Elevance Health Earnings Rise With Uptick in Premiums, Enrollment
Elevance Health, the healthcare heavyweight which owns Blue Cross Blue Shield, is dealing with double-digit growth in its costs. Photo: Michael Conroy/Associated Press By Dean Seal April 19, 2023 7:15 am ET Inc. reported stronger revenue and earnings in the first quarter as growing premiums continued to outpace rising costs. The health insurer and Blue Cross Blue Shield owner, formerly known as Anthem Inc., said operating revenue grew more than 10% to $41.9 billion. Analysts had been expecting $40.92 billion, according to FactSet. Elevance’s top line was lifted by higher premium revenue from membership growth in Medicaid and Medicare Advantage, along with premium-rate increases in its health-benefits business and higher pharmacy-product revenue from its Carelon
Elevance Health, the healthcare heavyweight which owns Blue Cross Blue Shield, is dealing with double-digit growth in its costs.
Photo: Michael Conroy/Associated Press
By
The health insurer and Blue Cross Blue Shield owner, formerly known as Anthem Inc., said operating revenue grew more than 10% to $41.9 billion. Analysts had been expecting $40.92 billion, according to FactSet.
Elevance’s top line was lifted by higher premium revenue from membership growth in Medicaid and Medicare Advantage, along with premium-rate increases in its health-benefits business and higher pharmacy-product revenue from its CarelonRx unit.
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Subscribe NowThe company’s profit was $200 million higher at $1.99 billion, or $8.30 a share. Stripping out one-time items, adjusted earnings were $9.46 a share, topping analyst expectations for $9.29 a share.
Total premiums were up 9.4%, mimicking their growth last quarter, as a result of rising rates, as well as more Medicaid and Medicare Advantage plan members.
Elevance is dealing with double-digit growth in its costs, too, though its benefit-expense ratio, a measure of medical costs as a percentage of premium revenue, declined slightly from a year ago to 85.8%.
The company said it now expects earnings of $29.50 a share for the year, down 30 cents a share from its previous guidance. Meanwhile, it slightly increased its adjusted earnings outlook to $32.70 a share.
Indianapolis-based Elevance is the second healthcare heavyweight to report earnings for the first quarter, following Inc.’s report last week of higher revenue and earnings. UnitedHealth raised its full-year earnings forecast despite rising medical costs and noted an increase in spending tied to the diabetes and weight-loss drug category, which includes AS’s Ozempic.
Anthem last year changed its name to rebrand as a company with a focus broader than health benefits.
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Write to Dean Seal at [email protected]
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