Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Elevance Health Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, where participants are encouraged to present a single question. [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. ahead. go Please

Steve Tanal

call welcome call. and Investor Health's quarter our fourth and Good CFO; is of Boudreaux, of Haytaian, division. our to our Steve and earnings earnings on Government morning Carillon; This joined Gallina, of Gail Tanal, and XXXX I'm Division; of President Specialty President morning Business this Peter Elevance by Vice Relations, Business President Kendrick, Felicia John and Commercial CEO; our Morgan Norwood, President President

outlook with call highlights Shield the prepared Q&A. and will of begin brief updates and discussion John key before a for then the initiatives. will Gail and our remarks, of be of acquisition of some a greater available of strategic of year on Blue of other detail. Blue After Cross XXXX the the for in results quarter team our discuss number the Louisiana recent and will our turning financial to announcement

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

making also this We call. be will statements forward-looking some on

to Listeners difficult the and predict SEC. which that of uncertainties, generally in certain press are the and release today's results are current expectations. to our Health. risks many review these discussed statements are beyond These factors filings We from with Elevate actual control differ cause our carefully cautioned can and materially risk advise of listeners and the to quarterly in risks to subject uncertainties

over turn now call the Gail. will I to

Gail Boudreaux

another transformation a considerable fourth long-term that Today, quarter to progress consistent with and strong our Elevance lifetime partner. delivered good in year and Thanks growth, morning share everyone. pleased health become our of Steve results, trusted to closing out targets Health we're

GAAP share of delivered per In $X.XX, earnings adjusted share Health earnings of $X.XX. per and quarter, Elevance the fourth

XX% year-over-year GAAP in of we of baseline and from year, of $XX.XX full reported per share our of XXXX. earnings $XX.X adjusted reflecting and share earnings adjusted growth the per For $XX.XX

earnings and per to target in our sustained XXXX year marks benefits focused the health invest or and XX% high-growth consecutive growth our services. fifth within long-term reflects accelerate opportunities, share we grew capabilities optimize rate. the businesses, This execution of above adjusted to strategy our in and which XX%

prioritizing ended customer Health more helped medical health X XXXX, members, new to commercial across nearly than solutions, investments million all million deliver year-over-year, serving million experience, engagement, up including customized Elevance innovative, members million XX.X equity, than delivering segments. whole members, and enhancing deepening health new X the strong over growth in and government X.X more digital customer

our the propel growth, Elevance and Carelon of with XX% Health growth operating nearly plans, Membership double-digit double-digit Caroline's services. scale in for to both business the earnings. coupled expansion growth in with health in produced adjusted revenue and total, growth in and year, CarelonRx scope In helped operating

years. the of to committed deeply Louisiana our is the almost Louisiana for Louisiana plans, and improving health Blue to Blue Blue that Now, a Cross, like of acquisition and Anthem our Blue plans, developments, just its serving in health Cross of of Blue of is number Blue XX And we Shield recent the announced lives Monday. discuss Blue family of Louisiana rooted Cross Like Shield Shield and I'd on community, Louisiana. and of Cross local Blue like Shield including of people

for of a now. are have worked our organizations number in through in purpose. in and Louisiana needs dual and partnership serving Blue Alliance, our And mission years special plans aligned together Our well Healthy Medicaid

Louisiana we local Upon bring new of our and us access to an closing, portfolio strategy accelerating support the innovative million and of community. market, even to serve. difference health they Shield and greater will and looking forward X.X of providing of to Louisiana Shield Blue lives scale deep individuals the Cross a the make solutions roots while Blue be Blue We're capabilities national Blue to Cross Blue XXth state, our in in and with

best contracting at XX Blue example million our when Shield to group untapped collaborate. we benefits leverage this a by Medication unique and Blue investor some plans Blue health to our all many is year, nearly scale. founding One a system affiliated states. Collective. recent Together, Earlier in Cross of provides this Blue Synergy we Blue Cross opportunities consumers became the XX are Shield founded are new companies. organization across There

Synergy and setting. representing The infused partnering specialty best-in-class Blue's in enhance our medical improving affordability spend toward or medical drug drug another example will on injected are that drive for care progress. pricing, industry-leading to collective to affordability, seek focuses a leveraging value-based of access drugs and clinical specialty collective

Elevance specialty conditions. patients directly living and independent largest complex Inside November, addressing fast-growing for with of pharmacy In a trend. acquisition provider also chronic areas pharmacy of are cost Health, the specialty announced complete range we of services BioPlus, the we offering

to field, growth to and on ability specialty whole our enable our health what bring biosimilars. time, enhance greater access to is will us and promise time Over medications. affordability pharmacy fulfillment for will deliver dynamic it given resources at to our critical us leverage and to the BioPlus deliver our a in of anticipated members scale this in-house, allow

addition proportion and expand our beginning will with services this pharmacy by we at of rebranded and services or the the closing, extension, we pharmacy, scope specialty of overall Upon spending healthcare capabilities the the CarelonRx, inside become business we Carelon of part BioPlus of of manage the year, that of that will address.

