FALSE000115603900011560392024-07-172024-07-17

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

July 17, 2024
Date of Report (Date of earliest event reported)
___________________________________
Elevance Health, Inc.
(Exact name of registrant as specified in its charter)
___________________________________

Indiana
(State or other jurisdiction of
incorporation or organization)
001-16751
(Commission File Number)
35-2145715
(I.R.S. Employer Identification Number)
220 Virginia Ave
Indianapolis, IN 46204
(Address of principal executive offices and zip code)
(833) 401-1577
(Registrant's telephone number, including area code)
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, Par Value $0.01ELVNYSE
Indicate by check mark whether the registrant is an emerging growth company as defined Rule 405 of the Securities Act (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act (§240.12b-2 of this chapter).
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 - Results of Operations and Financial Condition.

On July 17, 2024, Elevance Health, Inc. issued a press release reporting its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

None of the information furnished in Item 2.02 or Exhibit 99.1 hereto shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. Unless expressly set forth by specific reference in such filings, none of the information furnished in this report shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.Exhibit
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
FORWARD-LOOKING STATEMENTS    

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including


those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; the effects of any negative publicity related to the health benefits industry in general or us in particular; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.     


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 17th day of July, 2024.



ELEVANCE HEALTH, INC.
By:
/s/ Kathleen S. Kiefer
Name:
Kathleen S. Kiefer
Title:
Chief Governance Officer and Corporate Secretary


E A R N I N G S R E L E A S E

elevancehealth.jpg
ELEVANCE HEALTH REPORTS SECOND QUARTER 2024 RESULTS

•2Q 2024 operating revenue of $43.2 billion
•2Q 2024 adjusted operating gain1 of $2.8 billion
•2Q 2024 diluted EPS2 of $9.85, up 26%; adjusted diluted EPS1 of $10.12, up 12%
•3Q 2024 dividend of $1.63 per share declared to shareholders

Indianapolis, IN - July 17, 2024 - Elevance Health, Inc. (NYSE: ELV) reported second quarter 2024 results.

“Second quarter results reflect the power of our diversified business and thoughtful execution of our strategic initiatives during a dynamic time for our industry, as we remain steadfast in our purpose to improve the health of humanity. We have prudently maintained our full-year outlook and are confident in the earnings power of our Health Benefits and Carelon businesses, which underpin our long-term targets.”
Gail K. Boudreaux
President and Chief Executive Officer


1.Refer to GAAP reconciliation tables on pages 13 and 14 herein for reconciliation of GAAP to adjusted measures.
2.Earnings per diluted share ("EPS").

1

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Elevance Health
Consolidated Enterprise Highlights
(Unaudited)
(In billions)Three Months Ended
June 30, 2024June 30, 2023March 31, 2024
Operating Revenue1
$43.2$43.4$42.3
Operating Gain1,2
$2.8$2.6$3.0
Operating Margin1
6.4 %6.1 %7.1 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three months ended June 30, 2024, and June 30, 2023, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.

Operating revenue was $43.2 billion in the second quarter of 2024, a decrease of $0.2 billion compared to the prior year quarter. This decrease was driven by attrition in Medicaid membership, partially offset by higher premium yields to reflect medical cost trend, and growth in CarelonRx product revenue related to members served.
The benefit expense ratio was 86.3 percent, an improvement of 10 basis points, driven primarily by premium rate adjustments to cover medical cost trend in our Health Benefits business and disciplined commercial underwriting. Days in Claims Payable was 45.3 days as of June 30, 2024, a decrease of 3.7 days from March 31, 2024, including a 1.7 day decline related to industry-wide delays earlier this year in claims receipts, and a decrease of 1.2 days compared to June 30, 2023, principally on improved operational efficiency.
The operating expense ratio was 11.7 percent, an increase of 60 basis points driven by targeted investment and integration costs. Excluding adjustment items, the operating expense ratio was 11.5 percent, an increase of 50 basis points.
Elevance Health expects GAAP net income per diluted share to be at least $34.05 in 2024, and adjusted diluted net income per share to be at least $37.20.
Cash Flow & Balance Sheet
Operating cash flow was $2.4 billion year-to-date, a decrease of $6.0 billion year-over-year, including $4.3 billion of timing-related items and $1.3 billion of net cash outflows associated with medical claims payable, principally due to lower Medicaid membership. As of June 30, 2024, cash and investments at the parent company totaled approximately $2.4 billion.
During the second quarter of 2024, the Company repurchased 0.9 million shares of its common stock for $462 million, at a weighted average price of $524.55, and paid a quarterly dividend of $1.63 per share, representing a distribution of cash totaling $378 million. As of June 30, 2024, the Company had approximately $3.2 billion of Board approved share repurchase authorization remaining.
2

