Q2 2024 Elevance Health Inc Earnings Call Transcript
Key Points
- Elevance Health Inc (ELV) reported adjusted diluted earnings per share of $10.12, reflecting a 12% growth year over year.
- The company reaffirmed its full-year guidance of at least $37.20, representing 12% growth year over year.
- Elevance Health Inc (ELV) demonstrated strong membership growth in its individual ACA business and high retention levels in national accounts.
- The company secured significant new business wins and re-procurements in Medicaid, positioning it for future growth.
- Carelon services delivered robust growth in operating revenue and earnings, gaining traction with external clients through new business wins and expansion of risk-based services.
- Elevance Health Inc (ELV) experienced attrition in its Medicaid membership by 354,000 lives year over year.
- The company is navigating industry-wide dynamics in its Medicaid business, including increased acuity and administrative challenges in redeterminations.
- Elevance Health Inc (ELV) reported a consolidated benefit expense ratio of 86.3%, with increased acuity in Medicaid partially offsetting improvements.
- The adjusted operating expense ratio increased by 50 basis points to 11.5% in the second quarter, driven by elevated investment costs in CarelonRx.
- The company anticipates higher Medicaid utilization in the second half of the year, which may impact its benefit expense ratio.
Ladies and gentlemen, thank you for standing by, and welcome to our second quarter Elevance Health Inc earnings conference call. (Operator Instructions) As a reminder, today's conference is being recorded.
I would now like to turn the conference over to the company's management. Please go ahead.
Good morning, and welcome to Elevance Health second quarter 2024 earnings call. This is Steve Tanal, Vice President of Investor Relations. And with us this morning on the earnings call are Gail Boudreaux, President and CEO; Mark Kaye, our CFO; Pete Haytaian, President of President of Carelon; Morgan Kendrick, President of our Commercial Health Benefits business; and Felicia Norwood, President of our government health benefits business.
Gail will begin the call with a brief discussion of the quarter and recent progress against our strategic initiatives. Mark will then discuss our financial results and outlook in greater detail. After our prepared remarks, the team will be
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