Q1 2025 Elevance Health Inc Earnings Call Transcript
Key Points
- Elevance Health Inc (ELV) reported a strong start to 2025 with GAAP diluted earnings per share of $9.61 and adjusted diluted earnings per share of $11.97, reflecting over 10% year-over-year growth.
- The company expanded its value-based oncology care model to Medicare Advantage, following success in the commercial sector, which reduced inpatient admissions and improved treatment adherence.
- Carelon Services experienced significant growth, expanding relationships with external payers and launching new contracts in post-acute and behavioral health, validating its scalable platform for whole-person care.
- Elevance Health Inc (ELV) completed the acquisition of CareBridge, enhancing capabilities in home and community-based services, which helps reduce ER visits and institutional stays.
- The company maintained strong retention rates in Medicare Advantage, supporting both margin and membership sustainability, and expanded into three new states to build lifetime value through coordinated ACA and Medicaid coverage.
- Elevance Health Inc (ELV) faced elevated cost trends in its Medicaid business, impacting the consolidated benefit expense ratio, which increased by 80 basis points year over year.
- Individual ACA membership effectuation rates were lower than expected, leading to anticipated membership attrition in the mid-single-digit percent range in early Q2.
- The company experienced higher-than-expected flu-driven costs in Q1, impacting the benefit expense ratio by 15 to 20 basis points.
- Medicare Part D changes due to the Inflation Reduction Act resulted in a shift in earnings seasonality, with stronger financial performance expected in earlier quarters and lower margins later in the year.
- Elevance Health Inc (ELV) is navigating elevated utilization trends in Medicare Advantage, requiring careful management of new volume and targeted growth across specific populations and geographies.
Ladies and gentlemen, thank you for standing by and welcome to the Elevance Health first-quarter 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's first-quarter 2025 earnings call.
My name is Nathan Rich, Vice President of Investor Relations. With us this morning on the earnings call are Gail Boudreaux, President and CEO; Mark Kaye, our CFO; Pete Haytaian, 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 review of the progress we've made against our strategic initiatives and a discussion of our first quarter performance. Mark will then discuss our financial results and outlook in greater detail.
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