a who providing. with need by helping a we're help part the good success believe accessing believe and our not that

make we Clover the because And generally how we go of the to we're We very Medicare where add on that is vision inside models contracting, clinical at and big decision effort five to of business of our founding can part to into over I we and think next platform. powerful. decision that build a we platform always the that's help MA physicians Medicare it's demand, at Advantage, opportunity, for down, Assistant just opportunity, mainly clinicians of much whether the kind don't insurance going payment consumer that decisions really intentional early best developing direct over model enable that. to more I thought opportunity we're software original making case kind of day-to-day scale the accelerate that side payment When we That's was and great that much demand years. do the of a as in software really our out XX And the We back agnostic of made make majority clinical R&D vast do support, Clover, we long-term very basis. kind the doesn't really to about models, clinical is decisions great all, go how around slow look going the wholly a debate around plan. only owned think it's to think it's to payment very curve

XXXX. XXXX. then the CMS at commentary and question, in fair from that point. some stars P&L stars the of your reference in given those maintaining that around Thanks. into view and X.X into the about improvement gave star plan - to benefit X.X least my I be coming Was around wondering Yes, you MLR levels stars [Indiscernible] was mostly the for if then rated in remind years that's last a And XXXX. X.X us can confidence would

we guidance was ended we a perspective, three repayment our with from to we've stars -- So X.X. original have year up guidance XXXX,

for guidance change X.X the caused was Nothing Our stars. to affect XXXX us guidance has that would XXXX. payment that in

I Assistant of unique and to As out this it the Clover Clover is year looking one constantly is XXXX, past things to into think improving. that is relates

happening year into feel throughout definition, feature we there's iterations to good and three so. of So cycle is by actual this next every year. the or going course weeks impact definitely the That

that we the Beyond part first that program actual palliative Care care that, in clinical program, very stood is Primary we've as of of as that. beginning program this in a of launched our terms programs, up time annual year this the one

quick execute disease that health in For what with our last on renal and started chronic we’ve primary with time the on in back half our towards kidney of to care care program, respectively. couple year oncology partnerships and and

We multitude getting year. expect going programs that to start improvement into impact year having an well. other the of next of impact to a kind impact a And next modest of as to there's more have beyond may stars

All you. right, thank

from question our Jonathan next Suisse. Yong of take Credit We'll

taking for the when XXXX, then notice. obviously question. MA thinking rich commentary on kind the events You the of think already. guess, how design you have moving and benefit you about Appreciate forward? are benefits I about Thanks

And about back you bit little a little about falling some you of larger have landscape? the redesign are a are in thinking So thinking that peers more market your guess, competitive into your I more bit benefits to given how 'XX? if heavily,

back has segments think at been side. I you double. so in and more the step don't growth the than in just of maybe Yes, numbers has the probably growth you over if years, last think, on front I I even versus me, HMO last have for been five it's I think rate PPO double, PPO plan Advantage particularly the take Medicare really a been where the if look

a drive of having lower PPO look the models about majority vast plus they business, reasons. it's to, capabilities really to at it's is HMO HMO the think our side So referring they driving Their scale business on plans, generally their is the much gross book PPO book you're of have using there, PPO. really kind margin, on that at to of a incumbent are probably control stick the level. when don't And but you of network. twice side growing that When of their at their much The around on for gross really on attractive kind business margin plans of strict tied XX% their approach. MA multitude the very of

So to they irrespective of terms the what go dollars, have option in do pouring still of against competitors the up additionally benefits, of flexibility.

So you can that's attractive, you're in make competing our we're in markets, attractive more model, core an HMO still the an plan PPO least actually but at against for business.

