Elevance Health Reports Strong Q2 2024 Results Despite Medicaid Membership Attrition

Strategic Insights -

Elevance Health, Inc., a leading health insurer, announced its second-quarter 2024 results, showcasing a decline in operating revenue of $0.2 billion compared to the prior year quarter, primarily attributed to Medicaid membership attrition. Despite this, the company reported an adjusted operating gain of $2.8 billion and diluted EPS of $9.85, up 26%. The benefit expense ratio improved to 86.3%, driven by premium rate adjustments to cover medical cost trend and disciplined commercial underwriting.

Key Takeaways:

  • Operating revenue decreased by $0.2 billion to $43.2 billion in Q2 2024, primarily due to Medicaid membership attrition.
  • Benefit expense ratio improved to 86.3%, driven by premium rate adjustments to cover medical cost trend and disciplined commercial underwriting.
  • Days in Claims Payable decreased to 45.3 days as of June 30, 2024, a decline of 3.7 days from March 31, 2024.
  • Operating expense ratio increased to 11.7%, driven by targeted investment and integration costs, and an 8% increase in operating gain for Carelon.
  • Full-year guidance for GAAP net income per diluted share remains at $34.05, and adjusted diluted net income per share at $37.20.
  • Elevance Health repurchased 0.9 million shares of its common stock for $462 million and paid a quarterly dividend of $1.63 per share.
  • As of June 30, 2024, the company had approximately $3.2 billion in Board-approved share repurchase authorization remaining.

Statistics:

  • Operating revenue: $43.2 billion (Q2 2024), $0.2 billion decrease compared to prior year quarter
  • Benefit expense ratio: 86.3% (Q2 2024), improved by 10 basis points
  • Days in Claims Payable: 45.3 days (as of June 30, 2024), a decrease of 3.7 days from March 31, 2024
  • Operating expense ratio: 11.7% (Q2 2024), an increase of 60 basis points
  • Share repurchase: 0.9 million shares for $462 million (Q2 2024)

Sources:

  • Elevance Health official press release, July 17 (referred to as "Original Press Release" in the source)
  • Elevance Health's financial reports and SEC filings