ANTM - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Anthem’s Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the conference over to the company's management. Please, go ahead.

Chris Rigg

to quarter welcome earnings and morning Anthem's XXXX second call. Good of Chris Rigg, is Investor Vice This President Relations. Haytaian, Commercial us Boudreaux, Felicia John Pete President with Norwood, and of And this Government CEO; Gallina, morning President of our Business Division; Specialty Business & are our Gail President and our Division. CFO;

to on we comparable GAAP directly will call, measures. our the most antheminc.com. certain non-GAAP Reconciliations are the available of During reference these website non-GAAP measures measures

to call. making and of some and cautioned forward-looking which We carefully Listeners the will this discussed subject actual release risks in over are today's the now factors Anthem. results and review these press on certain are differ in call the cause also will quarterly uncertainties and uncertainties, are to SEC. statements control our I be risks generally beyond predict to Gail. the that listeners filings current turn with our statements of These from difficult to risk can to advise materially expectations. many We

Gail Boudreaux

health issues and for impacts profound evolve earnings review, and these joining XXXX Anthem’s serve. quarter last second our associates, the Since for justice The communities, events call. business you morning to ongoing respond those local has social we continued our thank and facing us to all society. for Good are crisis of earnings and

hospital needs employer, Anthem and providers commit need ease among several non-profit continued take to I'm customers, members, $X.X to months, to customers. financial past has Last to testing, ongoing, took affordable quickly The in and assistance, of help. the COVID-XX, our way remain who To including Over for Anthem by that needed treatment, remove quarter, air COVID-XX a partners. coverage to in-patient action sharing support billion we and our the those our care has are treatment bold waiving steps healthcare burden we more directly proud to stays. creating provide barriers for valued We to and members cost of for of end, the responded support. experience committed

We services. paid also diagnoses. $XXX COVID-XX COVID-XX authorizations tests diagnostic we've with million date, related related associated covered prior approximately for [waive] and To

In credit addition, our to XX% group a from while individuals individual with group received and employer associates, customers standalone premium ranging we a one-month provided and plans XX% XX% credit. dental our on

flexible continue We as with well to value options by affordable they them payment buy as to customers navigate the providing deliver our as crisis. down terms,

strategy to integral legacy commitment Our our of our at an part unwavering is local and communities Anthem.

the privilege For more than and years, we've understood responsibility. XX

levels of a housing, change at over pledge commitment our and leading nearly racial disparities, we health, the in live and And study support with heart health the one the moderate where security, households the mission most. the to security years economic impacted To food with XX% have Feeding recovery. of of in for. mental health being it recent insecurity, focus and such as five next work. profound of today our wake this high most communities increasing We directly the the make showed positive trend, on and We A food know to of is This we recent pandemic. national that needs report as and are the key combat $XX of partner America. children that that we to reflects drivers was inequities, our stand all million food

food. meals than of XX home to pleased million provide announce Indiana, to Here as Food more state our to partnership in expand our $X million recently access of grant part Gleaners with matching were a to Bank we nutritious

volunteering organizations, with inspiring. back XX,XXX more their and of to They're teaching, hours have as and well than doing give committed are local are donated community associates purpose, to UN resources deeply take needed much Our virtual fulfilling on Compact. it's part pleased signing donating announce to bold am online Global our our to step, and social today, to mentoring, I a we as efforts responsibility with the new along outreach,

the help and recognize more we shape role societal ever, more than play inclusive, stronger, to important a we sustainable more Now, world.

reflect Putting Medicaid has our businesses. impacted times compared sales Medical on the in X%, local of As brand. moved were business, less we our commercial, in-group expected, our deliver million care. partially the grew quarter by in by Medicare decline in we declines that the Despite was X.X performance, and portfolio demonstrates our live enrollment. perspective, losses particularly to the enrollment trust by were or all reflecting business person growth and attrition in group pandemic increased clearly sequentially in and risk-based group, XX and quarter, Medicaid exceeding hard, than have risk-based Medicare enrollment populations the Medicaid diverse our The lapses. our true to offset commercial new in quickly strength Anthem particularly growth nearly our employer year prior nearly

To grateful partners frontlines ongoing Medicare Our one-on-one work their safe customer have associates Program. reached high-risk date, we've and Supplemental out our to delivery. on guiding to I Assistance food, our them members of members, Nutrition on-boarding such as as provider ensuring through to and to helping of and and work members, the remain the this as care XX% continues. for enroll Medicaid access doing our programs, new outreach vulnerable care well been care housing, support

part care. of authorization temporarily and supplies, requirements ventilators, oxygen partners, simplified delivering enabling to transfers, them support procedures, devices, suspending and focus policies As our respiratory prior multifunction to we've including patient exceptional for those on

to to support during as period, pressures physicians In returns this addition, we're normal undue care slowly utilization financial levels. who facing targeted primary are extending

our is for such variety and online innovation, heart shape patient industry aspire If committed as along care digital beginning care or about touch and to providers conditions, most remote members. in-home for return compassionate COPD, helping of and future. use include monitoring direct a [indiscernible] These support. care of to care are Our failure think with more and chronic congestive the and we Anthem our the vulnerable points

to of is wellness have stage the only life. pioneering to are their And We cornerstone healthcare. to first of designed efforts technologies improve care every manage accelerated our experiences COVID-XX health health this space. future our in with at Digital consumers total personalized deliver help of and the

individuals Sydney we to for the government employer, To and and CXX help Care assessments. triage in date, telehealth For recently CXX and NAI] using Navigator XXX,XXX to see consumers, XX,XXX inform own more their to facilitated decisions our COVID-XX directly COVID-XX their visits partners, to phone. is from than launched help care and time symptoms Solution return [data we've data customers, Explorer planning. real resource and tools guide aggregate And workplace

their were levels. members increasing care devices. As XXX% Alexa, plan in managed times recent calls virtual our continues. pre-COVID levels. use by Anthem solution in Live one on visits XX of the Demand X now our with At to assistant representatives first Amazon our with and voice health new of for customer million with space up early pre-COVID partner and to schedule telemedicine to demand Alexa peak, visits can prescriptions its check companies health Anthem the online, personal telehealth April enabled the directly relative also is renew usage their details, health Skill, through health members surpassed demand behavioral

of alliance, use address to and accelerate COVID-XX for to driven scalable needs. strategic were working partnership XPRIZE The global In to a health help improve a tests on this outreach responded to accurate, supports help those most and to behavioral infection. is with treatments digital and coalition Anthem. need of members enhance as COVID-XX shared services and private partner of to team for founding leveraging outcomes also that and active focused help develop pivoted solutions pandemics. pleased consumers a applied pandemic innovation be to risk online Fight alliance promising competition, and plasma to the providers growing low power interface, that transition Us” our quickly has for can Is a join results to conduct are convalescent Beacon be to the focus future Collaborative We're to at care We rapid, public special partnerships collaboration, Our care and pleased the in serve “The continue cost. campaign,

duration unknown uncertainty, recent to and achieve our is to across magnitude the longer-term this recognize Anthem we is and turn given pandemic call there Despite the Gallina this XXXX ahead, in country. the goal. now will deliver cases Looking much I guidance well-positioned COVID-XX of on discuss resurgence EPS regarding over that, our our financial to John? And John with results. the financial

