Anthem Inc

**Adjusted EPS and Revised Outlook**: Elevance Health reported adjusted diluted earnings per share (EPS) of $8.37 for Q3 2024, below expectations due to elevated medical costs in the Medicaid segment. The company's full-year adjusted EPS outlook has been reduced to approximately $33, reflecting challenges in the Medicaid business and higher-than-anticipated cost trends, now expected to be 3x to 5x historical averages.

**Medicaid Business Challenges**: The Medicaid managed care segment experienced a drastic increase in cost trends due to an unprecedented mix shift resulting from the end of the public health emergency and the ongoing redetermination process. This caused membership acuity to rise sharply, affecting profitability; however, the company expects improvements as states adjust rates to reflect the true acuity of members over time.

**Growth in Other Segments**: Despite Medicaid challenges, Elevance Health's commercial segments and Medicare Advantage are performing well, with commercial membership growing by nearly 600,000 year-over-year. The company expects 2025 individual Medicare Advantage membership growth to be in line or slightly better than the broader market due to strategic positioning and product offerings.