abs_rxhxrgbxcxaligned.jpg wlp_rxhxrgbxcxaligned.jpg
Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Health Products & Services businesses.
Health Benefits
Reportable Segment Highlights
(Unaudited)
(In billions)
Three Months Ended
June 30, 2024June 30, 2023March 31, 2024
Operating Revenue1
$37.2$38.0$37.3
Operating Gain1,2
$2.1$2.1$2.3
Operating Margin1
5.8 %5.6 %6.1 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three months ended June 30, 2023, has been restated for the realignment of Carelon Global Solutions. See footnote 2 to the Reportable Segment Highlight Details table on page 11.

Health Benefits segment operating revenue was $37.2 billion in the second quarter of 2024, a decrease of 2 percent compared to the prior year quarter, as Medicaid membership attrition was only partially offset by premium rate increases to reflect medical cost trends, and growth in Individual Affordable Care Act health plan membership.
Operating gain totaled $2.1 billion, which was unchanged compared to the prior year.
Medical membership totaled approximately 45.8 million as of June 30, 2024, a decrease of 2.2 million, or 5 percent compared to the prior year quarter, driven by attrition in our Medicaid business associated with eligibility redeterminations and footprint adjustments, primarily in the first quarter. These losses were partially offset by growth in our Affordable Care Act health plans and commercial Employer Group fee-based membership.

3


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Carelon is comprised of CarelonRx and Carelon Services.
Carelon
Reportable Segment Highlights
(Unaudited)
(In billions)
Three Months Ended
June 30, 2024June 30, 2023March 31, 2024
Operating Revenue1,2
$13.3$12.1$12.1
Operating Gain1,2
$0.7$0.7$0.8
Operating Margin1
5.3 %5.4 %6.7 %
1.See “Basis of Presentation” on page 5 herein.
2.For the Operating Revenue and Operating Gain of CarelonRx and Carelon Services for the three months ended June 30, 2024, and June 30, 2023, see the Reportable Segment Highlight Details table on page 11, which has been restated for the realignment of Carelon Global Solutions. See footnote 2 on page 11 for details.

Operating revenue for Carelon was $13.3 billion in the second quarter of 2024, an increase of $1.2 billion, or 10 percent compared to the prior year quarter. This increase was driven by the launch and growth of risk-based medical benefit and behavioral health management services in Carelon Services, as well as growth in CarelonRx product revenue related to external members served and the acquisition of Paragon Healthcare in the first quarter.
Operating gain for Carelon totaled $0.7 billion, an increase of $52 million, or 8 percent, primarily driven by improved performance on risk-based arrangements in Carelon Services.
4

Quarterly Dividend
On July 16, 2024, the Audit Committee of the Company's Board of Directors declared a third quarter 2024 dividend to shareholders of $1.63 per share. The third quarter dividend is payable on September 25, 2024, to shareholders of record at the close of business on September 10, 2024.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve over 113 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s second quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:
888-947-9963 (Domestic)
800-391-9851 (Domestic Replay)
312-470-0178 (International)
203-369-3268 (International Replay)
The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on August 16, 2024. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.
Basis of Presentation
1.Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to pages 13 and 14 for the GAAP reconciliation tables.
2.Operating margin is defined as operating gain divided by operating revenue.
Elevance Health Contacts:
Investor Relations            
Media
Stephen TanalLeslie Porras
Investor.Relations@elevancehealth.com
Leslie.Porras@elevancehealth.com
5