health within set to XXXX our of Of Carelon. capabilities least of revenue of to $XX XX% three The came XXXX, Carelon ahead testament benefit billion nearly scaling needs our Carelon's at years beginning own. in the a growing of XX% services acquisition XXXX. by goal of Conference This expense approximately XXXX, plans. achieved partnering we the managing from of at our the Investor March to schedule, with suite consolidated our address is with furthers BioPlus health plans in commitment of our Meanwhile, healthcare

Carelon planning investor next our has March since New investor conference, we on be XXXX shareholders look which last City. will forward significant Thursday, our providing conference. And at XX, to progress held our York in on an update made long-range

Increasingly, of we the health enterprise down growing are Carelon And Medicaid businesses; by addressing Medicare services. scaling health path through two we're needs primary our continuing and benefits our and benefits evaluating and businesses. commercial, healthcare the of

health report health operations first with for Rx between quarter with align we we external the and split reporting begin our government commercial Carelon single segment. Carelon purposes into Carelon reporting combine better Services, Beginning benefits of approach will evolve XXXX, this to and and while to benefit our a

reporting strategy supplemental clearly reflect the strategy track are how we stakeholders John in reporting making results, more results allow our press against and this a can our structure a Our to at evaluate progress also the find against structure enterprise and will release. in enterprise today. more we will his this discuss year business you our XXXX new of morning's and new pro forma remarks, view full table better quarterly

I'd on for XXXX. a recent highlights discussing like to Now, few before touch our outlook

care for our pleased focus plans, the in results. health During nation Medicaid to the fourth National membership. health and resolve the of we all XX% accreditation the three-year earn quarter, Quality demonstrates Committee to from become that organization Assurance the covering nearly first for yield our equity Medicaid full of This were own managed recognition

countering and dedicated partnerships our to been have care health with through and providers. We equities enterprise across long

through work continue pursuit practice We outcomes humanity. to and the ultimately toward for policy better improve experiences and health to of equity and in of all, health

year. Medicaid, care access uphold prepared ensure due Our administrative commitment Medicaid beneficiaries Medicaid We is for to will who to coverage look minimize understand no this of continuity ensuring and to eligible coverage subject to working that to for the partners alongside for help redeterminations beneficiaries longer eligible by to be populations of through forward their challenges team underprivileged eligibility options. loss coverage all to state for

being ACA Medicaid almost exchange to every plans in as of are move We they coverage. members, employer-based those states. now county in Our Blue seamless XX and prepared plans remain our transitions exchange committed into ensure or offered

in substantial pandemic that XXXX. has and going optimizing didn't as risk with commercial it that that brought not reimbursement business we've commercial our compression payments rates in uncertainties since adjustment risk plans last businesses. and plans, recover in been in our in repricing COVID resulted bonus and Across we Advantage in discussed zero. are in our year, health we revenue enjoying It quality health XXXX XXXX. margin improved apparent costs our star become to are And business, and Medicare Medicare are our The we we our

attrition in Medicare discussed With begin commercial, recovery plan our year commercial Medicaid Advantage and on when January we than business margin in businesses renewals Xst. in the and more behind confident XXXX in the and the member improvement for April anticipated underway, to offset Medicare previously remain redeterminations X our us

range our operating been underpinned our Advantage took Medicare long-term a solidly target X% Our we our business to margin inside has in which bid in approach. confidence strategy, balanced by X%

XXXX. While to AEP targeted close than our membership rate somewhat prior Medicare expect competitive proved be the expected, we Advantage relatively we more to to grow growth still in

our XXXX. Turning for now outlook to

We $XX.XX XX%. share, than expect growth adjusted per earnings of greater reflecting over of

and of our that invest benefits to high-growth earnings and optimize enterprise reflects of execution capabilities business, will guidance double-digit health businesses Carelon our in accelerate the in opportunities driven in our focused health Our growth operating benefits be each strategy, by and services.

possible and for Medicaid redeterminations and our achieved would coverage range in and Our detail. margin have commercial pandemic and hard in loans. XXXX recovery dedication of more XXX,XXX not outlook of associates. expectation Medicare than greater aero been discuss growth a work John on shifts contemplates strong from our The outcomes the assumptions our will we without retention

and Our make making them to and difference I and to as they do like unwavering, the meaningful every work lives important would day. thank impact look Health. to we Elevance is collective communities the for they determination a forward improve

more Now over results. to operating I'd on call the John our for like to John? turn