John Gallina

to solutions have inception the members And support. of you, good we a credits, while pandemic, financial and members. of as grants, all support, innovative cost diligently new providers. COVID-XX for waivers, well-being the $X.X community morning. billion including our premium rolling our trusted provided Thank extended in this to is committed worked We proactively partner and health serve Since and out share and maximize care and the Gail,

of date the we of was remains to our $XX.XX. our of to While of quarter. per adjusted our approximately second we The Relative by uncertain, of our deferral expect and financial much people to normal total to benefit business share year. imbalances May, And share we're utilization consumers. adhered firmly adjusted place impacted orders. XX% in nationwide from result the announced, patterns. our are broad quarter, rectifying will COVID-XX differ a previously months of earn We baseline the earnings historic year as inherent achieved earnings our as our based XX% committed per utilization as aggregate expectations second healthcare XX% first below to in in bringing values the six in April seasonality annual significantly have seasonality of in expectations, for in further shelter to $X.XX earnings the guided the the and in

early, still utilization while experience, baseline. recovery June a of roughly Our XX% suggests to

enrollment. to guidance half pre-COVID-XX loss of the has expectations. in adding million dynamic our All more decline second persists representing of during today. this an is medical normal times. Medical what assumes members, Attrition commercial nearly couple nearly quarter. grew the recovery uncertain to members our recent quarter, a membership increase relative Even at XXX,XXX would we increase baseline and double lives our ratio less members million new of points ahead, organically year than hundred in quarter, quarter, commercial the grew XX.X enrollment more suggested. slightly seasonality the in expected impressive our been growth have half by than second in net X% reflecting utilization XXX,XXX business over expect in business prior utilization the these Government end totaled ahead the in, the second basis we Looking by during second comes X.X that

most the likely commercial in enrollment ACA in assistance and and the in to declines federal our We times, have However, attrition mix believe accelerate strong we to expires. in been when periods membership of have economically individual through we mitigate able is Medicaid believe to balanced expect we again growth as grow our Nonetheless, our we resilient success, the membership. In XXXX, such enjoyed during membership. company XXXX, economic challenging sector. In grew businesses. more we

both and mix XXXX. in build reflect XX% on Overall, our Anthem IngenioRx quarter operating return billion an nearly the our economic our last Medicaid trending. was growth in pleased in launch fee increase Our over membership Operating and deliberate diversified of prior XXXX. commercial well us rapidly HIF-adjusted related X.X quarter product strategy the a is well of growing the $XX.X through platform strong positive in Medicaid more as perform insurer XX% leading and while quarter, and a the and membership days an franchise, of X.X Growth increase revenue quarter, revenue, Medicare was in days, Days allows payable to maintaining the as establishing second XX negative and increase how from year, claims the a of decade, from and business to with was driven business. in the a of conditions. basis. Results we're day the gains first Medicare, industry the revenue second over health and by the efforts

claims our taken Given conservative to we have uncertainty, posture the reserves. a related

flow levels in fee more tax the norms Act. in-line quarter several billion year. strong in half second the we'll accordance making from We including be timing in at the the to related cash flow and net times insurer quarter, decline expect with payroll X.X the very payment. In benefited [DCP] rebounds Operating certain tax was Cash as utilization delay payments the items, income. to federal historical and three federal with of CARES third $X.X health the of payments

approximately flexibility. quarter our As the billion We $X.X ended financial quarter investments a in a at parent number immediate enhance the reminder, second we company. of with actions the and of took first to cash

our the quarter earlier ratio year, in the continue repurchase of XX.X% to our than resumed reflecting debt-to-capital compared the and enhanced in program basis position. as performance of first is concerns liquidity prevalent conclude, points, share to have demonstrates liquidity of expect shares Our greater our diversified that model our in to not a With the year. as value the were XXX decrease the for $X.X XX.X%, quarter repurchase billion they real. To clearly was we

ahead, expect not we growth trajectory. which attrition significantly Advantage we Medicaid Medicare growth growth, Thus far, COVID-XX As mid-double individual continues commercial look a enjoy in and to additional enrollment digit our impacting is strong our business.

greater guidance analyses the impact to remains rigorous much of original $XX.XX. adjusted pandemic, per of full-year share our scenario support about continue our ramifications Although uncertain and than the earnings

share on to earnings Operator? other for metrics. continue guidance, with that, it we we all now up reconfirmed While open questions. And per we guidance our withhold have will

Operator

our Morgan [Operator Goldwasser go the Instructions] we'll Ricky to For question of first line Stanley. with

is line open. go Please Your ahead.

Ricky Goldwasser

you. Yeah. Thank morning. Hi. Good

Obviously, [deferring So, the about some where maintained guidance have back places some on seeing you've regions versus Q been are being in what of specific effort] the that think cases are you more COVID half? normalization [net from of there reports second as coming the second back can coming should some you're lot year, you us color how some again, with] back? return give to half in in the deferred we a assume

John Gallina

question. the Appreciate Ricky. you, Thank

of say and and uncertainty pent-up COVID-XX know, of and And we extended quarter, payment certainly dental the have the provider with increase demand providing recent Right that lot a the an PPE lot have well You spike deductibles second understatement co-pays to but a what know, providers, in experienced addition, we the for now, to still an associated situation, to other not and the we're there's we're in know, you for a deferred April. as procedures. it's from COVID as treatment. of of certainly providing in may shutdown have full And covering benefits reimbursement while for community. more we expecting we're similar the system cause we you

going last be we do believe I we other significantly ratio appropriate provide drops all will XXX versus second a imbalance would to exist did part address $X.X to of And utilization the is And the comment medical as still of if a points only know, the year note under normal so what value the given be that variables, whatever help with that again, system billion to associated in will the take be we'll the loss reasonable our guess about on. that result that. half of basis And you estimate certainly higher non-emergent what's actions expected circumstances.

really but we the guess that the do guidance the EPS question, appreciate right now. So, really think is $XX.XX best

Gail Boudreaux

Ricky. the question, for Thanks

please. question Next

Operator

go the we'll Research. Next, with Justin to of Wolf line Lake

go Your line ahead. Please open. is

Justin Lake

Thanks. Good morning.

talked the the year? of be saw rate versus pressure into membership second well? on quarter half in about churn your in in lack and in the built into you what assumption the any then membership? Medicaid, terms questions – progress on the think couple XXXX would there going to How that’s can we've of back a guide And of be about helpful Thanks. you new as Just what for comments

