Revenue Growth and Medicare Advantage Performance
Elevance Health reported total operating revenue of $50.1 billion, up 12% year-over-year, driven by higher premium yields, recently closed acquisitions, and Medicare Advantage membership growth.
Carelon's Strong Momentum
Carelon exhibited strong performance with Carelon Rx revenue growing 20% year-over-year and Carelon Services growing by more than 50%, reflecting robust organic growth and integration efforts.
AI and Technology Investments
Investments in AI and technology are expected to drive efficiency, improve affordability, and enhance member and provider experiences across the Elevance Health platform.
Stable Medicare Advantage Margins
Medicare Advantage costs were marginally better than expected, with a potential for slight improvement in operating margin for 2025, supported by disciplined plan design and member composition.
Improved Star Ratings
For the 2027 payment year, approximately 55% of MA members will be in 4-star or higher contracts, including three 5-star contracts, up from about 40% for payment year 2026.