John Gallina

Gail, everyone on the you, and morning Thank to line. good

solid year drive continues targets. to against closing have long-term The financial results, focused We are strategy strong of enterprise our fourth another on our quarter for delivered growth Health. execution stated to progress Elevance out pleased

ahead Fourth our annual and off to expectations XX% of reflecting to baseline our $XX.X, per long-term growth and above quarter earnings earnings share of $XX.XX full-year $X.XX adjusted XX% per drove share of growth earnings XXXX year-over-year was of XX% our target. per share adjusted over of adjusted

by year-over-year, X% part acquisition million In increase. more the of by nearly than the XX,XXX by XX.X quarter, suspension Medicaid with We $X.X Medicaid, Health, XX% year large our in growth organic driven members. million up added ended members, overall XXX,XXX ongoing the membership medical in led which eligibility of and comprised Vivida with fourth redeterminations having growth grew or members, the of

approximately X.X operating was year, XX% over new government the net we million and the added Total in our nearly net For benefits of year, year an million $XXX Carelon. in members. billion, health growth X.X for commercial prior businesses members solid the full momentum and increase reflecting new revenue continued

year pleased are accelerate with capabilities over the and revenue the grew We XXXX, service services to progress as Carelon Rx Carelon by our respectively. XX% made and XX% during

of quality expense quarter business, fourth benefit in the expenses. over Medicaid the margin also a XX.X%, ratio was of of benefited certain consolidated underwriting expense an by performance benefit were from These improvement XXXX. plans. the The improvements the a XX commercial and than includes Medicare basis higher improvement which our points reclassification health commercial fourth carries and ratio partially offset strong for quarter decrease This

in full SG&A the fourth quality impact with expenses strong growth and CMS an was negative the was XX.X% the the improvement Health's guidelines. expense primarily the overall aligning in certain reflecting Elevance by ratio full and improvement points improvement SG&A year ratio positive operating XX.X% include quarter results related leverage for to These The XX of fourth with on associated revenue. year. quarter expense basis driven in

to In produced than of year stronger net operating prudent year better and cash representing the another strong membership risk-based X.X XXXX, was maintaining outlook income, which of start and $X.X balance billion, was growth flow significantly driven a times by we our sheet.

expectations we we certain debt-to-cap timing added operating of Additionally, will now million our over to ended expect quarter that targeted state-based the cash relative within with in range. to a and XXXX. guidance, to the partners first $XXX initial of quarter that shift in line of payments ratio XX.X%, our in fourth XXXX the our pay We with flow a

$XXX the we stock During our repurchased fourth shares million of million. quarter, for X.X

opportunistically million X.X repurchased $X.X as outlook periods exceeding of advantage we volatile initial the repurchase for XXXX, year, for in took the the and we market shares. shares For our billion,

quarter. year-over-year, Medical our maintained the compared growth and with payable with and third stable prudent approach a XX% premium of days Consistent ended year year-over-year days, an increase claims the XX.X%. respect posture at with throughout reserves. pandemic, claims X.X the over to XX.X we payable of Days grew revenue to

all XX%. billion very share strong income. and operating XXXX X.X or grew by a by was claims and grew nearly per revenue gain stable we by grew of adjusted XX%. earnings million, grew $X.X summary, X.X-day nearly increase over by membership in year. We We medical a In with days payable ratio, flow XX%, loss operating X.X in a times net cash We

services outlook, revenue, to provide more I our quarter division reporting detail Carelon begin separate the on health, would pharmacy a align advanced disclose scale will third-party and to operating and strategy. our enterprise to Rx. gain Carelon assets, our of as Services and our to services Carelon decision and diverse segment our to for with plans. expanding and XXXX Before of complex behavioral remain services we provide suite digital turning to services, external to a provides and we and offers first like operating information care, better with across Beginning committed of analytics own XXXX, operating adapt scope the and margin business Carelon health separately Carelon

health our health and become increasingly addressing we've employer, evolved to scaling our the and needs also of that the benefits decided As into have it's we Carelon plans the outnumber And down health Medicaid a commercial, differences. apparent path have health benefits our similarities Medicaid continued products to businesses, single Medicare of division. the individual, Medicare, combine by between plans

government include benefits Corporate as earnings commercial the revenue group expenses. will amount of segment and well The our new a segment, businesses, of and non-health as will currently The combine non-Carelon, unallocated remaining from health benefits business that corporate the and Other same small businesses divisions. and comprises specialty

reflects old as segment, our Services comprised included been has group, other Carelon of same services, that which group now the business of the In Carelon the businesses historically part segment. diversified

to time will of more consistent so with for the doing performance enterprise begin excited primary we be businesses distinct organization. of and two disclosing are come We how the and our to our for to years a manner in at strength grow our

see, press which As extend margin health our Health segment is this our provided plan reflected will morning. and well you in is our margin can into underway commercial Benefits release recovery XXXX, guidance in

quarterly morning's full a forma also revenue our new ensure alongside for metrics in for new reporting supplemental for showing release, CarelonRx and To a that used structure, structure XXXX reporting transition have year table press smooth services we this pro each Carelon included our performance can to supplemental and be business. results model new to

health care our new and to commitment allow will stakeholders our Our whole unwavering, the clearly our strategy. progress health making elevating advancing track enterprise health and structure is more against we're reporting to beyond segment

our for XXXX Now, I'd discuss outlook in detail. like greater to

our sixth us $XX.XX, XX% compound share annual long-term We rate guidance a year consecutive over are growth with adjusted provided earnings earnings produce pleased growth have per XX% consistent per than of to greater year-over-year, of of reflecting XX% putting initial target. share, track growth in to on to

