MM Curator summary
The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.
[MM Curator Summary]: There is lots of profit in Medicaid; you just have to know how to extract it.
Elevance Health reported $949 million in fourth quarter profits as the health insurer formerly … [+] known as Anthem continued to grow its national portfolio of medical and prescription drug benefits.
Elevance Health
Elevance Health reported $949 million in fourth quarter profits as the health insurer benefitted from higher premiums and growth in Medicaid coverage for poor Americans and Medicare Advantage for seniors.
Elevance, which operates an array of government and commercial health insurance including Blue Cross and Blue Shield plans in 14 states, Wednesday reported fourth quarter profits dipped 16.5% to $949 million, or $3.93 per share, compared to $1.1 billion, or $4.63 per share, in the year ago quarter. Revenue jumped 9% to $39.9 billion compared to $36.6 billion a year ago.
“Last year marked the fifth consecutive year in which we met or exceeded our long-term adjusted earnings per share growth target, and we are well-positioned to do it again in 2023,” Elevance Health president and chief executive officer Gail K. Boudreaux said.
Elevance’s membership grew by 2.2 million, or 4.8%, to 47.5 million as of December 31, 2022 compared to a year ago driven by growth of government business, particularly Medicaid. “During the fourth quarter of 2022, medical membership increased by 248 thousand driven by organic growth in Medicaid, which we attribute primarily to the suspension of eligibility recertification, as well as the acquisition of Vivida Health, which added 29 thousand Medicaid members,” Elevance said in its earnings report.
Elevance’s profits and continued growth are figured in the company’s forecast for increased profits and revenues for the new year, 2023, with adjusted net income expected to be “greater than $32.60” per share.
Earlier this week, Elevance Health said it will expand its portfolio of Anthem brand health plans by buying Blue Cross and Blue Shield of Louisiana for an undisclosed sum.
The deal announced Monday will bring 1.9 million health plan customers and another state market to Elevance Health’s family of affiliated Anthem Blue Cross Blue Shield branded health insurance plans. Louisiana will become the 15th state where the Anthem Blue Cross brand of health insurance will be sold once Elevance’s purchase closes later this year.