Elevance Health
Earnings Release Financial Schedules and Supplementary Information
Quarter & Year-to-Date Ended June 30, 2024

•Membership and Other Metrics
•Quarterly & Year-to-Date Consolidated Statements of Income
•Condensed Consolidated Balance Sheet
•Condensed Consolidated Statement of Cash Flows
•Supplemental Financial Information - Reportable Segments
•Supplemental Financial Information - Reconciliation of Medical Claims Payable
•Reconciliation of Non-GAAP Financial Measures

6

Elevance Health
Membership and Other Metrics
(Unaudited)
 Change from
Medical Membership (in thousands)June 30, 2024June 30, 2023March 31, 2024June 30, 2023March 31, 2024
Individual1,281 949 1,246 35.0 %2.8 %
Employer Group Risk-Based3,648 3,765 3,648 (3.1)%— %
Commercial Risk-Based4,929 4,714 4,894 4.6 %0.7 %
BlueCard®1
6,692 6,720 6,635 (0.4)%0.9 %
Employer Group Fee-Based20,542 20,160 20,622 1.9 %(0.4)%
Commercial Fee-Based27,234 26,880 27,257 1.3 %(0.1)%
Medicare Advantage2,031 2,059 2,017 (1.4)%0.7 %
Medicare Supplement894 926 896 (3.5)%(0.2)%
Total Medicare2,925 2,985 2,913 (2.0)%0.4 %
Medicaid9,028 11,759 9,327 (23.2)%(3.2)%
Federal Employees Health Benefits1,660 1,634 1,658 1.6 %0.1 %
Total Medical Membership45,776 47,972 46,049 (4.6)%(0.6)%
Other Membership (in thousands)
Dental Members7,008 6,728 6,970 4.2 %0.5 %
Dental Administration Members1,851 1,694 1,841 9.3 %0.5 %
Vision Members10,275 9,850 10,251 4.3 %0.2 %
Medicare Part D Standalone Members260 263 262 (1.1)%(0.8)%
Other Metrics (in millions)
CarelonRx Quarterly Adjusted Scripts78.2 77.4 77.0 1.0 %1.6 %
Carelon Services Consumers Served102.3 103.6 102.9(1.3)%(0.6)%
1.BlueCard® membership for the three months ended June 30, 2023, and March 31, 2024, are restated to align to the Blue Cross Blue Shield Association reporting methodology. For the three months ended June 30, 2023, and the three months ended March 31, 2024, BlueCard® membership has been restated lower by 17 and 190, respectively.
7

Elevance Health
Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)Three Months Ended 
 June 30		Six Months Ended 
 June 30
20242023Change20242023Change
Revenues
Premiums
$35,416$36,589(3.2)%$71,112$72,457(1.9)%
Product revenue5,5304,85913.8%10,0298,88112.9%
Service fees2,2771,92918.0%4,3553,93710.6%
Total operating revenue43,22343,377(0.4)%85,49685,2750.3%
Net investment income50841622.1%97380321.2%
Net losses on financial instruments(85)(121)NM(246)(234)NM
Gain on sale of business
240—NM240—NM
Total revenues43,88643,6720.5%86,46385,8440.7%
Expenses
Benefit expense30,57231,604(3.3)%61,11862,390(2.0)%
Cost of products sold4,8204,32711.4%8,6457,80810.7%
Operating expense5,0664,8185.1%9,9529,6183.5%
Interest expense2802617.3%5455126.4%
Amortization of other intangible assets162221(26.7)%278456(39.0)%
Total expenses40,90041,231(0.8)%80,53880,784(0.3)%
Income before income tax expense2,9862,44122.3%5,9255,06017.1%
Income tax expense68558517.1%1,3751,20014.6%
Net income2,3011,85624.0%4,5503,86017.9%
Net income attributable to noncontrolling interests
(1)(3)NM(4)(18)NM
Shareholders' net income$2,300$1,85324.1%$4,546$3,84218.3%
Shareholders' earnings per diluted share
$9.85$7.7926.4%$19.44$16.1020.7%
Diluted shares233.4237.8(1.9)%233.8238.7(2.1)%
Benefit expense as a percentage of premiums86.3 %86.4 %(10)bp85.9 %86.1 %(20)bp
Operating expense as a percentage of total operating revenue11.7 %11.1 %60 bp11.6 %11.3 %30 bp
Income before income tax expense as a percentage of total revenue6.8 %5.6 %120 bp6.9 %5.9 %100 bp