resume. but of demonstrate and also business the be we health our and membership in our health and we Medicaid we will low's, a pandemic era plan commercial margin execute balance resilience eligibility as XXXX of redeterminations from impact when will normalization benefits year the margins Medicare our of the which businesses recovery offset planned than optimization, more attrition expect will of

risk-based million anticipate XXXX, we the membership at to up repricing million XXXX, in despite redeterminations. For XXX,XXX ending membership is growth the X.X the and over members. in in of midpoint, commercial range Medicaid medical X.X year Commercial expected

approximately group that partially expect by we our Growth discussed group XX,XXX attrition up group and to commercial in membership XXX,XXX first risk-based large the the approximately by with individual driven decline by Note offset repricing risk down business, and quarter, driven in earlier. risk-based by small membership, will be risk-based approximately individual XXX,XXX. membership

coverage. Medicaid anticipate group We to over the and in year, from in consumers commercial half, risk-based balance concentrated second transition individual as of the growth the membership

shifts expected into approximately scenarios members is membership macroeconomic year-end at and uncertain The midpoint Fee-based a the million wider-than-normal XX.X XX.X XXX,XXX of to backdrop. range million of XXXX. at coverage to plans relatively contemplates and out to Medicaid, grow related the employer-sponsored variety to by

with this one-third of expect concentrated as consumer's heavily in more We balance to quarter in Medicaid from coverage. the year occur the approximately of half the growth the to back first transition commercial

by in million XXX,XXX the Total member membership will range year both growth membership the to million in over members, midpoint. end commercial mark. X expected members XX XX.X pushing with XXX,XXX approximately the our to over at up membership grow of the to Advantage is and group million individual members, XX,XXX Medicare

million year by eligibility of on the macroeconomic of course This driven expected Medicaid range developing with beginning of XX.X prospect of X associated XX.X and the XXXX. redeterminations a range redeterminations contemplates pace range membership wider-than-normal in is of the on over this end April million, of scenarios attrition the to the year. to headwinds the

And finally, end is federal million, of over the members In Medicare the we relatively and employees' at medical in our health million total, benefits memberships to XX.X be year-over-year. to growth XXXX stable of range expected XXX,XXX expect midpoint. reflecting membership XX.X will supplement

basis and The minus expected performance. related quality loss an improvement consolidated XXXX, basis business levels approximately rates, commercial points expansion improved risk plus XXXX, risk-based with XX adjustment to the in by of the of points, driven or medical primarily ratio reimbursement Medicare re-pricing Advantage, XX.X% star and be to across compared margin in XX is

higher health at in by reduction business. plus associated offset ratio SG&A XX partially The is a or growth by our growth of basis leverage ratio SG&A be XX carry Carelon continued with expense in minus benefits points revenue, driven the businesses, basis operating expense expected XX.X%, points, to which than our midpoint

approximately of being XXXX, per than the the the adjusted expect gain growth and of $X.XX billion, the higher year of income rate range is billion, line, to expense in rates. to XX%. reflecting least XX% reflecting to billion interest interest And $X primary impact XX% be share. Below operating for expected be again, $X.X at driver over growth be the investment be we both in effective greater of tax to approximately expect We earnings to our

flow outlook million X.X operating our timing, a Medicaid delay billion, full that Adjusting net we be greater Our the than quarter approximately previously including pay $X.X unfavorable expected of year in GAAP on impact billion state expected our partners times of would $XXX cash the certain of to approximately is to $X.X payment than believed income. flow fourth or the we be for cash XXXX greater XXXX. timing will

We expect repurchases for outstanding. year our to $X be the XXX weighted in year of approximately share and fully to XXX billion, shares is diluted share full of expected the range average count million million

include does the pending Blue Louisiana, BioPlus XXXX year. Our of of will and the which or guidance Blue expect later Shield we not in close Cross acquisition

earnings on is neither have Importantly, impact a to XXXX. in expected material

Health in At the year-over-year. XX grow margin we XXXX, level, up XX basis upper operating to year-over-year with in to the segment single-digit Benefit operating expect segment to points mid range the revenue segment percentage

to year-end by Carelon from XXX CarelonRx percentage single-digit double-digit adjusted organically, per expand And in in the Services Carelon all range in margin operating excluding range revenue driven by growth in we to script. single-digit XXXX. the upper year-over-year or pending adjusted at revenue is with growth mid the low Services basis grow single-digit XX points in serve low expected We revenue single-digit growth in expect consumer per grow grow in to XXXX. as served, we and expect low revenue million scripts expect M&A, consumer XX range to unannounced to

adjusted half in half ranges with to earnings profitability modeling expect slightly full of projecting respect the earnings that per seasonality. patterns first share XX% than consistent consensus to slightly current more first seasonality, than our of the year more in similar With of we quarter, the earn of with to year are historical and

capital are Directors shareholders on that per to $X.XX approved XX March and Finally, March increase, share, share our returns announce we XXth at of repurchases dividend XX% a be on remain our quarterly and to our and recently will the annual committed through increase in to Board to enhancing XX. dividends close of business pleased paid record shareholder deployment, of which including consecutive regular

we deliver lifetime, In continue year we strong Elevance for closing, well in in of targets are XXXX. will and XXXX our path strong as on we to We trusted from insurance the New discussing transforming was down another in another XX, forward City Health of Thursday, a enterprise company March health our a growth growth look positioned our traditional and with long-term health year partner, of targets to at strategy investor upcoming long-term line to which financial York host XXXX. conference,

please operator, that, line questions. the with And open for

Operator

from line [Operator the question, Bernstein. first to Instructions] Our Lance of we’ll Wilkes go

Your line is open.

