Elevance Health’s earnings call for the third quarter of 2024, ending on September 30, was held on October 17, 2024, at 8:30 a.m. ET. The agenda for the call included prepared remarks, a question-and-answer session, and a list of call participants. The conference was initiated by the operator, who welcomed the attendees and reminded them of the guidelines for the call, including the Q&A session and recording of the conference.
Steve Tanal, the Vice President of Investor Relations, introduced the company’s leadership team who were present on the call: Gail Boudreaux, President and CEO; Mark Kaye, CFO; Pete Haytaian, President of Carelon; Morgan Kendrick, President of the Commercial Health Benefits Business; and Felicia Norwood, President of the Government Health Benefits Business. Gail Boudreaux began the discussion by reviewing the financial results for the quarter and addressed the company’s revised outlook for the year. The major highlight was the adjusted diluted earnings per share amounting to $8.37, which fell short of expectations due to increased medical costs in the Medicaid business. The impact was being mitigated by various strategic measures, including medical management and operational efficiency enhancements.
Boudreaux emphasized the long-term strategy of investing in Elevance Health’s capabilities to ensure sustainable growth and highlighted the positive developments in different segments such as Medicare, commercial health benefits, and Carelon services. Despite the challenging environment, she expressed the company’s confidence in the durability of these strategies and the fruitful partnerships with state bodies to address Medicaid rate adjustments.
Mark Kaye, the CFO, provided a detailed financial outlook and emphasized that despite the lower-than-expected earnings per share, the underlying business remained robust. He mentioned the significant growth in the commercial sector and steady operating revenue growth, despite the elevated expenses. Kaye reassured stakeholders about the company’s fiscal strategies to maintain stable reserves and manage benefit expense ratios.
The session concluded with responses to analysts’ questions addressing concerns about Medicaid trends, rate adjustments, and various operational strategies across different business lines. The leadership expressed confidence in managing current challenges while continuing to focus on long-term strategic goals.
