FALSE000115603900011560392024-10-172024-10-17

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

October 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 October 17, 2024, Elevance Health, Inc. issued a press release reporting its financial results for the quarter ended September 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; 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 October, 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

elevancehealtha.jpg
ELEVANCE HEALTH REPORTS THIRD QUARTER 2024 RESULTS

•3Q 2024 operating revenue of $44.7 billion
•3Q 2024 adjusted operating gain1 of $2.4 billion
•3Q 2024 diluted EPS2 of $4.36; adjusted diluted EPS1 of $8.37
•4Q 2024 dividend of $1.63 per share declared to shareholders

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

“We remain confident in the long-term earnings potential of our diverse businesses as we navigate a dynamic operating environment and unprecedented challenges in the Medicaid business. We expect Medicaid rates will align with the needs of our members in time, and are taking proactive actions to enhance operational efficiencies that will ensure we emerge from this period even stronger.”
Gail K. Boudreaux
President and Chief Executive Officer


Given third quarter results and the timing mismatch between Medicaid rates and acuity, Elevance Health now expects 2024 GAAP net income per diluted share to be approximately $26.50 and adjusted net income per diluted share to be approximately $33.00.

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

imagea.jpg
Elevance Health
Consolidated Enterprise Highlights
(Unaudited)
(In billions)Three Months Ended
September 30, 2024September 30, 2023June 30,
2024
Operating Revenue1
$44.7$42.5$43.2
Operating Gain1,2
$1.4$1.8$2.8
Adjusted Operating Gain1,3
$2.4$2.5$2.8
Operating Margin1
3.1 %4.1 %6.4 %
Adjusted Operating Margin1,3
5.3 %6.0 %6.6 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three months ended September 30, 2024, and September 30, 2023, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
3.Adjusted Operating Gain for the three months ended September 30, 2024, and September 30, 2023, exclude items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.

Operating revenue was $44.7 billion in the third quarter of 2024, an increase of $2.2 billion compared to the prior year quarter. This was driven by higher premium yields in our Health Benefits segment and growth in CarelonRx product revenue, partially offset by membership attrition in our Medicaid business.
The benefit expense ratio was 89.5 percent, an increase of 270 basis points, driven primarily by the timing mismatch between Medicaid rates and the higher acuity of our members. Days in Claims Payable was 42.8 days as of September 30, 2024, a decrease of 2.5 days from June 30, 2024, and a decrease of 5.8 days compared to September 30, 2023 due to increases in average benefit expense per day.
The operating expense ratio was 11.8 percent, an improvement of 110 basis points. Excluding adjustment items, the operating expense ratio was 9.6 percent, an improvement of 150 basis points, reflecting disciplined cost management to enhance operating efficiency.
Cash Flow & Balance Sheet
Operating cash flow was $2.7 billion in the quarter, an increase of approximately $0.1 billion year-over-year. As of September 30, 2024, cash and investments at the parent company totaled approximately $2.6 billion.
During the third quarter of 2024, the Company repurchased 0.1 million shares of its common stock for $60 million, at a weighted average price of $511.01, and paid a quarterly dividend of $1.63 per share, representing a distribution of cash totaling $378 million. As of September 30, 2024, the Company had approximately $3.1 billion of Board approved share repurchase authorization remaining. On October 15, 2024, our Audit Committee, pursuant to authorization granted by the Board of Directors, authorized an $8.0 billion increase to the common stock repurchase program. The Company intends to utilize this authorization over a multi-year period, subject to market and industry conditions.
2

abs_rxhxrgbxcxaligneda.jpg wlp_rxhxrgbxcxaligneda.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
September 30, 2024September 30, 2023June 30,
2024
Operating Revenue1
$38.3$36.7$37.2
Operating Gain1
$1.6$1.8$2.1
Operating Margin1
4.2 %5.0 %5.8 %
1.See “Basis of Presentation” on page 5 herein.

