Elevance Health Reports $949 Million Profit Thanks To Medicaid Enrollment Growth

Elevance Health reported $949 million in fourth quarter profits as the health insurer benefitted from higher premiums and growth in its government businesses of Medicaid coverage for poor Americans and Medicare Advantage for seniors.

Elevance, which operates an array of government and commercial health insurance including Blue Cross and Blue Shield plans in 14 states, Wednesday reported third quarter profits dipped 16.5% to $949 million, or $3.93 per share, compared to $1.1 billion, or $4.63 per share, in the year ago quarter. Revenue jumped 9% to $39.9 billion compared to $36.6 billion a year ago.

“Last year marked the fifth consecutive year in which we met or exceeded our long-term adjusted earnings per share growth target, and we are well-positioned to do it again in 2023,” Elevance Health president and chief executive officer Gail K. Boudreaux said.

Elevance’s membership grew by 2.2 million, or 4.8%, to 47.5 million as of December 31, 2022 compared to a year ago driven by growth of government business, particularly Medicaid. “During the fourth quarter of 2022, medical membership increased by 248 thousand driven by organic growth in Medicaid, which we attribute primarily to the suspension of eligibility recertification, as well as the acquisition of Vivida Health, which added 29 thousand Medicaid members,” Elevance said in its earnings report.

Elevance’s profits and continued growth are figured in the company’s forecast for increased profits and revenues for the new year, 2023 with adjusted net income expected to “greater than $32.60” per share.