Elevance Health Profits Hit $2 Billion As Insurer Adds 1.3 Million Members

Elevance Health's first-quarter revenue was nearly $2 billion as the insurer added more than 1 million new members, mostly from government-sponsored health insurance plans.

Elevance, which operates a wide range of public and commercial health plans in 14 states, including Blue Cross and Blue Shield plans, said Wednesday that first-quarter revenue rose 11 percent to $1.99 billion, compared with $1.79 billion last year. Quarterly revenue increased 11 percent to $42.17 billion.

Eleven is the latest health insurer to report strong growth as the industry receives strong government support for private health benefits such as Medicare Advantage coverage for seniors and Medicaid for low-income Americans managed by health insurance plans that work with states. UnitedHealth Group last week announced first quarter revenue of more than $5 billion.

Eleven's members increased by 1.3 million, or 2.9%, year-over-year to 48.1 million as of March 31, 2023. The growth was "primarily driven by growth in Medicaid, Medicare Advantage, and ACA (Affordable Care Act) health plan enrollment, which was partially offset by a disruption in our employer group's risk-based business," he said in a statement. From Elevance Health. In his first quarter. Income statement

Eleven's earnings and incremental growth is expected to continue this year, and the company now says adjusted net income will "exceed $32.70 per share." That beat expectations for adjusted net income of "above $32.60" per share.

"Elevance Health is off to a strong start in 2023," said Gail K. Boudreau, president and CEO of Elevance Health, in a statement accompanying the earnings report. "We continue to advance our strategy of becoming a trusted healthcare partner, meeting the needs of consumers, customers and the communities we serve through our broad and diverse range of products and solutions and partnerships with high-performing healthcare providers."