"NM" = calculation not meaningful
8

Elevance Health
Condensed Consolidated Balance Sheet
(In millions)June 30,
2024		December 31,
2023
Assets(Unaudited)
Current assets:
Cash and cash equivalents$6,497 $6,526 
Fixed maturity and equity securities29,494 29,843 
Premium and other receivables19,218 17,865 
Other current assets6,464 5,795 
Assets held for sale
601 $— 
Total current assets62,274 60,029 
Long-term investments7,659 6,983 
Property and equipment, net4,450 4,359 
Goodwill and other intangible assets36,409 35,590 
Other noncurrent assets2,196 1,967 
Total assets$112,988 $108,928 
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable$15,204 $16,111 
Short-term borrowings225 225 
Current portion of long-term debt2,900 1,649 
Other current liabilities23,319 23,806 
Liabilities held for sale
165 $— 
Total current liabilities41,813 41,791 
Long-term debt, less current portion24,561 23,246 
Other noncurrent liabilities4,317 4,486 
Total liabilities70,691 69,523 
Total shareholders’ equity42,191 39,306 
Noncontrolling interests106 99 
Total equity42,297 39,405 
Total liabilities and equity$112,988 $108,928 

9

Elevance Health
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(In millions)Six Months Ended June 30
20242023
Operating activities
Net income$4,550 $3,860
Depreciation and amortization666 895 
Share-based compensation154 139 
Changes in operating assets and liabilities(2,943)3,611 
Other non-cash items(2)(86)
Net cash provided by operating activities2,425 8,419 
Investing activities
Purchases of investments, net of sales and maturities(1,415)(1,653)
Purchases of subsidiaries, net of cash acquired(725)(1,651)
Purchases of property and equipment(602)(651)
Other, net(386)99 
Net cash used in investing activities(3,128)(3,856)
Financing activities
Net change in short-term and long-term borrowings2,580 666 
Repurchase and retirement of common stock(1,029)(1,268)
Cash dividends(757)(701)
Other, net(94)(658)
Net cash provided by (used in) financing activities
700 (1,961)
Effect of foreign exchange rates on cash and cash equivalents(5)2 
Change in cash and cash equivalents(8)2,604 
Cash and cash equivalents at beginning of period6,526 7,387 
Less cash and equivalents included in assets held for sale at end of period(21)— 
Cash and cash equivalents at end of period$6,497$9,991

10

REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Health Products & Services businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).
Elevance Health
Reportable Segment Highlight Details
(Unaudited)
(In millions)Three Months Ended June 30Six Months Ended June 30
20242023Change20242023Change
Operating Revenue
Health Benefits$37,159$38,000(2.2)%$74,417$75,280(1.1)%
CarelonRx8,7748,4663.6 %16,84116,4902.1 %
Carelon Services2
4,5453,60426.1 %8,5547,06421.1 %
Corporate & Other2
1221128.9 %24920322.7 %
Eliminations2
(7,377)(6,805)8.4 %(14,565)(13,762)5.8 %
Total Operating Revenue1
$43,223$43,377(0.4)%$85,496$85,2750.3 %
Operating Gain (Loss)
Health Benefits2
$2,145$2,1380.3 %$4,432$4,2873.4 %
CarelonRx4974960.2 %1,0201,0081.2 %
Carelon Services2
20815732.5 %49838629.0 %
Corporate & Other2,3
(85)(163)
NM4
(169)(222)
NM4
Total Operating Gain1
$2,765$2,6285.2 %$5,781$5,4595.9 %
Operating Margin
Health Benefits5.8 %5.6 %20 bp6.0 %5.7 %30 bp
CarelonRx5.7 %5.9 %(20) bp6.1 %6.1 %— bp
Carelon Services4.6 %4.4 %20 bp5.8 %5.5 %30 bp
Total Operating Margin1
6.4 %6.1 %30 bp6.8 %6.4 %40 bp
1.See “Basis of Presentation” on page 5 herein.
2.Operating Revenue and Operating Gain for the three and six months ended June 30, 2023, are restated for the realignment of Carelon Global Solutions. For the three and six months ended June 30, 2023, $163 and $311 of Operating Revenue was realigned to Carelon Services, $175 and $335 of Operating Revenue was realigned away from the Corporate & Other segment, and $12 and $24 of Operating Revenue was realigned to Eliminations. For the three and six months ended June 30, 2023, $21 and $41 of Operating Gain was realigned to Carelon Services, $10 and $20 of Operating Gain was realigned away from the Health Benefits segment, and $11 and $21 of Operating Gain was realigned away from Corporate & Other.
3.Operating Gain for the three months ended June 30, 2024, and June 30, 2023, included items adjusted out of adjusted shareholders' net income. See "GAAP Reconciliation" on page 13 and 14 herein.
4."NM" = calculation not meaningful.
11

