Elevance Health, Inc. (NYSE:ELV) Q1 2023 Earnings Conference Call April 19, 2023 8:30 AM ET Company Participants Steve Tanal - Vice President, Investor Relations Gail Boudreaux - President & Chief Executive Officer John Gallina - Chief Financial Officer Peter Haytaian - President of Carelon Morgan Kendrick - President of Commercial & Specialty Health Benefits Division Felicia Norwood - President of Government Health Benefits Division Conference Call Participants Justin Lake - Wolfe Research A.J. Rice - Cred ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-16751 ELEVANCE HEALTH, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

Revenue Sources - Approximately 28% of total consolidated revenues were generated from U.S. government agencies for the years ended December 31, 2022, 2021, and 2020[24]. - The company expects a decline in Medicaid membership starting April 1, 2023, due to states removing ineligible beneficiaries from their Medicaid programs[80]. - The Inflation Reduction Act of 2022 extends enhanced Premium Tax Credits through 2025, likely supporting growth in Individual exchange market enrollment[81]. Market Participation and Product Offerings - The company expanded its participation in the Public Exchange market for 2023, offering Individual Public Exchange products in 138 of the 143 rating regions, up from 122 in 2022[33]. - The company is restructuring its reportable segments, combining Commercial & Specialty Business and Government Business into a new segment called Health Benefits starting January 1, 2023[29]. - The company’s Medicare Advantage plans offer tailored benefits to special needs individuals and include a variety of options for individuals aged 65 and older[39]. - CarelonRx, the company's PBM subsidiary, provides comprehensive PBM services, including formulary management and pharmacy networks, to both affiliated and external customers[41]. - Carelon Services offers a wide range of healthcare services, including integrated care delivery and behavioral health management[43]. Customer Engagement and Service Quality - The company focuses on enhancing customer interactions through digital technology and operational improvements, optimizing administrative costs while improving service quality[23]. - The company has expanded its integrated care management programs, including the digital engagement platform Sydney Health, to enhance member experience[66]. - CarelonRx's behavioral health case management program supports members with various conditions, promoting access to appropriate treatment[67]. - The company is recognized for its quality healthcare initiatives, focusing on effective, safe, and equitable care[68]. Financial Performance and Cash Management - Net cash provided by operating activities for the year ended December 31, 2022, was $8,399 million, a slight increase of $35 million compared to $8,364 million in 2021[356]. - Total sources of cash decreased by $1,081 million from $11,286 million in 2021 to $10,205 million in 2022[356]. - Total uses of cash decreased by $4,453 million from $12,137 million in 2021 to $7,684 million in 2022[356]. - The net increase in cash and cash equivalents for 2022 was $2,507 million, compared to a decrease of $861 million in 2021[356]. - Cash dividends paid in 2022 amounted to $1,229 million, an increase of $125 million from $1,104 million in 2021[356]. - The company aims to manage its cash, investments, and capital structure to meet both short-term and long-term obligations while maintaining financial flexibility[353]. Regulatory Compliance and Risk Management - The company is subject to comprehensive state, federal, and international regulations that impact its operations and cost structure[75]. - Federal regulations require the company to disclose detailed pricing information on a monthly basis starting July 2022, with further requirements expanding in 2023[100]. - The company is subject to various federal and state regulations that could materially affect its PBM business, including proposals to regulate drug rebates and pricing[92]. - The company is required to pay an annual license fee to the BCBSA based on enrollment and must comply with various operational requirements[73]. Workforce and Diversity - The company has a workforce of approximately 102,300 employees as of December 31, 2022, with 79,000 in the United States and 23,300 internationally[105]. - The U.S. associate population is approximately 77% female and 51% racially and ethnically diverse as of December 31, 2022[106]. - The company has been certified by the Fair Pay Workplace, indicating that pay for females is within 1% of their male counterparts[107]. - The company is actively monitoring and responding to associate feedback through engagement surveys and online tools[105]. Strategic Initiatives and Future Outlook - The company promotes appropriate care through its AIM Specialty Health subsidiary, focusing on areas like imaging and oncology drugs[69]. - The company anticipates growth in its Commercial risk-based and fee-based plans and Medicare as members exit Medicaid[80]. - The company has developed in-home assessment programs to identify healthcare quality gaps among its members[70]. - CarelonRx's pricing strategy is based on predictive modeling and aims to remain competitive while addressing anticipated medical trends[47]. - The company employs a multi-year contracting strategy with providers to limit exposure to medical cost inflation and enhance cost predictability[57].