Lance Wilkes

little to growth Both business, that Thanks. which segment org bit can of kind talk the changes really place if a you And in the put Yes. support interesting. about, you're in new any? the reporting, is services to intending

of some Care the bit about market expectations partnerships with in kind in doing what delivery you that, and term? long been of your delivery then, And little that's Privia Aledade for care how deployed to you've the date can what and a being with are of aspect just and talk your

Gail Boudreaux

Well, thanks the question, Lance. for

little that. and Haytaian, me what little bit on give color Let a you Pete a asked, then Carelon more who leads I'll bit ask you frame to of

benefits team of who individuals lead. a strong of terms done Pete's our bringing the building actually business, job and the who in we've been and business have having of industry individuals Carelon, org from that First, XX to understanding over both, deep our services them a are structure, health also in months, really taking last but

we've building pretty we and of bench our have So good a got effectively. mix feel strength been really talent

we've shared So we strategy. don't changes, verticals into part obviously, come acquisitions as they envision in, our structural any of that the as fit

there. just little bit a little our and -- comment let more bit Pete So a about Carelon have me growth about

Peter Haytaian

we in We lot a saw XXXX. restructuring. Overall, as of was a pleased went rebranding, Gail lot Yes. around. we question. she as really Lance, a noted, said, performance that for infused around there a Gail. lot we're year, excitement Gail lot, the the which the No, And lot new obviously across in of thanks Thanks a said, with organization. And the as and talent we did do through momentum

in terms the internally, very focused. infrastructure we then, And we're of built

As internal serving health on you our of plans. part Elevance growth know, a focused strategy affiliated core and is

better And with internally. and that so I the we're much to progress associates the in the a numbers our we partners And really hope degree, built infrastructure year. and see seeing engage, through can to good improvement there. the you

We that the remain keenly whole the That's patient in, very else outside experience. we're improving and something focused experience. on in health the focused from patient on looking of terms

say other and trying really that growth change And risk and the we've the innovation culture, on forward. of in is to and and capitation that its focused I'd our And through we're driving going helped internally, acceleration thing has the more the that portfolio. we're terms been seeing of really the working,

within it We're the partners. your our on good a look add lot assets progress at the can of to some relates As it of to Again, question you when seeing care Carelon, there. delivery value partnerships. really

we look create to continue And value. incremental and services wrap so, to around those

And look support have When forward, as stressed, we them. where our we partners, provider where well. to that they as can we mind talk in we are feeling base

that a lot going got there's we opportunity So of forward.

Gail Boudreaux

made how care see our investments And overall specifically, the strategy. Thanks, Pete. some deploying, part value-based those we've of of and terms partnerships of we're Yes. Lance, in as we

really two has examples. XX% Those good penetration strong, by Our been we're collaboration. driven are purposeful around

work learn the But actually, to impact we've how and strategy more feel We and with I of and improve that more and deployed. dollar approach, services capitate that we that Carelon continue overall really of confident closely is care think, to the we about health services. of part impact

downside we important most better part on achieve I've -- to really the before outcomes. need where the is that these calls, of we as shared know And sharing risk

Day, feel And we we on these we so continue that still, calls. arrangements, good Investor about in goals expand grow partnerships but and we're have, the also track at our on feel to shared the continuing deliver those them, previously we've we to that to days but Early and

thanks the please. question much So for very next and question

Operator

Next, to we'll go from line Credit go Please A.J. Suisse. of the Rice ahead.

A.J. Rice

of we've My Congratulations a the year-end be things the everybody. and confidence those. close. is big since level? Blue a recollection by It's side you and of give while navigating Shield know this at of a point Louisiana Can quite you're been the can discussions process sense of on regulatory deal. states any approval Hi, I Cross have Thanks. tricky. us one Blue little with seen you saying the your

John, you mentioned you Is wouldn't we there numbers. say about that's assuming And it to accretive? to it this can is that due meaningful partly say But be would -- be closure. that I'm late can it financially year's it? anything

we cetera. upswing then interest could in there this discussions, things lot changing you et antitrust broader related And obviously, see or the of Are you're more the Blues last with collaboration, maybe a is, seeing is aspect settlement, there's of in the a to as generally activity? more there, Gail, out