Elevance Health
Reconciliation of Medical Claims Payable
Six Months Ended June 30Years Ended December 31
20242023202320222021
(In millions)(Unaudited)(Unaudited)
Gross medical claims payable, beginning of period$15,865 $15,348 $15,348 $13,282 $11,135 
Ceded medical claims payable, beginning of period(7)(6)(6)(21)(46)
Net medical claims payable, beginning of period15,858 15,342 15,342 13,261 11,089 
Business combinations and purchase adjustments— — — 133 420 
Net incurred medical claims:
Current year60,551 61,290 121,798 113,414 100,440 
Prior years redundancies1
(1,473)(1,112)(1,571)(869)(1,703)
Total net incurred medical claims59,078 60,178 120,227 112,545 98,737 
Net payments attributable to:
Current year medical claims48,297 48,217 107,146 98,997 88,156 
Prior years medical claims11,584 11,409 12,565 11,600 8,829 
Total net payments59,881 59,626 119,711 110,597 96,985 
Net medical claims payable, end of period15,055 15,894 15,858 15,342 13,261 
Ceded medical claims payable, end of period12 8 7 6 21 
Gross medical claims payable, end of period2
$15,067 $15,902 $15,865 $15,348 $13,282 
Current year medical claims paid as a percentage of current year net incurred medical claims79.8 %78.7 %88.0 %87.3 %87.8 %
Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year10.2 %7.8 %11.4 %7.0 %18.1 %
Prior year redundancies in the current year as a percentage of prior year net incurred medical claims1.2 %1.0 %1.4 %0.9 %2.0 %

1.Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.
2.Excludes insurance lines other than short duration.
12

Elevance Health
GAAP Reconciliation
(Unaudited)
This document references non-GAAP measures, including “Adjusted Shareholders’ Net Income,” “Adjusted Shareholders’ Net Income Per Share,” “Adjusted EPS,” “Adjusted Operating Gain,” “Adjusted Operating Expense” and “Adjusted Operating Expense Ratio,” which are non-GAAP measures. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain/Loss,” “Operating Margin” and “Adjusted EPS”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein.
Three Months Ended June 30Six Months Ended June 30
(In millions, except per share data)20242023Change20242023Change
Shareholders' net income$2,300 $1,853 24.1 %$4,546 $3,842 18.3 %
Add / (Subtract):
Amortization of other intangible assets162 221 278 456 
Net losses on financial instruments
85 121 246 234 
Transaction and integration related costs1
64 55 116 81 
Litigation and settlement expenses1
9 2 11 3 
Business optimization charges1
4 — — — 
Gain on sale of business
(240)— (240)— 
Tax impact of non-GAAP adjustments(22)(103)(103)(200)
Net adjustment items62 296 308 574 
Adjusted shareholders' net income$2,362 $2,149 9.9 %$4,854 $4,416 9.9 %
Shareholders' earnings per diluted share$9.85 $7.79 26.4 %$19.44 $16.10 20.7 %
Add / (Subtract):
Amortization of other intangible assets0.69 0.93 1.19 1.91 
Net losses on financial instruments
0.36 0.51 1.05 0.98 
Transaction and integration related costs1
0.27 0.23 0.50 0.34 
Litigation and settlement expenses1
0.04 0.01 0.05 0.01 
Business optimization charges1
0.02 — — — 
Gain on sale of business
(1.03)— (1.03)— 
Tax impact of non-GAAP adjustments(0.09)(0.43)(0.44)(0.84)
Net adjustment items0.27 1.25 1.32 2.40 
Adjusted shareholders' earnings per diluted share
$10.12 $9.04 11.9 %$20.76 $18.50 12.2 %
Three Months Ended June 30Six Months Ended June 30
(In millions)20242023Change20242023Change
Income before income tax expense$2,986 $2,441 22.3 %$5,925 $5,060 17.1 %
Net investment income(508)(416)(973)(803)
Gain on sale of business
(240)— (240)— 
Net losses on financial instruments85 121 246 234 
Interest expense280 261 545 512 
Amortization of other intangible assets162 221 278 456 
Reportable segments operating gain$2,765 $2,628 5.2 %$5,781 $5,459 5.9 %
1.Adjustment item resides in the Corporate & Other reportable segment.
13

