Anthem Inc

Strong Q1 Performance: Elevance Health reported GAAP diluted earnings per share of $9.61 and adjusted diluted earnings per share of $11.97, reflecting over 10% year-over-year growth. Operating revenue increased by 15% to $48.8 billion, primarily driven by higher premium yields and growth in Medicare Advantage and Individual ACA membership.

Membership and Retention Metrics: The company ended Q1 with 45.8 million medical members, an increase of 99,000 from the previous year, driven by strong retention rates in Medicare Advantage. However, Individual ACA membership grew at only 11% sequentially with anticipated moderation in Q2 due to lower effectuation rates among renewing members.

Challenges with Medicaid: Elevated costs in the Medicaid segment continued, leading to a higher consolidated benefit expense ratio of 86.4%, up 80 basis points year-over-year. While rate adjustments in Medicaid are in progress, the need for proper reimbursement alignment remains a challenge.