Health Benefits segment operating revenue was $38.3 billion in the third quarter of 2024, an increase of $1.5 billion compared to the prior year quarter, driven primarily by higher premium yields, partially offset by membership attrition in our Medicaid business.
Operating gain totaled $1.6 billion, impacted primarily by the unfavorable mix shift in Medicaid membership related to eligibility redeterminations, partially offset by premium rate increases, focused medical management, and the proactive actions we are taking to enhance operating efficiency.
Medical membership totaled approximately 45.8 million as of September 30, 2024, a decrease of 1.5 million, or 3 percent, driven by attrition in our Medicaid business associated with eligibility redeterminations and footprint adjustments in certain Medicaid states. These losses were partially offset by growth in Employer Group fee-based and Affordable Care Act health plan membership.

3


image1a.jpg

Carelon is comprised of CarelonRx and Carelon Services.
Carelon
Reportable Segment Highlights
(Unaudited)
(In billions)
Three Months Ended
September 30, 2024September 30, 2023June 30,
2024
Operating Revenue1
$13.8$12.0$13.3
Operating Gain1
$0.8$0.7$0.7
Operating Margin1
5.8 %5.6 %5.3 %
1.See “Basis of Presentation” on page 5 herein.

Operating revenue for Carelon was $13.8 billion in the third quarter of 2024, an increase of $1.8 billion, or 15 percent compared to the prior year quarter. This was driven by the launch and growth of risk-based capabilities in Carelon Services and growth in CarelonRx product revenue, related to the acquisition of Paragon Healthcare in the first quarter and increases in external members served.
Operating gain for Carelon totaled $0.8 billion, an increase of $134 million, or 20 percent, primarily driven by growth in product revenue and a one-time favorable intra-year true up in CarelonRx, partially offset by results in our Carelon Health businesses.
4

Quarterly Dividend
On October 15, 2024, the Audit Committee of the Company's Board of Directors declared a fourth quarter 2024 dividend to shareholders of $1.63 per share. The fourth quarter dividend is payable on December 20, 2024, to shareholders of record at the close of business on December 5, 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 approximately 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 third 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)
866-510-4837 (Domestic Replay)
312-470-0178 (International)
203-369-1943 (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 November 15, 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 September 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)September 30,
2024		September 30,
2023		June 30,
2024		September 30,
2023		June 30,
2024
Individual1,299 999 1,281 30.0 %1.4 %
Employer Group Risk-Based3,672 3,754 3,648 (2.2)%0.7 %
Commercial Risk-Based4,971 4,753 4,929 4.6 %0.9 %
BlueCard®1
6,677 6,737 6,692 (0.9)%(0.2)%
Employer Group Fee-Based20,589 20,166 20,542 2.1 %0.2 %
Commercial Fee-Based27,266 26,903 27,234 1.3 %0.1 %
Medicare Advantage2,047 2,064 2,031 (0.8)%0.8 %
Medicare Supplement894 928 894 (3.7)%— %
Total Medicare2,941 2,992 2,925 (1.7)%0.5 %
Medicaid8,926 11,018 9,028 (19.0)%(1.1)%
Federal Employees Health Benefits1,656 1,640 1,660 1.0 %(0.2)%
Total Medical Membership45,760 47,306 45,776 (3.3)%— %
Other Membership (in thousands)
Dental Members7,021 6,775 7,008 3.6 %0.2 %
Dental Administration Members1,878 1,708 1,851 10.0 %1.5 %
Vision Members10,382 9,861 10,275 5.3 %1.0 %
Medicare Part D Standalone Members258 261 260 (1.1)%(0.8)%
Other Metrics (in millions)
CarelonRx Quarterly Adjusted Scripts80.2 77.3 78.2 3.8 %2.6 %
Carelon Services Consumers Served101.3 104.8 102.3(3.3)%(1.0)%
1.BlueCard® membership for the three months ended September 30, 2023, is restated to align to the Blue Cross Blue Shield Association reporting methodology. For the three months ended September 30, 2023, BlueCard® membership has been restated lower by 19.
7