Gail Boudreaux

was of very kind me A.J. a you, to let questions, thank set of Well, go and comprehensive through them. That try

and Blue First, acquisition the Cross we about really Blue of excited are Shield Louisiana.

been some has it's time you of As occurred. since these said, one

this greater very Board is to have much Blue of The you But Blue this, really for the and think Cross as a acquisition. strategic Shield like I Louisiana, driver a about put wanted think of accelerate about impact think think and This strategy are this And run really Medicare in the you a I they that plan, as X.X-star acquisition. things important place. is those plan. solidly

rooted their our really Louisiana with other is deeply as communities. strategy. that I of -- is we Louisiana for XX much Shield shared, Blue They're they've think in served Blue very The years. local They important for aligns thing Cross than us more

plans and had healthy now. well Medicaid And them of years is aligned. Alliance Our dual that serves we've our partnership a Blue a and mission for purpose number special with needs

So we've worked a there. culturally, there's I great alignment together think

thing And is we're because brings XXth this the Blue other excited the state.

we And in local deep in of solutions roots bring as can even we community. to lives. other our been, but new a Cross what again, on we strategy accelerating our have and capabilities, an scale portfolio our think market, and focus the making kept we've has Blue innovative -- X.X impact can strategic supports I Blue in difference and So just national XX, Shield access the also and million our greater the accelerates their that

of be terms subject believe of expect the closing, close half normal XXXX. we we that in And to to the will deal this second In as the closing we conditions. shared,

and not equity, can care We component that we as have accelerate committed and health more community in much those we've feel and again, on deeply with well. accessibility, the are investing been Louisiana a areas and really health citizen to So impact the well that helps is do as this there. as strong foundation, accelerate of Louisiana the affordability the status,

collaborations, you is of good of Medical around a and and around the medical us heard alignment and collaborations Synergy done we've affordability. feel all In with of specialty example a again, great about which coming that together an number fundamentally terms of focus Collective, improving

we this I to We is just greater that as that important. together would And have have feel really an an affordability example. point to us we across and And serve access to ability Americans work country. for that XXX million again, even on impact,

much So, the for thank question. very you

of to work that great again, it's think together support think collaboration we, are Blues. I help use feel and We for us and obviously advancement a excited Carelon an opportunity for for to us the there's to about us this. all

So much. thanks very

Next question, please.

Operator

of Please, go Next, we'll Justin ahead. Research. from Wolfe line to the go Lake

Justin Lake

Thanks. Good morning.

progress with that that that reporting XXXX. is what target X% just and you XX% XXXX? it XXXX. much for us in to you're you making XXXX, Maybe wanted check know you're out still there anymore. do expecting on specifically to had commercial if that not about business. target But could to you're towards I check Just I wanted out by did in in, in share you find margin in how

there's to give on us Medicaid expect you a Medicaid in of sure out target side I'm from more margins what be you perspective. versus long then terms to -- X% offset an your there term? X% have there margin the you where you conservatism And the share -- Can Thanks.

John Gallina

do morning. the And Thank you, Good Justin. appreciate we questions.

terms we're actually commercial, very doing very, well. In of

on that July of on repricing going XXXX. have We effort began a X

we than market assumed. had structure And commercial of what the we seen cost had higher the was, overall was

X, block reflect of July. book. really then about the be it And we that repriced accurately about the that with so, underlying here was group to The And result repricing XX% premiums ensure that. on associated would margin of this the recovery cost was of and the large of the block XX% in more XXXX, structure January

feel margins that good prior still about we that we in our the that the We made had commercial the by progress by level the up to to get estimated and XXXX. Investor commitments very we're Day were making, stand

in have payment of the we believe or MA do had of within you improvement, segment adjusters have now commercial our have improvement at will we Advantage we to membership really be asked, Medicare health as our And look total. margin You from are risk-adjusted Also, And year. have XXXX margin XX% we lows. our revenue the ongoing, recovering margin era range as Medicare recovering, X%. the to pandemic X-star will solidly services for in above plans X% the business really target risk

And with we've And then, good closely actions. been rates very state Medicaid was on about the sound feel that. rating final are Medicaid, question, good which that feel working and on actuarially partners very rates very the and our your about

were various to here states. paid our we high range of at in back the years, rebates couple the end obviously making of or in resulted MLR which collars However, above other last the either being and

with business the to the solidly be range, that Medicaid will expect rates. high X% within equivalent We the actuarial to end, but closer X% still

Thank helps that hopefully, that. all clarify So you.

Gail Boudreaux

Thank you.

Next question, please.

Operator

from Nathan Please line Sachs. the of go to Next, go we'll Goldman Rich ahead.

Nathan Rich

the Good current from with expense ahead through questions. for benefit much higher of capabilities? here go this Thanks On target Carelon, that Hi. hit you percentage can XX% how of schedule. Could the Carelon talk for your about you mentioned morning. you

The And that on will forward? from in thinking came outlook from bit revenue for for here then XXXX. made? And about guidance the given you growth specifically the Thank you've below going Carelon Services growth your long-term just are you. How target. more customers come external progress a

Gail Boudreaux

planning have provide to a earlier, be perspective. March. our Investor going Yes. are going Pete Thanks, little Day in updating I'm we at shared we And Haytaian Nathan. long-term our as to

probably and can you of overall components Carelon So think is playing feel each color go on guidance are some the won't but that updated on our like certainly good progress the that, we we how making. into we where very give about is

So Pete?