Gail Boudreaux

the feel look share that to this unemployment of going we But your during I'm question, I'll the strong But strongly other we to more for as feel resonated. to membership the and overall have during we noted, the but think, Thanks in at Justin. the growth, saw, maybe I due very vast as the Felicia Felicia? would re-verification brand you little were gained our membership and of as occurred time have with a terms time. gains also you again, things versus have give Felicia we that color bit states. majority we stopping question, specific comment, discussions about

Felicia Norwood

Thank for you, the thank you Gail. question. And

quarter to up due suspension This primarily XXX,XXX to X.X enrollment mentioned, And Medicaid at second temporary Gail the was the ended as million the re-verifications. members. first approximately of Our was that in quarter. compared

Our continue brand continued early and space. as in very good Medicaid indicates the the We program. to Medicaid we well July our indications grow share grow feel for in about

looking to Medicaid environment. our ahead, happens in emerging we know, Roughly members this in states during we're able where be of standard]. And to growth believe we see expectation [been You XX% whatever well-positioned XX% that is to continue to has reside time. navigate the will Medicaid this

to unemployment business So, while impact, the commercial offset expect declines our certainly on continue would might side. it's growth increases, that to the the we quantify too government happen any certainly early to membership potential if in rate

In terms expected to actions, amount of rated a any with or certainly you the experience question as John and respect refunds. won't actions our and rate both but rate, mentioned rate reflects of experience we the refunds the earlier, disclose rated view your known our of know, of guidance reasonable

work actually rates and a appropriate. basis are are be that to with state our going required rates partners daily know, to be developing we You sound on on

limit predictability properly care our really defined that states these discussions considering within own for really the we and You business seeing states risk across XX buries our today COVID you our other under know, resurgence of performance cases. in both Roughly profitability which ensure that markets know, [indiscernible] also managed is have quarters are of in really mechanisms, and some kind in reopening certain XX are normal that the risk states but are place some balanced. even states or to circumstances, ranges are other a states and in with effectively as provides already tries

provide our continue make our work And members. that during we Thank and We them, to going sure to our this this remains long to through with foremost concern care really a and to are have to able partners, you. time. access state we're history with

Gail Boudreaux

it's with quite where perspective, And the feel and that been overall we them, it's sort that performance. and growth you Felicia conversation for constructive in Thanks we we're share about a Medicaid Justin. of very dialogue what from but that model, question, feel know, think I from our part good our said, of the a states continuous it's just a are we reiterating, with

Next question please.

Operator

Stephen The comes Tanal from with question SVB next Leerink.

open. is line go Please ahead. Your

Stephen Tanal

the for Thanks morning. Good question.

kind those guys just if going quarter commercial margin forward? expect that, she changes shift dollars, the government that, any business, pandemic to the I'm So, to side. enrollment commercial Just like on wanted the wanted reading the Thank from example, segments, to know separately, think little the business? commercial wanted you. the COVID a worth you the then anyway the of on Medicaid And revenue get just the more and and helpful? guys side, the on too much to I just on dollars would know, don't life the comment understand that what looked in think businesses you profit really and said that it lines side is Medicaid into about ask commercial maybe for profit you rate, and be benefited just between of clarify context how I government mix now, how two bit but on maybe following Felicia’s associated up one two affected of offset with

John Gallina

Yeah, thank question, you for the Steve.

significant be commercial the in utilization differed was it market was impact little of benefit and in and in than procedures it amount and bit was of in least the of the segment would utilization, the Medicaid, the decreased structure. all, – it deferred the in Medicare reporting non-emergent the then terms actually the of the in more First cost a

XX% membership that that commercial the we on premium on recorded for local customers, credit. the business, our all the the you the in the XX% quarter was business to XX% However, premium know, to the credits and in of up of to and provided specialty segment, to entirety second entire

that share what analysis commercial commercial market. has that is waivers for premium the the are item the the when cost commercial looking you're and treatment And are at so in the quarter-over-quarter part market testing of COVID probably And results. the your that's reconciling the in credits premium then is also

Associated target even with of on to know, based target and PMPM the certainly premium, commercial a the on could the and X%, our operating profitability, average we ongoing work in all $XX that on the single high marketplace, margins the easily be you business $XX out could have businesses. digits, business fully insured margins easily game. And

fee margin, on And volumes, but you ASO for the target There's and PMPM. just have fee side the on X% side, you based there, much a $XX the you which PMPM and a well to profit a less X% even look variations However, acuity. revenue you the various our basis. be an the on stated have X%, much, maybe Medicaid op op higher over is margin you target obviously Medicaid, is Medicaid, the [TANF] at then of at to could on lot $XX utilize the you if have a margin midpoint know, or being premium a $X

because offset that you So, goes you various it depending various member, reasons on it's to continue out lines insured That's a membership nicely. for how ASO profit actually how government, the really help or a if when the it our between business commercial that and business margins Thank the is shift about of our bounce we each on to and one of question. we see can mix that over talk areas. when is, lose quite there's fully diversified resilient could is the as other

Stephen Tanal

thanks. Helpful,

Gail Boudreaux

based but overall clarification remarks, you fairly just risk were a particularly the clarify as at so our you enrollment, muted about want One, Stephen, couple we shared our a prepared said as our unemployed little was appointment that lives. and I things. membership down XXX,XXX we commercial just as comment think offset, the on as we lives, about in to look

I our as resilient, the our of and some of a dampened catcher's on we doing think we're So, we another over that business, the But have often our lapses, think having offset you sales this quite in that really products feel that business, really teams day, sign but expect, large and are so do impact very look this. quarter course mitt of that been risk have know, opportunity. our commercial through pleased talked we've at frankly actually, put basis, affordable furloughs managing have our was, group we that your we overall out nice about job in

I saying what think the compelling times, as risk clarifying trading I for you remarks, risk and are offset outpaced in fee quarter, lives it's you're at Felicia look also lives Medicaid by so little much a was quite lives. shared our my clearly XX more specifically, of And based that. when

So, losses self-funded our a we lot our life. in much generate were ASO able of in our came risk customers and more to

to So commercial continues overall, lose expect unemployment do we more lives. as

So, our want we leave the book catcher's had we of resilient with you feel very won't, to business. that a we impression but overall, across mitt I don't

the next So question And thanks for question. please.

Stephen Tanal

Thank you.