Elevance Health
Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)Three Months Ended 
 September 30		Nine Months Ended 
 September 30
20242023Change20242023Change
Revenues
Premiums
$36,809$35,2594.4%$107,921$107,7160.2%
Product revenue5,8875,17713.7%15,91614,05813.2%
Service fees2,0232,044(1.0)%6,3785,9816.6%
Total operating revenue44,71942,4805.3%130,215127,7551.9%
Net investment income55149311.8%1,5241,29617.6%
Net losses on financial instruments(125)(124)NM(371)(358)NM
(Loss) gain on sale of business
(39)—NM201—NM
Total revenues45,10642,8495.3%131,569128,6932.2%
Expenses
Benefit expense32,94930,6067.7%94,06792,9961.2%
Cost of products sold5,0934,6489.6%13,73812,45610.3%
Operating expense5,2695,470(3.7)%15,22115,0880.9%
Interest expense30025915.8%8457719.6%
Amortization of other intangible assets122212(42.5)%400668(40.1)%
Total expenses43,73341,1956.2%124,271121,9791.9%
Income before income tax expense1,3731,654(17.0)%7,2986,7148.7%
Income tax expense3653543.1%1,7401,55412.0%
Net income1,0081,300(22.5)%5,5585,1607.7%
Net loss (income) attributable to noncontrolling interests
8(11)NM4(29)NM
Shareholders' net income$1,016$1,289(21.2)%$5,562$5,1318.4%
Shareholders' earnings per diluted share
$4.36$5.45(20.0)%$23.81$21.5610.4%
Diluted shares233.1236.5(1.4)%233.6238.0(1.8)%
Benefit expense as a percentage of premiums89.5 %86.8 %270 bp87.2 %86.3 %90 bp
Operating expense as a percentage of total operating revenue11.8 %12.9 %(110)bp11.7 %11.8 %(10)bp
Income before income tax expense as a percentage of total revenue3.0 %3.9 %(90)bp5.5 %5.2 %30 bp

"NM" = calculation not meaningful
8

Elevance Health
Condensed Consolidated Balance Sheet
(In millions)September 30,
2024		December 31,
2023
Assets(Unaudited)
Current assets:
Cash and cash equivalents$7,866$6,526
Fixed maturity and equity securities30,067 29,843 
Premium and other receivables18,399 17,865 
Other current assets5,949 5,795 
Assets held for sale
565 — 
Total current assets62,846 60,029 
Long-term investments10,287 6,983 
Property and equipment, net4,505 4,359 
Goodwill and other intangible assets36,292 35,590 
Other noncurrent assets2,603 1,967 
Total assets$116,533$108,928
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable$15,346$16,111
Short-term borrowings360 225 
Current portion of long-term debt2,100 1,649 
Other current liabilities24,064 23,806 
Liabilities held for sale
163 — 
Total current liabilities42,033 41,791 
Long-term debt, less current portion24,688 23,246 
Other noncurrent liabilities5,933 4,486 
Total liabilities72,654 69,523 
Total shareholders’ equity43,775 39,306 
Noncontrolling interests104 99 
Total equity43,879 39,405 
Total liabilities and equity$116,533$108,928