Financial Data and Key Metrics Changes - Elevance Health reported fourth quarter adjusted earnings per share of $5.23, exceeding expectations, leading to a full-year adjusted earnings per share of $29.7, reflecting over 15% year-over-year growth from an adjusted baseline of $25.20 in 2021 [10][23][34] - Total operating revenue for the year reached nearly $156 billion, an increase of approximately 14% over the prior year, driven by solid growth in health benefits businesses and Carelon [12][36] - The SG&A expense ratio improved to 11.5% in the fourth quarter and 11.4% for the full year, reflecting a 20 basis points improvement [1][43] Business Line Data and Key Metrics Changes - Medical membership grew by 248,000 members in the fourth quarter, totaling 47.5 million members by year-end, with organic growth comprising over 85% of the increase [11][35] - Carelon's revenue grew by 12% and Carelon services by 27% over 2021, contributing to the overall revenue growth [13][36] - The company added 1.1 million net new commercial members and 1.1 million net new government members for the full year [12][35] Market Data and Key Metrics Changes - The company anticipates growth in medical membership despite commercial repricing and Medicaid redeterminations, with commercial risk-based membership expected to increase by over 200,000 in 2023 [31][32] - Medicaid membership is projected to end the year in the range of 10.8 million to 11.3 million, reflecting anticipated attrition due to eligibility redeterminations [33][42] Company Strategy and Development Direction - Elevance Health is transforming into a lifetime trusted health partner, focusing on optimizing health benefits businesses and expanding Carelon's service capabilities [22][50] - The company plans to disclose Carelon as a separate business division starting in Q1 2023, reflecting its commitment to expanding the scale and scope of services [15][37] - The strategic acquisition of Blue Cross and Blue Shield of Louisiana is expected to enhance community impact and align with Elevance's mission [70][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in margin recovery for commercial and Medicare businesses, which is expected to offset member attrition in the Medicaid business [8][30] - The outlook for 2023 includes anticipated growth in adjusted earnings per share of greater than $32.60, reflecting over 12% year-over-year growth [38][44] - Management acknowledged ongoing uncertainties related to Medicaid redeterminations and macroeconomic conditions but remains optimistic about the company's resilience [9][33] Other Important Information - The consolidated medical loss ratio is expected to be 87.2% in 2023, an improvement of approximately 20 basis points compared to 2022 [42] - The company plans to repurchase approximately $2 billion in shares and has approved a 16% increase in its quarterly dividend [49][45] Q&A Session Summary Question: Can you talk about the growth in the services business and partnerships? - Management highlighted the strong momentum in Carelon and the focus on whole health and improving patient experience through partnerships [55][60] Question: Can you provide insights on the Blue Cross Blue Shield of Louisiana acquisition? - Management expressed excitement about the strategic acquisition, emphasizing alignment with Elevance's mission and community impact [70][72] Question: What are the expectations for commercial and Medicaid margins? - Management confirmed ongoing margin recovery in commercial and Medicare segments, with Medicaid margins expected to remain within the 2% to 4% range [82][84] Question: What are the trends in value-based care? - Management noted increased interest in sharing both upside and downside risk in value-based care arrangements, with a focus on timely data sharing [131][132]

Elevance Health Inc. (NYSE:ELV) Q3 2022 Earnings Conference Call October 19, 2022 8:30 AM ET Company Participants Steve Tanal – Vice President-Investor Relations Gail Boudreaux – President and Chief Executive Officer John Gallina – Chief Financial Officer Morgan Kendrick – President-Commercial and Specialty Business Division Peter Haytaian – President-Carelon Felicia Norwood – President-Government Business Division Conference Call Participants A.J. Rice – Credit Suisse Lance Wilkes – Bernstein Scott Fidel – ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-16751 ELEVANCE HEALTH, INC. (Exact name of registrant as specified in its charter) Indiana 35-2145715 (State or other juris ...

Elevance Health Inc. (NYSE:ELV) Q2 2022 Earnings Conference Call July 20, 2022 8:30 AM ET Company Participants Steve Tanal - Vice President, Investor Relations Gail Boudreaux - President and Chief Executive Officer John Gallina - Chief Financial Officer Peter Haytaian - President, Carillon Morgan Kendrick - President, Commercial & Specialty Business Division Felicia Norwood - President, Government Business division Conference Call Participants A.J. Rice - Credit Suisse Justin Lake - Wolfe Research Lance Wil ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-16751 ELEVANCE HEALTH, INC. (Exact name of registrant as specified in its charter) Indiana 35-2145715 (State or other jurisdicti ...

Anthem, Inc. (ANTM) Q1 2022 Results Conference Call April 20, 2022 8:30 AM ET Company Participants Steve Tanal - Vice President of Investor Relations Gail Boudreaux - President & Chief Executive Officer John Gallina - Chief Financial Officer Peter Haytaian - President of Diversified Business Group & IngenioRx Morgan Kendrick - President of Commercial business and Specialty Business Division Felicia Norwood - President of Government Business Division Conference Call Participants Scott Fidel - Stephens Justin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-16751 ANTHEM, INC. (Exact name of registrant as specified in its charter) Indiana 35-2145715 (State or other jurisdiction of in ...