Operator

For we’ll Credit Rice our next go Suisse. question with to A.J.

ahead. is line open. Please go Your

A.J. Rice

about there? otherwise end get as to a expected COVID comment any to selling normal obviously and tough you thing one hear but I are anyway, was ramp everyone. first Maybe Ingenio, part how just good to doing this ask the for we from trends a big season you would a the year How's toward of profitability relative situation your is the expectations PBM see the the there, for of story the XXXX? I'll Yeah, on year, that guess and in up have the that impacting

John Gallina

and Good thank question. you the for morning, A.J.

really our job You and expectations. know, meeting a doing quite of well has nice IngenioRx done actually is

of As a to we earlier on you and being original of had able things are Ingenio out you of to, ESI expected know, year than really the contract a the we based swing get timeline know that full-year in ahead. the

a actually profitability in opposed first so you implementation And, here an XXX of quarter, key as in million you is into about that. to quarter. the And terms really XXXX made things know, know, million XXX going few this there's And, year. we a rate year, run itself,

XXX returning You year, we've we've to situation, of with $X about – to believe the gone Well maximize and and billion shareholders, CVS, and got the $XXX from XX operating course return the run million of the existing of pharmacy our customers and to was related and tried we're part XXX gain million to of go talked contract Ingenio and the includes throughout self-funded basis. value which the we half the now recorded of that going in through optimize in rate on XXXX, closer Also that Ingenio better the the of actually really XX% million. to of previously we be is segment. to commercial as million segment, first that would always forward in that and shift know that a be the being savings recorded

we bit scripts maintenance a the April. scripts because type segment. in was so run by there profits refill that And that second work the of run that’s while the helped maybe third XX% XX% the an soon rate all included could even as certainly basis, historical business be, that maybe know, you too of than were to And is what good benefited be, a of better scripts, of first party down And Ingenio part had little the quarter quarter relaxation second really And quarter know, first know, higher patterns, do you consistent indication the new then, well or believe a the in are in we rate the situation. that's you any revenues as from the as helping edit. impact quarter to with but overall versus profitability

the of the for sustainable for you Thank level quarter the low actually so, end is future. for question. probably the engineer a And second

Gail Boudreaux

are, and all think In terms customers their of at in the things the as environment selling their through change least season, A.J., last the operating quarter, work I you delayed we an would know, to own say shared across stability it's try interesting given been slightly business. this I

say I our think early, is While pipeline that good. quite would still I it's still

and but one an feel some in sales seeing you We've pipeline. We increase business move to fee-based we'll active. overall, year-over-year part is cycle of our our know XXXX, to as [X/X/XXXX]. that overall that's pretty delays seen, XXXX embed of also been adding opportunities from Medicare decisions base We that in are that own the and well. best in of We're Cross Blue Idaho our to been be pleased going IngenioRx has

nice a that's part the add transition. this as well, you of So the brought as as commercial know, business year we on

decision probably So we the our added proposition, in to overall, self-funded year. expect for I question. we're Thanks to largest sales but for making feel very our some as overall still delays business customers, think we this particularly compelling the going

please. one Next

Operator

Sandler. comes from Piper question with Sara Next James

is open. line ahead. Your Please go

Sara James

the DCP? move? Thank factor you. slower Could [indiscernible] about you little that Are Did change? those impact you any there you impacting more was assumptions in bit the are assumption on change a assumption bit talk a and completion getting little

John Gallina

Sara. amount that, you, Great a function days said know, and of as the on is of X.X us. those we to can taken the an the with providers question sequentially some well payable, days we elongation changes you point days have and But of claims going time payable X.X math impact And, impacting days, of year-over-year. many seen submitting way payable service claims from as things on DCP days certainly actually is Thank it at and time up and works. as and claims and of without of the the have claims that to income part the statement, has the we is

reasons you but that lot up of know, the in the that else you equal. the conservatism a book that date for impact business this of cycle know, couple fact during occurred, gone the mentioned all given being to also, pandemic, our entire has submission service Then days prepared I comments. really a in the across that, calculation, of So, claims days time would and of claim

uncertainty the were slower, associated and into And, when conservatism, further turns have later given we with We wanted more higher, releases would bit factors that DCP we covered. caused the turns to loss bit completion so would and the great. and we need And a there's have that the are patterns then we have the totally we bit that out to that that situation. ensure covered. in a And made year to that our we'll if it of a if fully in some a higher the next billing have transparency medical be be that be it then our out ratio year bit

cash then So, know, were those very, a earnings solid things able taken, to as a have percent as you all very also flow result. we of

all they Thank high for quality very point earnings. think question. I So, of the to you

Gail Boudreaux

please. question Next

Operator

Next with Nephron question from Joshua comes Research. Raskin

Your line open. is

Joshua Raskin

morning. book book? Hi, ISO furloughed, then real risk benefits? the sell the membership, a difference book your I I'm in in your any to to Question thanks. it commercial to receiving members And Good unemployed quarter-end don't initiative is more more around ability were at you if the have how but strategic answer, existing my sense of and your And commercial versus do if environment, many the services or but of it's know – curious June still there's around that question that impacting view, is members? current easy to

Gail Boudreaux

Thanks. Josh. to Pete Please, ask Haytaian to Pete. going answer. I’m

Pete Haytaian

we up had lot for of a insights a the Thanks Josh, precise the having that, as to unemployment. at better the cause quarter with membership to in with amount you deep broad than was ended of, exact the the have Gail big, originally And you level. I you to expected in respect information are that Yeah. as refer a question. furloughs you And know terms know, know, of furloughed, said, that folks don't

sort big definitely has it assumption I make associated but factor. a of with So, an don't been that, want to

commercial other less that is had in book, noteworthy segments. The of thing mentioned really that's disproportionately the is which I makeup our risky

government a you and folks state know lot for essential well accounts, services as of as and providing business have of lot services. we So, a as

you really So, feel about know that. we good,

a about at on ASO up-selling selling the services. about talk when In hear COVID to into lot we side, a on around know, improving talk margins those great going strong have a prior I X and of with us occurring, we been have X ASO a value very and bit accounts, seen X to to from would path. the of that say we and our likely, And more could level. up-selling to slowdown our X, were you us X we to you terms X confidence

value-added So, when about think other, ahead deferring a down XXXX wanted know, you we decisions like but Gail know you that bit about we're things COVID of you has and to and provide, and folks pharmacy be, services slightly you you those know, noted, XXXX. slow and and of, because into of up-selling we where been think some a that there of hesitation a as

proposition the bit to seen COVID, the we very as And are on deploy our we have to of we little and as is but it innovate a road, – new as really and X we So, path a selling. value in programs. bump X are in we the to to forward, relates confident continue moving

we additional to services. know, for like beacon, asset example, lot of For when a a it sell, behavioral for you new health example, creates acquire opportunity us

long-term. feel good about we So very

Gail Boudreaux

add really our retention And only seen I'd strong Josh the thing is, accounts. we've other of

So, that incredible that, it, done of then and that versus just I into downsizing, you XXXX, job the labs. gets the and and second has team around thing is commercial sales attrition but really obviously year, this think I'll our your reiterate and the are in-group furloughs out outpacing driving an question know, also coming

environment, the despite business, traction in see product in that focus the leadership. to segment we're under of put offerings we new So, the risk-based our particularly and piece continuing

just of the those So, as I all there makeup helpful well book think contributing I is as our are too. think

Next question please.