9

Elevance Health
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(In millions)Nine Months Ended September 30
20242023
Operating activities
Net income$5,558$5,160
Depreciation and amortization995 1,321 
Share-based compensation220 217 
Changes in operating assets and liabilities(1,701)3,821 
Other non-cash items30 513 
Net cash provided by operating activities5,102 11,032 
Investing activities
Purchases of investments, net of sales and maturities(1,614)(1,976)
Net purchases of subsidiaries, net of cash acquired/sold
(725)(1,570)
Purchases of property and equipment(934)(970)
Other, net(256)(27)
Net cash used in investing activities(3,529)(4,543)
Financing activities
Net change in short-term and long-term borrowings1,915 401 
Repurchase and retirement of common stock(1,089)(1,748)
Cash dividends(1,135)(1,049)
Other, net94 (559)
Net cash provided by (used in) financing activities
(215)(2,955)
Effect of foreign exchange rates on cash and cash equivalents2 (2)
Change in cash and cash equivalents1,360 3,532 
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(20)— 
Cash and cash equivalents at end of period$7,866$10,919

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 September 30Nine Months Ended September 30
20242023Change20242023Change
Operating Revenue
Health Benefits$38,278$36,7444.2 %$112,695$112,0240.6 %
CarelonRx9,1438,5187.3 %25,98425,0083.9 %
Carelon Services
4,6383,50932.2 %13,19210,57324.8 %
Corporate & Other
7495(22.1)%3232988.4 %
Eliminations
(7,414)(6,386)16.1 %(21,979)(20,148)9.1 %
Total Operating Revenue1
$44,719$42,4805.3 %$130,215$127,7551.9 %
Operating Gain (Loss)
Health Benefits
$1,604$1,834(12.5)%$6,036$6,121(1.4)%
CarelonRx61947729.8 %1,6391,48510.4 %
Carelon Services
184192(4.2)%68257818.0 %
Corporate & Other2
(999)(747)
NM3
(1,168)(969)
NM3
Total Operating Gain1
$1,408$1,756(19.8)%$7,189$7,215(0.4)%
Operating Margin
Health Benefits4.2 %5.0 %(80) bp5.4 %5.5 %(10) bp
CarelonRx6.8 %5.6 %120 bp6.3 %5.9 %40 bp
Carelon Services4.0 %5.5 %(150) bp5.2 %5.5 %(30) bp
Total Operating Margin1
3.1 %4.1 %(100) bp5.5 %5.6 %(10) bp
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three months ended September 30, 2024, and September 30, 2023, included items adjusted out of adjusted shareholders' net income. See "GAAP Reconciliation" on page 13 and 14 herein.
3."NM" = calculation not meaningful.
11

Elevance Health
Reconciliation of Medical Claims Payable
Nine Months Ended September 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 year92,715 91,058 121,798 113,414 100,440 
Prior years redundancies1
(1,610)(1,342)(1,571)(869)(1,703)
Total net incurred medical claims91,105 89,716 120,227 112,545 98,737 
Net payments attributable to:
Current year medical claims79,220 77,048 107,146 98,997 88,156 
Prior years medical claims12,567 12,097 12,565 11,600 8,829 
Total net payments91,787 89,145 119,711 110,597 96,985 
Net medical claims payable, end of period15,176 15,913 15,858 15,342 13,261 
Ceded medical claims payable, end of period9 4 7 6 21 
Gross medical claims payable, end of period2
$15,185 $15,917 $15,865 $15,348 $13,282 
Current year medical claims paid as a percentage of current year net incurred medical claims85.4 %84.6 %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 year11.3 %9.6 %11.4 %7.0 %18.1 %
Prior year redundancies in the current year as a percentage of prior year net incurred medical claims1.3 %1.2 %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 September 30Nine Months Ended September 30
(In millions, except per share data)20242023Change20242023Change
Shareholders' net income$1,016 $1,289 (21.2)%$5,562 $5,131 8.4 %
Add / (Subtract):
Litigation and settlement expenses1
669 2 680 5 
Business optimization charges1
268 697 268 697 
Net losses on financial instruments
125 124 371 358 
Amortization of other intangible assets122 212 400 668 
Transaction and integration related costs1
42 73 158 154 
Loss (gain) on sale of business
39 — (201)— 
Tax impact of non-GAAP adjustments(329)(270)(432)(470)
Net adjustment items936 838 1,244 1,412 
Adjusted shareholders' net income$1,952 $2,127 (8.2)%$6,806 $6,543 4.0 %
Shareholders' earnings per diluted share$4.36 $5.45 (20.0)%$23.81 $21.56 10.4 %
Add / (Subtract):
Litigation and settlement expenses1
2.87 0.01 2.91 0.02 
Business optimization charges1
1.15 2.95 1.15 2.93 
Net losses on financial instruments
0.54 0.52 1.59 1.50 
Amortization of other intangible assets0.52 0.90 1.71 2.81 
Transaction and integration related costs1
0.18 0.31 0.68 0.65 
Loss (gain) on sale of business
0.17 — (0.86)— 
Tax impact of non-GAAP adjustments(1.41)(1.14)(1.85)(1.97)
Net adjustment items4.01 3.54 5.33 5.93 
Adjusted shareholders' earnings per diluted share
$8.37 $8.99 (6.9)%$29.14 $27.49 6.0 %
Three Months Ended September 30Nine Months Ended September 30
(In millions)20242023Change20242023Change
Income before income tax expense$1,373 $1,654 (17.0)%$7,298 $6,714 8.7 %
Net investment income(551)(493)(1,524)(1,296)
Loss (gain) on sale of business
39 — (201)— 
Net losses on financial instruments125 124 371 358 
Interest expense300 259 845 771 
Amortization of other intangible assets122 212 400 668 
Reportable segments operating gain$1,408 $1,756 (19.8)%$7,189 $7,215 (0.4)%
1.Adjustment item resides in the Corporate & Other reportable segment.
2.Totals may not foot due to rounding
13

