Elevance Health (ELV) Goldman Sachs 45th Annual Global Healthcare Conference summary

Financial performance and utilization trends

• Guidance reaffirmed with stable utilization trends across Medicare, Medicaid, and commercial lines, consistent with Q1 and expectations for Q2.

• Medicare shows stabilization in inpatient trends, with some ongoing outpatient increases in cardio, physical therapy, and radiology.

• Medicaid trends are driven by acuity mix shifts due to redeterminations, not by per-member utilization increases.

• Commercial business trends remain stable and accurately priced, supporting continued confidence in outlook.

• Ongoing active discussions with states on Medicaid rates, with constructive progress and actuarially sound rates expected.

Strategic initiatives and care delivery

• Recent partnership with CD&R, Apree Health, and MPG aligns with a capital-efficient, enablement-focused approach to value-based care.

• The strategy leverages strengths across commercial, Medicare, and Medicaid, with scalable, payer-agnostic solutions.

• Synergies expected through technology integration, EMR capabilities, and specialty enablement, with a long-term plan to bring assets in-house.

• Growth will be accelerated by targeted provider engagement and capital for acquisitions, with deliberate application of Carelon services.

• Expansion into risk-based and global capitation arrangements in primary care, with subcapitated specialty partnerships for complex care.

Medicare and commercial business strategy

• Medicare bids for 2025 were approached with discipline, focusing on margin stability and local market competitiveness.

• Recent years saw exits from unprofitable plans and benefit rationalization, with margin improvement and stable to improving outlook for 2025.

• Commercial margins have returned to pre-pandemic levels, with incremental opportunities for further improvement and growth in fee-based business.

• Integrated pharmacy-medical solutions are increasingly demanded, especially in large group RFPs.

• Down-market employers remain paternalistic, with limited appetite for ICHRAs, but ACA competitiveness supports membership retention.