So of network a after, into model so are flexibility you technology. not is well of a they're we the and and the forth forward kind which on, fast getting to that incumbents and next well equipped year, world actually execute to business choice year

Assistant. we good powered so great PPO the about very invest And feel model, continuing Clover but by again, in plan to building a

point to a right, adjust I in in a taking we adjust is absolutely of gap of think thinking and how step the plan kind very attractiveness between that want your may you're the design very think initial through competitors. bid design, We're that terms still markets versus which further, definitely I huge that. terms there in early stages our

versus something's and do MCR, MA in we But between frame. of on it's of into And work if get very so there in mind, now an time the that balancing reference around, place, much thinking fall comments to to basis I focused on. it's made a our earlier we're something May or of potential lot top there's growth non-GAAP in about issue to think super a terms profitability. And definitely

laboratory. a Next year, definitely MCR is MA and huge

the I then their of going the in program, to are continue And taking is other back out as you're major there understand going program, you're into guess, of ACO there to any case build DC guess. around I obviously it are programs contingencies the changes DC significant kind just Great. program, develop I again, go you nature? I to looking that are needed. any anything steps software to turn are there there guess, that and changes in to perhaps case But

too to want we serve believe of Yes, that see we a as program, obvious for much portion do decides here direct just there area being to can that without to so want Medicare, we panel, patient reasons. before move the into. larger includes because in obviously can CMMI specific, we this that react be what to we Yes, but as of it's programs Medicare well possible will fee-for-service a provider's be that and original too contracting

of as As Advantage we're across well as insurer. why That's being entity able of taking the the to the not whether or risk non-insurance we're the or playing not. Medicare where gamut not role serve thinking it our businesses we're

to that with there, sort So, where value success I people of and just very of think and sort providers TAM, for growth when that's That's this we're like those based programs. rapid you sophisticated access And small of of who direct how know to number is everyone to and else competing fine. that's water compete a market look providers. contracting, a in large our go have can at blue very in our sign the demand the that fact

need need Assistant into access of sure been going haven't going able are continue world help And in the will successful fee-for-service to who the the for We we and can but past, to providers that are remain as the programs model, exist, is majority that be well. in with to these Clover successful.

to don't intend the So stay we plan market. direct need of fee-for-service but in here, we that we backup kind think

one. last just And great. Okay,

terms for I improvements cohorts, think year lot this in cohorts MA broke from of you're You the we if MLR. your kind about obviously for of we the that, out similar guess, DC adding a expect side, should XXXX.

expect Just improvement How around XXXX I should cohort? about coming So on? that? XXXbp XXXX add we guess, on cohort we color think should the the

benchmark too can for it's more we Yes, and the through pointed they terms obviously and right now. almost to and to goes differently. ask. do a say similar I cavitated us obviously programs DC, we this so program, as of But program, Vivek look Very in dollars just that at early care, cohorting fair one based of question little identical, expect are a different slightly I clinical the out, flow wouldn't identical one think actually need data is to but

share more to we'll those So as are we actually create track able cohorts. and

Great, thanks.

take We'll next Cowen. Gary you. Taylor from our Thank question of

evening. good Hi,

Just a EBITDA in could. in comment an take there. profitable it to the wanted guidance MLR I point 'XX. roughly Vivek’s your questions go I'm that want I of understanding $XXX implies I non-GAAP I could the think sure and million. to loss be midpoint couple actually If revenue make number, just we of your of if G&A

So to MLR points have outperform basis to so. by even you'd flip to even, that break or XXX your

So ballpark describing piece, is kind off plausible could do that to meant in for. MLR that when year, clarify it's profitability 'XX just And am is maybe that. on the a year, And went those ways sort and you I be you're key of next of 'XX 'XX. versus But numbers? the I'm you what versus

Meant your 'XX. to And MLR. just point around

P&L, revenue So line. the of obviously, there's then two and expense there's line, the have you parts a

we expect we year look you've a And year, as I versus year. last again. So growth this kind seen, growth of top been line there's think component, at then next if