Elevance Health
GAAP Reconciliation
(Unaudited)
Three Months Ended September 30Nine Months Ended September 30
(In millions)20242023Change20242023Change
Reportable segments operating gain$1,408 $1,756 (19.8)%$7,189 $7,215 (0.4)%
Add / (Subtract):
Litigation and settlement expenses1
669 2 680 5 
Business optimization charges1
268 697 268 697 
Transaction and integration related costs1
42 73 158 154 
Net adjustment items
979 772 1,106 856 
Reportable segments adjusted operating gain$2,387 $2,528 (5.6)%$8,295 $8,071 2.8 %
Three Months Ended September 30Nine Months Ended September 30
(In millions)20242023Change20242023Change
Operating expense$5,269 $5,470 (3.7)%$15,221 $15,088 0.9 %
Add / (Subtract):
Litigation and settlement expenses1
(669)(2)(680)(5)
Business optimization charges1
(268)(697)(268)(697)
Transaction and integration related costs1
(42)(73)(158)(154)
Net adjustment items(979)(772)(1,106)(856)
Adjusted operating expense$4,290 $4,698 (8.7)%$14,115 $14,232 (0.8)%
Operating revenue$44,719$42,4805.3 %$130,215$127,7551.9 %
Operating expense ratio11.8 %12.9 %(110) bp11.7 %11.8 %(10) bp
Adjusted operating expense ratio9.6 %11.1 %(150) bp10.8 %11.1 %(30) bp
Full Year 2024 Outlook
Shareholders' earnings per diluted share
Approximately $26.50
Add / (Subtract):
Litigation and settlement expenses1
$2.93 
Amortization of other intangibles$2.21 
Net losses on financial instruments$1.93 
Business optimization charges1
$1.15 
Transaction and integration related costs1
$1.03 
Gain on sale of business
($0.86)
Tax impact of non-GAAP adjustments
Approximately ($1.89)
Net adjustment items$6.50 
Adjusted shareholders' earnings per diluted share
Approximately $33.00
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
v3.24.3
Document and Entity Information
Oct. 17, 2024
Document and Entity Information [Line Items]  
Amendment Flag false
Entity Central Index Key 0001156039
Document Type 8-K
Document Period End Date Oct. 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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