Elevance Health Inc 2Q26 Conference Call Takeaways - Medicaid Uncertainty Remains Overhang

研报英文原文证据摘录

Elevance Health Inc 2Q26 Conference Call Takeaways - Medicaid Uncertainty Remains Overhang

to sustainable positive performance and if a market Q1 12.58 12.58

does not fit into the overall Elevance enterprise strategy. Management did not Q2E 6.17 6.21

elaborate further on the scope of potential market exits. The company believes the Q3E 5.54 5.06

Q4E 2.52 3.02

upcoming changes from OBBBA surrounding Medicaid will be manageable and

12/26E 26.80 26.91

have less of an ultimate impact than redeterminations.

12/27E 28.80 29.30

Comments on Cost Trend: Cost drivers in Medicaid remain concentrated in 12/28E 32.50 34.11

behavioral, specialty, outpatient surgery, and emergency department utilization.

AJ Rice

Trends are consistent with 1Q after adjusting out the flu and prior development. Analyst

The incremental pressure is coming from utilization rather than acuity. For aj.rice@ubs.com

outpatient surgery, there are lower trends in MA & ACA, while Group is more unit +1-212-713 4299

cost driven while Medicaid is more utilization driven. Jonathan Yong

2Q Earnings Outperformance Breakdown: ELV called out $0.50 of Analyst

jonathan.yong@ubs.com

EPS outperformance in 2Q, split roughly evenly between the Exchanges and MA.

+1-212-713 6268

Within the exchanges, the benefit of seasonality was equal in magnitude vs 1Q,

and there was also some favorability from the risk adjustment. There was also Michael Wei

$0.80 of one-time below the line benefits that were offset by targeted Associate Analyst

michael.wei@ubs.com

investments. Theses investments are focused on long term durable capabilities

+1-212-713 2565

that strengthen data and insight for faster actions around medical costs, along

with a simpler member experience, better provider connectivity, and enhanced

claims accuracy.