Operator

go Stephen we'll Valiquette question next our For Barclays. to of

Please is open. line Your ahead. go

Stephen Valiquette

Great, thanks. everybody. Good morning,

Stephen Valiquette

face-to-face enrollment ahead can COVID? October now technology whether expect salespeople, your this to outlook due enrollment overcome with risk year? have fewer And on Medicare which we not you other see growth think any in-line of still for year averages? disruption meetings historical growth growth for really with and changing you you risk Thanks. can combat curious the next to preliminary is greater own as to do about industry for any in if Medicare period far is this So, in you advantage just to XXXX, overall starting Or think away, the MA that thoughts the market annual of upcoming and see with etcetera, Anthem factors, the brokers, MA what still talk

Gail Boudreaux

question, Yes. Thanks Steve. the for

Let leads and offer more Felicia, business provide who detail. few that I'll me comments, a ask to

where know, months did, over able actually much channels has very been we've see been but the since we it sales originally did a nicely in You face-to-face, when because she hit, pandemic historically recovered just we others, more think, few direct working face-to-face. with we've I in last our there and selling and put much and the as isn't to brokers really slowdown

and and this see look our So to and prior over safety quarter-over-quarter we've Advantage up Medicare XX% had methodologies last I’ll and we in continue how growth, place. working particular. very over you year year members we've as been put about engaging comment the diligently at XX%, we're as as to to XX% you in alternative ask Felicia the know, expect year-to-date year, strong particularly our Felicia? well growth ensuring how we're with very

Felicia Norwood

thank you, you for thank Gail. the And Yes, question. Steve,

our performance membership reference, after improving had Gail and brief up that early to and certainly strong As know, in-light that of slowdown a soon is on as sales we pivot have we've our indicates July actually well. in you seen our time But, COVID. We certainly business. COVID performance in saw since picked sales read

our serve. associates it's safety is of You certainly concern, we know, so, the safety and a the paramount seniors the that of

pandemic. our adjust to in-light processes accordingly this of prepared fully are sales we So,

than going virtual would be in agent know, training virtually that be and more are for fact, will of think activities expecting as activity this held sales well. that AEP. I engagement You to probably of our XX% Similarly, we our more year's are

of us for every guidance future AEP we're monitoring on activity day the as uncertain and that is all that So, you of guidance changing depend of guidance much is closely and COVID well. as CMS going know, to remains

are that to fully can us, prepared very this to that being mindful be head are continue feel are that the new environment, ahead strong sure prepared of XXXX. channel performance we of to agent which make we to sales investing So, including support in the very sales will but engagement so and any buy as the prepared environment, to activity through changes AEP wants be virtual able our in proactively we we deliver and into of the our XX/XX member

Gail Boudreaux

Next question please?

Operator

go to we'll Citi. with Ralph Giacobbe Next,

Your is go ahead. line Please open.

Ralph Giacobbe

morning. Thanks, good

and know, second in the up that of half talked you uncertainty DCP know reserves and the building, you costs about You lots essentially back out obviously come but, there. expectation

conversations and You next know, pricing unfortunately, a year us your really see commercial for I about gone tell Thanks. you book may and timing of maybe you then, what approach XXXX, so at approach the into point, can that pent-up along to lines, with to you guess And have switching expect can't next year? this wise or wait pricing assumption XXXX? employers? for take acuity demand those and push perhaps do And movement how

Gail Boudreaux

Pete?

Pete Haytaian

appreciate Ralph. Thanks it. I question. Yes, thanks, the for

obviously – think, in certainly we our factors, before talked the so January, the we situation. really, said, cost which treatment us majority of expectation and on I the of rates. the but to luxury best of you electives quarter, our and we book do monitoring testing, utilization a We're of a cost to majority all using at have you last many time time. you information we're considering know, mentioned, we the deferred That from this know we of before renews finalize some of about have are additional closely this

going serves to all remain going going be HIF importantly, balanced, going is I that to know we're certainly and are pricing sighted. so buffer. the we're that our to disciplined to think as a we not that will respect away another and trend. short price a important most factor Overall, be factor; going forward really We're XXXX, to view normalized we remain with to in of

relates well. going it As with our clients conversations commercial and really to growth, it's

through. Our is value proposition selling

back to of there when as parts XXXX, obviously, as You other know, Ingenio, business, talking relates XXXX, and as for in and our you'd it it of as some were the some relates decisions was about she half alluded Gail growth expect, to to deferrals.

XXXX accounts feel had pretty relates our we were thought currently, that So know, XXXX about importantly, growing that which accounts, feel just expectations for sales good in cycle, the national it that to to as some big deferred about good and example, some of you for come we through we do would into XXXX, cycle we but groups.

the membership our driver in-group of factors feel or now into lot But we're the not, conversations good has or it. obviously, growing been it then about biggest attrition, good so very be of though the factor this that and think there's right about and and associated pipeline last is importantly, looks the for groups I about XXXX, we of XXXX, going XX do so already days the significant you impacts XXXX. can't change, in well. with cycle most and national, having a know believe selling we unknown for And precise of even our as

Gail Boudreaux

you. Thank

question Next please.

Operator

of America. we'll to of Fischbeck Next, Kevin Bank go

open. go is ahead. Your line Please

Kevin Fischbeck

Great, thanks.

trends It bit if Just can one membership last question those there's as seeing data are there then, members]? onto rates seem you're thinking you're like next [debt year? any whether Thanks. And what about looks you know, preliminary about you and does about getting little next on pricing of year? how the, view and more exchanges, rational on as the the competitors acuity any a now exchanges, far talk for

Gail Boudreaux

the Yes, Kevin. thanks question, for

consistent. of have and or dramatic individual a lot seen the we off on the that overall book think growth then not a delay individual furloughs we business seen coverage I timing. small as the in know, is we [employer] they people and of seen haven’t we've some we overall, And most pickup in re-verification around ACA-compliant we from come but and been think – of sort our the shared, pretty You the because there's individual increases they're there's membership a exchange, at of go delay the today market and plans, when as across it's between has either look

stayed In terms geographies We've expanded footprint where of our made really We certain we've stayed we felt sense. strategy, it overall. in our consistent. in

because too it's significantly acuity on really very changed the much. hasn't plan again, think early to book I

of seen growth haven't unemployment. significant We because

think I important. are factors those So,

strong our have sense where makes is we it and and exchange we we've where think configuration we future, we and strategy the to going our good think expand individual to Blue have. really given footprint where and in we'll areas that. We're been about network our that feel advantage in that we it brand continue about As a disciplined look strong obviously the

So look modest we'll overall, think I for expansion. know, you

with we'll and on played has and well last business years deep teams Our strategy few very focused the that it. continue analytics. over We've got

So, thanks for question. the

Next please? one

Operator

of Taylor Next JPMorgan. question comes Gary from

open, go is line Your ahead.