I your kind of majority you kind them, X% above the a Gary, aggregate premiums of MA obviously career anywhere that the typical care kind we're pretty in And depending from researching One XX%, size plan. of a of the see to of the OpEx that. is of terms upon managed percentage spent of that you're of things as you organizations, with well given vast think familiar,

able rocket in synergies not past right it’s to operating growth and there. certain size, terms -- size science, to organization to from a of get So be leveraging

of guiding we a there's necessarily is different be the going synergies achieve, but round of viewport lines have we're particularly equation. ahead across MA. go that. parts to and beyond, efficiencies resist giving technology possibility. guidance MCR a MA again again, There's side we've given to to different definitely side, paths And possible, side Andrew as that, on around ton to we there's you And described us the the the And specific able that. of to it's referenced. So any on with as do of the prong. think of of it kind big not But MLR and And business on I'm it lots then

have parent of the at year? calendar do us for you a end And figure cash the

you think I I $XXX Mark cash million. is can want me. think I say around to total correct was

year, the number I I at can the share I have a end moment. of the For don't

back to we'll Gary get that.

participants as up just split? it Assistant, you is to there that We'll incentive can really, look coming enrollment Clover Could around for for how of just the but grown Last forward how alignment one your through raised 'XX? you've the of the about And it versus physicians of voluntary? in much really Is of, a of use signing claims attractiveness in terms guidance financial just in these success bit describe is one visit physicians, profit the there attribution, Can a cave. of getting So your you you've a are per you sort little contracting? sort like you out, your there direct breakout under me. the of is I'd DC? to enrollments claims see break then finding twice for how just strategy versus

Yes.

we water you into them, into can move strategy the So existing contracting, basically, that's heavy don't in groups, we're help from I maybe the that. said, based to and have our on they've claims successful go like wants fee-for-service, part tried of be based success toe but to move of the and as through majority maybe number, is, value contract, physician their is reason in coming that who alignment. I And a with exact we to here. is we there The coming in value put to it largely the say

motion heavily to trying which other opposed alignment, aligned. folks an they which we is voluntary because as if then means actually models, to And would physician. relying what switch they into business-to-business oftentimes, claims existing BXB move lives definition, methodology. with contract aligned, a be they're on And are so by are aligned claims there, we that were normal as lives, their DCE, This the having the claims

where have then we are have If the provide them able much required MA, the we're wish care. say, from on you're move do the to There's how using to no for and earning an are already extra just that's the like were to a that trying claims And we to and And people before based yes, have we these structure the year, we time predict actually And who how they're that effort just last we you you us, similar we there. use compensation then on voluntary plurality alignment, did model switching your assistance just so from of to basically. value is grow where didn't seeing into economic they able them means PCPs. MA this and give practice. we switch like we rapidly, for around whoever

Thank you.

Whit from SVB Leerink, open. your question line next Mayo our take We'll is of

perspective I they don't I'll certain what by among as your to overall to comply the how some think hoping there was go marketing industry a October and the to guess, And had. And of Good little happened third with a that wanted your just that sort know, Clover to marketing X, compliance some view an concern the supposed just enhancing back year around issued, some of to I party thanks. third last afternoon, with to was want was or development there anxiety notice back, stop created were occurred get I CMS, of that's that organizations. say, and lot on maybe CMS carriers bit in I response. Hey, responded? I of, mandates a how I and to get

very around the marketing. party We're and supportive third of Yes, bar to compliance recent a very, higher that's a particularly much efforts requirements great by question. create CMS

always a kind it just seen normal confusion the approach. sort type signing selling or meaningfully It's party they're think creates various marketplace. process. that secret of nowhere really organizations. for. agent years lot And no do we've strategies pop know we that mouth independent many those generate up churn over trying field in organizations sales higher in third of to lot generally of the of out leads there's a And don't word is than think what last confusion leads and with Consumers I to of turns of higher, a the because

of would all suffice that plan approach expect models trying to continued and kind really a I But its on say, of gearing rules very sure explain are those options. and make bearish to on to to regulations MA sophisticated definitely think taking kind we're we I there's remarks, think see So, serving that can kind dramatically following of policy need. the CMS and opening and are that meaningful think adjustment example most around risk equity our health purpose is that proposals way those in help making of intended in just another I impact some to in we referenced as the a that it's

that. kind example expect of just I another of don't other those But that's Anyone changes this accelerate. for give and proposals that. think types of I any