Elevance Health
GAAP Reconciliation
(Unaudited)
Three Months Ended June 30Six Months Ended June 30
(In millions)20242023Change20242023Change
Reportable segments operating gain$2,765 $2,628 5.2 %$5,781 $5,459 5.9 %
Add / (Subtract):
Transaction and integration related costs1
64 55 116 81 
Litigation and settlement expenses1
9 2 11 3 
Business optimization charges1
4 — — — 
Net adjustment items
77 57 127 84 
Reportable segments adjusted operating gain$2,842 $2,685 5.8 %$5,908 $5,543 6.6 %
Three Months Ended June 30Six Months Ended June 30
(In millions)20242023Change20242023Change
Operating expense$5,066 $4,818 5.1 %$9,952 $9,618 3.5 %
Add / (Subtract):
Transaction and integration related costs1
(64)(55)(116)(81)
Litigation and settlement expenses1
(9)(2)(11)(3)
Business optimization charges1
(4)— — — 
Net adjustment items(77)(57)(127)(84)
Adjusted operating expense$4,989 $4,761 4.8 %$9,825 $9,534 3.1 %
Operating revenue$43,223$43,377(0.4)%$85,496$85,2750.3 %
Operating expense ratio11.7 %11.1 %60 bp11.6 %11.3 %30 bp
Adjusted operating expense ratio11.5 %11.0 %50 bp11.5 %11.2 %30 bp
Full Year 2024 Outlook
Shareholders' earnings per diluted share
At least $34.05
Add / (Subtract):
Amortization of other intangibles$2.18 
Net losses on financial instruments$1.61 
Transaction and integration related costs1
$1.21 
Litigation and settlement expenses1
$0.07 
Gain on sale of business
($1.03)
Tax impact of non-GAAP adjustments
Approximately ($0.89)
Net adjustment items$3.15 
Adjusted shareholders' earnings per diluted share
At least $37.20
1.Adjustment item resides in the Corporate & Other reportable segment.
14

Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; the effects of any negative publicity related to the health benefits industry in general or us in particular; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.
15
v3.24.2
Document and Entity Information
Jul. 17, 2024
Document and Entity Information [Line Items]  
Amendment Flag false
Entity Central Index Key 0001156039
Document Type 8-K
Document Period End Date Jul. 17, 2024
Entity Registrant Name Elevance Health, Inc.
Entity Incorporation, State or Country Code IN
Entity File Number 001-16751
Entity Tax Identification Number 35-2145715
Entity Address, Address Line One 220 Virginia Ave
Entity Address, City or Town Indianapolis
Entity Address, State or Province IN
Entity Address, Postal Zip Code 46204
City Area Code 833
Local Phone Number 401-1577
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, Par Value $0.01
Trading Symbol ELV
Security Exchange Name NYSE
Entity Emerging Growth Company false
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