Gary Taylor

morning. good Hi,

bit well far. mitt more know, differentiated, still your the performing but, all commercial book higher catcher's environment your X% better so an appreciate sequentially comments ask and know, you in You the points. only know, know, Just and know, you'd have of would you you and There about, that, you you up and about, market? I on XXX moves are of here how expectations It fact where is business you know, basis we unemployment think bit that sequentially. X.X%, have, is the to heard positioned, another know, I local that want little you is that is definitely Gail, thoughts a a sit national payer, don't large us group guessed and any down down, know, enrollment change

have few months and has relative June the deteriorated been developed? And last little risk a little commercial color further, fall you but and more more I enrollment you furloughs? all deteriorate supporting that was give point an slowly really accelerate? of will on just Do could how stability there's inflection there the than in a just Has Or temporary a stimulus these June? declines logically see federal know, this off stimulus know this just guess, dollars that, us July July? even down know, where big contemplating is picture, I you're quarter you and where So, dollar’s you the those

Gail Boudreaux

to lot year, question, to assuming me and the continues economy there do do of start remainder well, expect we the clear, less it and operate than want at for with relates further you capacity. we be declines, – a the to There's Yes, the I think Gary. I in know full – as you know, thanks let

understand you that many don't our it. really of and a we as full XXXX their product have. things know, One know, of focus In then couple go to and, predict, about mix unusual affordable we much business you terms circumstances, and think terms we've obviously of you and, know, of groups And sales enrollment the so deep to dynamics our help and price the very our faced what's very offerings some the of teams is solutions, have opportunities resilient puts know, done back we different done are out set type and is. to that – of part the know, to credits There we’ve of we provide you the where it's are I and broadly can a to we recession hard in trying of think modeling, that in point. stage, whether reach really because reason local the they it's are premium key at find lot and is, rate of different, But products unemployment think make takes as that work to that on factor. our this about year more guidance of you of brokers that, is that meet or with that them Two, things. on sure I right do what our I'll business the our the to to more so

Our retention is strong. really

this we signals strong. are we're real You but stage. any – of, changes again know, There's early changes or seeing, early, are at about July asked sort really acceleration not into seeing you

of will predict strengthening the happen economy come what think to It I again, and up, exactly do. decide they We when So, there furloughs. know, happens can't people what's resilience are that showing what is on but you the under going still to depend and employers off.

in nice them portfolio we employers lot ago to while the programs finding think, keep think, the broad that our a I I predicting didn't we differences, again, team of give have commercial job that I They've credit. declines with under are their our a team overall years insured has big real of and done business, So really that's our of solutions employees one of a offerings. do give – and and options, further really

that again, gives of that solutions we the it employers you hopefully question, your one we that answers have a and provided but feel we've So know been – little that But predict reasons the year. been sense has to of and you attrition that's this one retention the through strong expect also to very in thing it’s that's help. very we rest that's and group a hard stayed –

Next question please.

Operator

go we'll of line Next, to of the UBS. Whit Mayo

go open. ahead. line Your is Please

Whit Mayo

like? really seeing are employers any curious this how sure not or looks coverage grasp reinsurance just thanks. have in not you changes Hey, I'm any sure cycle. or the loss know, employers you're market XXXX, approaching, stop the know, good less I for changes? market looking are renewal What Just on the not more protection? Whether what for, through a means you if

Gail Boudreaux

Yes, thanks for question. the

of really In in difference been terms pretty of a trends and It's things seeing, consistent. whole we're that haven't that we marketplace. lot seen

know, on and dedicated our, stop that also works business focus and a that we across You our to know, self-funded on team loss both you offering have clients.

stage, no So no, real trends. or significant this changes at

Next question please.

Operator

Bank. go to George Deutsche we'll Next, with Hill

Please is go line open. Your ahead.

George Hill

should growth in and billion a kind say credits subsidies Yes. I $X.X what the that if the And during expectations guys. understand year. basis morning, should And out of to I of you between did to points I where – guys for took Good to entire and premium trying And taking hundred John, I I the for can you I questions. the thanks as not guess the first, utilization when half, kind guess that other have have the utilization that's gross interplay case, of clarification, you the a net seeing, account up If you guys would effectively I'm were quarter? we know, question the think guess see kind contra denominator, the numerator follow-up that a revenue you about opposed it this net you outlined the over been thinking kind that the my $X.X to call utilization here? of of revenue reported? you spread And billion expecting gross you trying going then, going is – to we the couple was think guys of how from growth back was should

John Gallina

earlier. opportunity could you thank the appreciate have the a bit stated little clearly clarify more George, for been that maybe anything question. to I

to in things the many timing they're and our we're comprised is different community. earlier providers to you providing of we’re we're that things system. which when to loans were being credits certainly customers, the of providing to some as they was the credits all are the commercial things and in liquidity writing that the There's billion providers of to support And related different all second premium specifically My marketplace the to are incurred, hit terms in of providing of and So, will associated statement and them quarter. aspects. premium with providing to know, we're certainly not the grants $X.X recorded income members, various comment value entirety the

However, part XXXX. of every $XX of for obviously, COVID credit other various next to for with the incurred that billion paying COVID every providing, and the anyone throughout PPE is example, dental we're the would testing six encompasses the year, the also visit also that $X.X months. us in that last rest there's for dental cost be waivers the to deductibles incremental Obviously, for And associated provider diagnoses and associated incurred have occurs then, $X.X all a costs out-of-pocket an few for the months with has of and will been and treatment, billion. that COVID of that that

when that recorded the quarter that's obviously, will in be well as So third incurred.

with know, social issues, second in that things foundation was the the for community, including a all quarter. million you of done recorded the – So, the the funding $XX lot the associated that we've you know

there your hopefully recorded that's So to that a commercial clarifies lot And in the year. is that a all significant incurred credits the second It's half on premium in parts be amount were latter of the just going quarter. question. of but the there, moving

Gail Boudreaux

Next question please.

Operator

Robert question with Goldman Jones next Sachs. Our comes from

open. go is line ahead. Your Please

Robert Jones

great. Thanks question. Great, for the

scripts quick your that guys you meaningfully. down, know this two know, you at quarter Just I know, you back point. into noted One pretty Ingenio, were the clarifications on

but, in Ingenio understand people actually you the revenue I up dynamic think know, will there, sequentially. was

I just in guess sure down in was investment if the make was much. I know, play of curious we similar to for took Thanks dynamic a so think should net there then, understand year. that how about want balance income nature there anything at just there? just a And step the you quarter, the and So one-time the decent vein,