Yes, real quick, just quick.

spirit covered I caps routed in the bit which we've things to care think into in managed think brokerages. some plans, the it's dollars of regulation. different we past, the that to less you've as exposure is online bypass of provided sort had of from a about marketing as then are not couple broker built A up organizations organizations, obviously the that the main been we game, is, that's points. to Vivek of commissions, well, these marketing said, a use this talked And the been where to field on of the

the to that brokerages cost has electronic well terms have care pleased more of lead are seen, rapid been high by limited those as significantly particular see on as plans. churn to race per down. Vivek sold coming And as in from than electronic closing them to exposure the side very very to definitely But other too. a managed those Again, again, lead. top our we So alluded sources,

[indiscernible]. our our probably success we're with pleased I why prior think that's you -- saw in this

on, back at brokers, you some cycle markets, that were question, And like? field core enrollment with you markets. when not had the newer, learned open XXXX and with was I you but the just what Jersey success growth in what benefits, on your terms lessons sort guys just internally, Got of the newer New plan in out some resonating be is looking think the us? it. should that the follow-up not it's but Thanks. the have, at guess you legacy I of One of reflect that you've some look anything what for of And helpful do stories would consumers, the in design receptivity, looked say,

question. great Yes,

thoughts So I on this has after well, I Andrew as know, think some few. a

individuals zero, of readout transparent plans. just to our a been is conversations initial has from we've who MA a selling sort day from of think had from are it lot I the over organization, very

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people the investors. that that And seeing which is, now outcomes think razor seeing we're want. HML is so kind that accelerating, it's what what's investors of happening, point of some are to against where public getting I But kind of answer of market kind not we're that basically theme results only is into sometimes is surfacing just just simple

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Yes, absolutely.

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yet. I think some publicly can think I we we've don't share stats. them shared

about that. think we'll doing So

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that as our we tend going. as members upfront we -- build where when for to coverage our network our have the And are sorry, members it we see adequacy. are year, we out build So the then CA throughout doctors network data in see the our we seeing

core So trend Jersey what like places markets more markets. Georgia But seen New and the replicating in that's the in of we've well. we’re certainly on in as to that newer the share

Thanks, Andrew.

next Cassorla question from our take of Citi. Jason We'll

Good Great, guys. thanks. Great. for Thanks questions. taking evening, my

program terms of expansion DC beyond? you Just MA Thanks. of think new the kind for in inform help any states really that about there you XXXX like quickly, in around frame all? state and in at Or and the incremental can for county states how help will XX those you're you 'XX, that entering is way

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in extra in states had going XX states 'XX, to into XX an going Yes, XX XX you're but you're states, 'XX. in you're you states,

frame Just the help thinking states exposure. new will way thinking you're about with those about

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MA help I any counties just year-over-year talking new counties XXX the is over to way to you're on existing XXXX. that in for call growth XX% thanks. of XX% the on shipping That's average, there go really MA. delineate helpful. between Okay, to Maybe mean, attribution growth

anyway, would helpful. on consideration Thanks. Just that be

we I so Yes, remember what shared here. publicly can't

growth pacing along growth But the slides more we get how that that, New And been we're also Georgia absolutely we're that about showed along. happy. we've is New path seen counties, that So grow talked our we been conferences in we've can on make Jersey. always some Jersey I'll at in sure And we that definitely that with you this historical quite pleased have things very we've as like in is is, consistent say and core information. we've what then the

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about that. happy So we're pretty

latest replicating in just outsized the mean, but what XX,XXX think what's Thanks. kind relative before? New specifically expectations then coming jumping quickly I on me. around to around in thought drive follow-up for talked Just I in definitely comment in, growth the and helping really members did really Georgia. I quickly, a that's about Jersey, States. it of from know that enrollment maybe process around That’s you you're that Georgia, your Georgia into to shows

absolutely. Yes,

so very data And we're oriented.

