Elevance Second-Quarter Membership Declines Overshadow Full-Year Earnings Outlook Raise
Elevance Health (ELV) reported sequential and annual declines in its second-quarter memberships, although the health insurer lifted its full-year earnings outlook and recorded an unexpected year-over-year revenue increase in the previous three-month period. Total medical membership came in at 44.9 million for the June quarter, down 1% and 1.5% on sequential and annual bases, driven by a known commercial fee-based customer transition and attrition in the firm's individual Affordable Care Act and Medicaid membership. Elevance's shares dropped 8.8% in Wednesday trade, reducing its year-to-date gain to 10.9%. "Rate updates received during the quarter were higher than anticipated, and membership and acuity remained broadly aligned with our expectations," Chief Financial Officer Mark Kaye said during an earnings call, according to a FactSet transcript. Within the commercial risk-based business, individual membership decreased 2.3% from the prior-year quarter, while employer group fell 5.5%. "The Medicaid environment continues to be dynamic, and we're managing it with discipline," Chief Executive Gail Boudreaux said on the call. "We're improving our ability to detect cost.
Elevance Health (ELV) reported sequential and annual declines in its second-quarter memberships, although the health insurer lifted its full-year earnings outlook and recorded an unexpected year-over-year revenue increase in the previous three-month period.
Total medical membership came in at 44.9 million for the June quarter, down 1% and 1.5% on sequential and annual bases, driven by a known commercial fee-based customer transition and attrition in the firm's individual Affordable Care Act and Medicaid membership.
Elevance's shares dropped 8.8% in Wednesday trade, reducing its year-to-date gain to 10.9%. "Rate updates received during the quarter were higher than anticipated, and membership and acuity remained broadly aligned with our expectations," Chief Financial Officer Mark Kaye said during an earnings call, according to a FactSet transcript.
Within the commercial risk-based business, individual membership decreased 2.3% from the prior-year quarter, while employer group fell 5.5%. "The Medicaid environment continues to be dynamic, and we're managing it with discipline," Chief Executive Gail Boudreaux said on the call. "We're improving our ability to detect cost.