Elevance Health(ELV)2023-02-14 16:00Revenue 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 35 million compared to 1,081 million from 10,205 million in 2022[356]. - Total uses of cash decreased by 12,137 million in 2021 to 2,507 million, compared to a decrease of 1,229 million, an increase of 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].