John Gallina

to on. that Related as well profitability ASO industry, product thank as as are there sold, to of are question. to I performing, goods with Yes, yes, And, increasing – all continued revenue, a recognize for our want the answer issues that accounting of we or appropriate PBM to just about as that them is the you accordance you the result make know, the made times. I sold had And business, of within and volume one-time well cost to just increase incurring customers in and comments PBM our many the on how and by the and our question certainly script X-to-X cost everyone revenue. of income context strategies so revenue our expect penetration the growth able uncertain earlier are those of rate these incurred X-to-X to product of goods in cost and And we has statement going customers grossing would ASO utilize yes, IngenioRx for for and some the one are some that it's of drugs PBMs that penetration be non-risk this up how the see to PBM even are in that of services. product sure overall

line in continue but know, element statement line terms other, revenue. key offset that's – to of as key bottom those growth see income you no each a item. that in much of we really items factor, a So, Not effect should

in back March as made build you up sure very liquidity you maturities. XX% decision portfolio want have the with our immediately. liquidity is but I our we have that to of that could everybody's trying first occurred and that marketplace, the all, Associated cash know, positive invested the about not that and flow to position there's fixed one-time some issues to so enhance of know, reinvest April, of access clear part to in know, And, make high-quality income, in clearly our just investment we to you

a on investment the actually And income points a know, we basis would rates then, drag earned year, otherwise. the early so in total. the that have couple Fed, And in put you dropped XXX times

third But and that we're money associated that's new rate with obviously, the so, that investments. investments. alternative invested most fact in the And really impacted also is the significant difference the one

that is mark-to-market income And fairly trajectory. alternative know, know, was well the it's [indiscernible] You and changes income the in you second what nice includes a in mark-to-market investments our credit real did market on terms investment the in worst net the immediately, versus you're And the equity, of diversified income markets, strategy value diversified quarter but, and impact in investments of energy. statement energy core performer. private through that seeing broader statement in the on any alternatives estate, the our changing

the I should of rest that but per dollars for the our income exceed hundred results, more that. historical investment the to think opportunity clarify couple expect with million a that for thanks quarter will year you line in

Gail Boudreaux

please. question Next

Operator

comes Bernstein. of Wilkes Next Lance question from

open. is ahead. Please go line Your

Lance Wilkes

a was with just and magnitude into outlook process of at you about cut a little of you're Medicaid proposals maybe to, Thanks. discussions bit could And there? us or tell looking the rate a state the understand maybe bit to talk date I kind the you've pricing if the of rates had help Yes, kind states involvement scale and level little you if out could as XXXX us there. about wondering

Gail Boudreaux

Felicia?

Felicia Norwood

Sure.

pricing XXXX… when outlook you for Medicare So, our think about

Lance Wilkes

please. Medicaid

Felicia Norwood

Oh, are rate January. middle you Lance, in have Medicaid. Oh, certainly XX% the states About of know, for with we discussions discussions our state. of our rate our

partners. the of for In-light a our January in now, state. So, you quite right is we're on there's having of lot that's our half imagine can state conversations fluidity everything state with going of

you bottom state the in actually discussions take at are, rates sound. we foundationally when and require Now, ongoing the portfolio, look partners. where And be we are of our a states they think provide across as respect line year. have you with many continue a engaged and to always to XX us country, our going states and those to asked populations as Many which head of the about on is our have to of going some to Lance partners, what's updates basis, we said to the of see respect essentially now those with between month-to-month want on regular end what's are with

So, with certainly up state [as focused to in a When certainly all And now see that our performance. over dialogue, right And performance and in continue to engage of expect our course what's pick our on any respect on respect and the access all health. are the partners to respect members, quarter this would is of going during utilization And particularly care done, one to going the care sure what's will but around on to that the with on this long we is make members very expect partners year. we will state behavior back what of kinds reflect really half game. of it's with weekly said almost we in population with trying taken are], year. needs, a basis with which to we time in to won't our are

now we discussions back between the our as year, processes and these ongoing half of the our in are So, partners. continue engaged state with we

seeing exchanging the should with that half the what are to I respect XXX,XXX membership expectations perspective what that members acuity We to from back we between reference, like, looks and with our and those of performance and now are the of what new year. performance, respect information be regularly

So, state likewise business, this more is impact about to will going state we the with we and with will do our partners our us. an make updates with iterative process as virus to they be and continue the partners and our on learn

So, thank much. you very

Gail Boudreaux

please. question Next

Operator

Markets. comes BMO The of Borsch next question Capital Matthew from

open. is line Your

Matthew Borsch

you. commercial, just you're month more the more seeing is spending think us percentage as had talk that, of just that Medicare you interesting? is detail said offset was a was healthcare you, during as a within what June. commercial additional Thank know, Medicaid, the hoping lower could be really you I of Can you about by I XX% about would but know, you at imagine sense, that I it lower any Medicaid, give and normal

John Gallina

as very another the here we then July, deferrals just impact that marketplace, And then well. the is how made Yeah, procedures had And much, reiterate pent-up commercial significant of understand the that of impacting trying closely, actually deferral much on in impact in for impact less deferral. most monitoring and there in the little of comment thanks, and we, to Medicaid question. earlier middle is the was to demand said what the are we're that occurred it I the a spike is Matt, a COVID Medicare in and the as

delayed that like such in can is and so, And only the procedure. in the long until is significant actually procedures go the replacement other things but joint be person know, get the severity seen pain you procedures, we've an so or increase some and so as, going surgeries, to

we moving So, know and there, parts a Medicare head quarter. has has impact as most lot you here of but, into the impact significant actually commercial the minimal third

Matthew Borsch

thank Okay, you.

John Gallina

you. Thank

Gail Boudreaux

you. Thank

question. Next

Operator

Next question Windley from comes Dave of Jefferies.

is open. go line Your Please ahead.

Dave Windley

COVID any for has permanent taking I to light in. questions wondering structure the and more that cost was crisis a of brought thanks nature. changes my me might be if squeezing Hi,

that So, SG&A at beyond for medical cost structure, of real example, in in parody, visits things things crisis? or line, like the looking structures the for things that endure or perhaps the payment just like virtual estate co-pay

John Gallina

just that that getting been the And certainly, the helping here estate things clearly place in future. as it's and about footprint right very those the we well. the find associates various great efficient the maintain workforce real I to It's looking premature care, and are that right the really our to questions. with proud You setting. are engagements know, look all it's And going are here specifically we for digital – are we're that really but probably stay. those timeframe And at closely is capabilities to we've to closer our at look it's that time, that to Dave, productive what right this declare agree members, right do at Telehealth in been for you we've stay. our like, creating and clear we've the are how utilizing type virtual very a are and able us environment the associates our of take virtual been and during in, how really

things. so it's to those be optimizing going And a lot about

down. is know, volume ER You

in commercial of I about really think trends actually that And healthcare the actually utilization sweet positive of get to we that be can XX% right. and seen the find so future a ER is non-emergent, as we've spot that. the

we're So, great talking a daily things here. that and basis on questions about

Gail Boudreaux

what of take reiterate real we're our bit just is and said, at we've and well-positioned. quite Thanks, but a looking Yeah. very feel investment Dave. expenses so digital we a look at that We in we always and to acceleration seen scenario. put our where John obviously a and stay, we admin importantly, And to enterprise, here are, health entire

please. question Next

Operator

Steve me, excuse from, comes Research. question next Willoughby Cleveland with Our

open. is line Your

Steve Willoughby

yes. Two call. taking for you. Hi, my questions for Thanks

additional Ingenio made upside your about cost roughly know, You John if was confirm wanted on approximately million could from earnings briefly I that you to savings first, of million $XXX Ingenio shareholders, you expectations. $XXX wondering just means initial the follow-up just Ingenio, that to to flow or relative a from comment of through