Peter Haytaian

thanks Yes. No, for the question, Nathan.

be does range this in is It XXXX prepared relates include John it remarks, to low really M&A. XXXX, the noted to not double-digit clear, the growth and As growth. just in organic

do. it. I going think our continue about being intentional it's we're We're very growth if something you And look M&A And of that's forward. at lot that. an I we'll that our recent focused history, think to there's been It's part of important a meaningfully on us. contributed very strategy to

medical Gail to said, we We at we internally. There's like space that pretty more feel amount terms significantly. in lot of we'll but really Day, encouraged talk the As about right with continue our grow white can that penetrate, a now. trajectory we're Investor of spend of

lot of a So there. opportunity

new of heard about We've external as growth, to Blue But establish some the we're about a of terms very a new the said, lot of We're point we're your leadership. partnerships, Blue focused, encouraged very opportunity. terms in what external did and we you've infrastructure growth. got seeing in Blues and Gail

do think nice health But again, can we on the value as first. growth externally and first there plans affiliated So see well. focus is we creating our

Gail Boudreaux

Thank you.

please. question, Next

Operator

Fidel the from of Next, Stephens. ahead. Please to we'll line Scott go go

Scott Fidel

morning. Good Thanks. Hi.

Just I the follow-ups had two topic. on Blues

you that if some expect on because color Healthy of generating acquisition you're revenues is The give can BCBSLA already have you first maybe some from Blue. revenue off incremental drive the us the obviously, Louisiana you to

XXXX. the Minnesota I the on maybe that, update that term think on just Shield also situation, beginning Then of Blue Medicaid Blue Cross an relationship will at side of the

that as impact you you. from or on update expect any well? Just membership situation that financial Thank

John Gallina

the you, Yes, Scott, sure. Thank for question.

Shield of and associated Blue with Louisiana. Cross So Blue

material, we're close XXXX that be As impact [Technical items. not until later we had really stated, will not to expecting in on Difficulty] data line

However, you partnership already. -- is with members them we X.X counts in eliminate double assuming significant an the should after see various it in does incremental what you referenced close have and we the million XXXX XXXX,

X.X really in now. revenue have members. an it's million top billion on And incremental what of So it's -- it's an we incremental $X.X

the about to high-level really would that's expect in we XXXX. inure that So economics

Gail Boudreaux

I'm comment going to Minnesota. Norwood on Felicia ask to

Felicia Norwood

Minnesota. very Scott, about Medicaid with We XX deep XX.X million whole health And this Yes. and on over when across operate thank the focus business we members. equity plans for over and improving Good and what relentless expertise our a morning, on country you question the outcomes. do, health bring think we in you health strategy,

The to partners, not to other to has in as but and alliances, Blue bring really expertise Medicare that Medicaid, the we been in forward only table bring recognized by look we and experience partners continuing our to well. external

about And which end administrative our I our When provide think XXX,XXX services about Shield and members Blue Blue Cross is of relationships, each in-house. back-office relationship, them Medicaid alliance different. decided very Minnesota to of services supported

make care to them with of because sure taking the a we going transition, to at We're priority. want make there's to seamless our highest our members work that that's do, and core what sure of, are we

table in So Thank and value to that alliance relationships populations. forward deep partners we for continue to and serving look really this the vulnerable value expertise the you. we to with continued growth complex who segment, bring

Gail Boudreaux

be in perspective. Yes. January Thanks, XX, And Scott, timing from Felicia. that just a will

Next question, please.

Operator

go ahead. go line Please, Next, the of to JPMorgan. from Lisa we'll Gill

Lisa Gill

level COVID Thanks, as business? you up the would potentially move that, any wanted or into morning. just you this, I of be out that John, demand follow levels specific made expectations is think XXXX. going Good line higher baseline. about should acuity on I we the pent-up of feel utilization But, not we that do agree like XXXX? you for to comment call very in much. there's away, And as any

John Gallina

has XXXX, actually has favorable, you at when and a cost some bit you of to we're in-patient expectations, bit higher cost little Thank the Lisa been pharmacy really is little that the than specific favorable, running running been a out-patient relative have discussing than And for question look not trend for assumption but the higher drivers expected. expected. we room emergency

to COVID really that But the overall demand and as new we to as much being business is don’t here see COVID I occurred. cost of a as continues cost than is be know see the we if just much structure pent-up driver. had as higher The normal. never any -- it reiterate.

our all of our probably important in structure. is MLR the think reflects reflects most higher is that pricing guidance this structure now cost and this cost I What underlying also

actually well you. we feel Thank XXXX. into very going positioned So

Gail Boudreaux

Next question, please.