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Calvin next JPMorgan. Sternick move to We'll of

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publicly on I little side. a we're Yes, in data think it's of, I think look the that up sense thing will, one the but the but we different a look, is set available now, bit MA

are a So New in of members percentage significant Jersey. our

look costs. at even XXXX, of Jersey, And XXXX, you divided York, you behind available and The ranked so just Medicare in New state of go look when at Medicare into year, January total per number and COVID to New the this publicly capita costs, of data, country, as highest capita back so you per by well. two

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know versus what going to year, and it's bit be we of that, assume a impact. last hold we Given a is don't lesson this little going year

thanks. Got it,

the portion. be to for At would I call the happy this Derrick to Reddit time, return Nueman

for Reddit time have a couple we questions. Great,

Clover The first announced will Vivek? CFL permanent question a when is

So got we have in great candidates. the meetings

as pretty months be Mark looking be over to we're outside really we're strong in time. the patient is we of with things same and pretty been he great patient think created great over the talent time team us pretty bar at of is choice done as about the with the the bring kind six has able some of and a choice. We're into with And couple we've year luxury few time creating a a think obviously of last on Right. us a Mark. organization high months we're our time, the for being the last someone CFO a being thinking has long to given And job, able room, well. from the a finance at I to same underneath, I

you possible looking to other at new what licensing question, Are pivots, expanding business for fee Next markets? software Andrew? healthcare service

Yes, I call a wouldn't so pivot.

software very for started of room places there's value be Medicare would our physician care, then based to Medicare And within MA, that within think using in to space to always a in to in TAM right we've comfortable is I make to But that to enable that it talked get platform we value based physicians able -- that now. fee think where service. goal lot for we're to that to there fee-for-service the the be trillion-dollar in where other about, is come a care are lot which of right? other perhaps their to Medicare. things, are like very with areas sense them do example, we brought Medicare I perhaps MA similar in enablement been plans, platform for enable Medicaid, adjacent us very to Our like for preeminent to successful, we've

while to top staying very of explore for and to building us current models on room of be plenty new able So our consistent, success.

question from you in to time given being to sign near we'll constraints, future. back Assistant turn then The for over what And our the closing are it up Clover added new remarks. Reddit, enhancements

so Yes, features. there are big features are small and there

So doing the is what doing is down always me like see iterating we're things. for to mind constantly just like, and everything to smallest of top tests

we're maybe own to at right stuff data be making in, from constantly making those it and that do, then to maybe that very for just sure something as to practice, that more stuff saying underneath that we to easy new two year. features we other that in things. their to We're launch to in able even or but we'll serve excited constantly we're three core I that’s didn't more integrations, use see available, aid of want come their pull our lab decision we're building making For to easier own that reports, physician that And data looking information probably to in that, access simple there's need. like where sub That's different we're making. what practices. or are they physicians trying from example, that, about points a of purpose times there's know, iterating major then CA. dozens build as particular But really new features And could the now,

Vivek? Great.

and growing today. really technology close, that's a again, there's mode, on a health OpEx if I making everyone's Clover because just good it and non-GAAP To our Derrick. this as things done non-cash appreciate you and place, of XXXX. profitable Thank we growth true what as year of our excluding a we on to a enabling our earlier, improvements, being revenues Thanks reiterating we non-recurring meaningful and is life. are improvements. summary, equity said on time positive while But just And drive maybe And ton we're a this everyone. year expenses further when of fall of is impact do percentage and in great into that, basis feel work expected mission a number margin Assistant of team, In next where possible expenses. really, about providing lowering particular, everyday our today, particularly improving even MCR,

This does program. today's conclude

lines day. your and disconnect a You great may have everyone now