John Gallina

follow – so, the I I'm not quite XXX. didn't

Just let clarify me Ingenio me numbers. the let

and least when the [in savings on know, at days year, gave the back at billion contract that about to guidance we XX You of of the would ago shareholders]. we talked the that beginning $X XX% order

million. XXX to today your million. raised approximately would We've that So that be XXX

previously Anthem that business ASO recorded that's segment been PBM is reporting the segment. has members where had commercial XXXX services have XXXX, services. has we that in and in that historically starting commercial million op million Ingenio reflected reclassified business in been that includes In quarter customers addition, that been And gain per had reclassified, are in in January starting been provide business the of PBM to that And IngenioRx historically our had $XX from the now to with we division. of $XXX those the segment actually for the contracted

things with party third that and earnings the business, Ingenio Hopefully other so in another that those segment of the business question. of but or profitability segment. segment. vast majority that we things the overall other the [IngenioRx] in company include vast, for PBM And two parties, have are third very the a clarifies the the would the And your small is we're

Gail Boudreaux

Next question please.

Operator

from The next question comes Cowen. from Charles Rhyee

Your open. line is

Charles Rhyee

the of of which that the sort follow Yeah, the to, because to benefits, up I thanks. wanted half mentioned taking talking expected – you as the membership about that were year. earlier than think expected you I about pick less on referring from I up the back the to commercial question. Thanks enhanced I've think being attrition but and for of and in

end the like enhanced You uptick know, seeing to membership guides they if that, in areas this would benefits related extended? like what shifting to here into expect exchanges are an Because around or see July. it are And you you your assumes seems that COBRA? in

then you So, and know, membership, them see those – shifting if the aren't Thanks. do more into extended, you Medicaid?

Gail Boudreaux

not question. know, I'll Yeah, a There's that so moving just this color. little lot parts, you there. there's thanks the for give of a bit giving of in part given many you is And but we're guidance,

increase COBRA, First any low, Cobra. in the we very It's seen very, cost of on really given haven't structure just COBRA.

different XXXX changed hasn't at or from all XXXX rather. that So, very

because significant I terms a In earlier of the response, have questions, a exchanges on other mentioned impact as not seen unemployment. of your

of Clearly, think that attrition the we've group over and to some exchanges sort just growth the again, in see relative that do we know, year. do some and you unemployment. to increases the course employers of commentary comment half really we that made pattern on, going the delays. it's been think back we and can't So increases I do normal of are we'll what the furloughing expected there's

the You end you enrollment of know, makes impact to is project rate current enrolled. give But challenging again, of of unemployment but our the seeing we're and know, the you know, year result a is expectation people time. at the our that really at that employers this to the think keep it reasonably little over executing I high improves to roughly, business what to options in retention results XX%, strategies our existing segments keep

occurring. numbers the high of the based Thanks retention So and we're group our that the groups for are inside attrition seeing decisions is employment are are those question. and on

please. Next question

Operator

question RBC Frank Morgan comes from Capital. Next of

Your go line Please is open. ahead.

Frank Morgan

Any second segment? [one you give to or I in you're at periods last I about X%. real July? how in the a and maybe if ended on quarter in commercial mentioned was you quarter, June half updates X%] around on it one. think or quick the the Yes, between an Thanks, quarter your curious granted grace could doing maybe was update

Gail Boudreaux

Sure. Pete answer. I’ll have

Pete Haytaian

partnering and you are Frank. employer partners recognize with question, approaches, the of encouraged And see as for thanks also times to, Yeah, broker these We payment obviously, know, and other on started, we focused instituted periods, since been ever variety we've unprecedented are really a we grace with together. collections. COVID our but we're that said, All alluded you through very this options. with where to including

the our groups of of typically You mentioned that you you like book seeing, a seen of premium in really book in COVID, good that also to makeup segment, pre-COVID. last utilize mentioned a with representative call, you months, X%, lot normal up being for collection is rates payment that we've well at premium periods. see we of patterns. our of fact, And – we're the could know, really, a small payments, overall at, And environment look there. group which indicative couple essential And about X% with that the I creep following last When an improvement. it's as actually with lot, held was, services, skewed to really know more overall normalized that, example, time, grace then our but patterns local expectation

real development. a been that's overall, positive So,

Gail Boudreaux

Great, thank you.

I one for think have question. we time last

Operator

Newshel Mike Evercore question final of our from ISI. comes And

open. ahead. go Please is Your line

Mike Newshel

suspended healthier. being know, those tend was wondering re-verification, driven that since Thanks. would growth whether is if Since to a relatively margin Medicaid the you by confirm enrollees could the as primarily be turn, tailwind, well I enrollment you're would seeing just be otherwise you

push of does that would resume there's Thanks. at re-verification the the pressure now margin faster reversal margin potential track and expect or to rates states So, you effect a mitigate some work you there that time? to point, to re-verification with enrollment essentially data is when down some the see next again the record, when pressure, know and and

John Gallina

you question. And, risks that you the quarter, that's that of the match. Yeah, the know, acuity Medicaid that in we've that said the associated is no, revenue with almost always things the have thank that for it recognized never about we and business a the and typically risk particular is one

and Just and it having we out bit – little point who a a business your which vast increases is them the true-ups year But decreases members of is of have those you especially you when of just have. period rate retroactive such change remaining well the states and to overall a did of made, very acuity etcetera lost that within adjustments and Medicaid, would way a large perceive because better overall when the ago, be we acuity portfolio acuity.

will So to sound we clearly, that or actual have with and the early work continue we states rates. ensure

the both very change with really with downside you the I'm know, provide know, our as of in will, sorry, It as, position help states, of We risk limit really corridor associated a well for rates, that upside well that. are balance risk majority quite you well that think significantly. does our address help the pretty acuity corridors point issue it bit, know, that a risk for that the some been protection, majority or it you I the should we've you but made your sides know, do the but equation, of that is time, advocating really

question. So, appreciate the

Gail Boudreaux

for to like today. And I'd everyone thank you. call Thank the joining for us

associates, As dedicated in and ability these remain who we as shared, Anthem change choice those in great headwinds, confident serve our societal industry. our our has to I and healthcare our Anthem the partner for Despite shown resiliency strong of than now more need us times ever. trusted of agility in brand,

we leadership safer, more and for move experience continue to you. effective a we all voice and our XXXX, Thank lend healthcare As affordable, our we’ll shaping forward serve. more in to

Operator

Ladies will of and today through be Central after XX:XX August replay for XX. available this A.M. recording a gentlemen, conference

You conference for XXX-XXX-XXXX (+X) our and participants your This can may Those XXX-XXX-XXXX. replay dial, conferencing. today. again you Verizon for and (+X) for numbers concludes access Thank the dialing by participation International XXX-XXX-XXXX. using XXX-XXX-XXXX. are

disconnect. now may You

Elevance Health (ELV) 29 Jul 202020 Q2 Earnings call transcript