Operator

of to go of Kevin we'll Bank Next, go America. Please, the Fischbeck line ahead. from

Kevin Fischbeck

my question going guess, XXXX. is I Thanks. to Great. on be really

for least comment a sense, are bit of a be story make offsetting comment to is commercial it improvements you if balanced that if at on portfolio in XXXX XXXX can But the Medicare on a little that, like So give would seems direct trajectory great. not, here and because the Medicaid. us

about kind is XXXX than Medicaid MLR think, it's the a But a in from similar pressure year, that? XXXX that would and to throughout builds whether pressure opportunities obviously, revenue the Thanks. bigger the whether XXXX of perspective, I to are and one offset in which from an both begs it headwind is question in there

John Gallina

details for Kevin. question, any months, in we'll lot our provide provide in aspirations. we to going few Thank not a you question, Investor long-term coming Day indicated Yes. as Obviously, here the up specific And you your did at we're on a more XXXX.

and it's grow within benefits way is the of to correct. XXXX Carelon. we think optimizing I expand business, while our you've year -- But capabilities characterized a health It's continue really the

redeterminations, in of well, up they is the the of resilience a where membership the go, ultimately could of of reside talk our As pace balance timing, you be base the basis, then which end somewhere. with about, lot state-by-state lines greater? great one things business, we with members certainly And I look about they and that on think associated headwind at a you there's variables and Medicaid gee, the the

age, for regardless of very, regardless offering We every health very employment with condition, feel status, of member good. product of have a and regardless

next in So reverified calendar year we Medicaid do to half members expect year. this be here about of approximately the the other and half

But membership. there retain to is there. very well some we of at end are that positioned of Thank balance the much you. So day, the

Gail Boudreaux

about business think for as as is John. thanks, in you business. XXXX, have our Optimizing an scaled. recovery, how diversified insightful it's think been And three of again, because Kevin, benefits pillars We're I an really us health we It's focused And Yes, which heard you've there's margin that we think evolving. I talk core question on. see very we've business. intensely opportunity about, our highly

remember, is is growth, through particularly growth think through our Carelon future important with with opportunities. but synergistic of services I the allows other continued lot And that We've pillars, in you've also accelerating and we that But two to us, the as this third, are a and organically investing well then Carelon, capabilities our which seen Carelon. as to plan occur health services think, synergy as capabilities, that really expanding about grow inorganically. business. about and And

well got just more and I had positioned shared. us balance John think levers ever we've than historically, we've that for overall, the those So

Next question, please.

Operator

Next, Fargo. from we'll go to the ahead. line of Wells go Stephen Baxter Please

Stephen Baxter

expectations enrollment there. Hi. hoping Good over little those to clarify if open year. on the morning. next you the Medicare It'd how could enrollment play a specifically, bit be in you this Advantage expand And out you And think dynamics saw trends great then couple? the might

you've membership expectations that I trying some growth. think here. the you a XXX,XXX year-end Thanks. QX to said of Is just figure versus previous sequential shared or to realign XX,XXX figure

Gail Boudreaux

Norwood, share Felicia to comments. that have her who leads business, Sure, I'll

Felicia Norwood

bids and So, in growth, as When about thank individual, in think Gail Medicare our in Advantage, just expect also in we but terms we for early not good that mentioned good took a we performance for group. remarks, XXXX, deliver as about thought approach very question. to her morning and you strategic of we

to between up encountering very But plan we we referenced, XXX,XXX. John competitive. As grow XX,XXX a and did end

solid period in us well the positions XXXX. the a where focus very some time. that other of On D-SNP for we business, I of had is rest hand, think in which our for the OEP we've remainder growth And of had

that a believe we about we to we we're think and have portfolio, business. our well continue strong very to As order positioned this competitiveness, in grow benefit

growth range the squarely in we solid margin X% which still but the so will And business, operate end always So most the competitive grow Medicare solid pre-tax within target Advantage, strong XXXX. it environment, X% be margins is to very a XXXX and very we in margin opportunity deliver are in at to that to a and feel in an our recovery about. opportunity business importantly, this of good day, in

Gail Boudreaux

Thank you.

please. question, Next

Operator

line of from Next, Josh go the we'll Please, Research. ahead. go Raskin Nephron to

Josh Raskin

Good on value-based you're in of you or the maybe dynamics some in to Any And of wondering providers provide I the groups. physicians specify are the either industry? XXXX, trends contracting then, care. Hi. go the push? update seeing any of trying on heard the if you into earlier. there as was could comments terms or an that you're changes I are or Thanks. views morning. the some looking in for But updated any ownership that physician employment of changes

Gail Boudreaux

question, the for Josh. thanks Well,

-- refine good a on what of I care, guess, consistent, strategy. I bit to frankly, been We quite we feel improve terms and it. really our value-based In we're shared little I before on making with we've progress mean, -- continue,

sharing and also, up What bilaterally about gone upside and in the much now of we're more We've to to include -- risk. XX%. the interest continued much more one I care data we've timely. a differences more biggest downside of gotten lot risk. more is and was risk Historically, is refine seeing sharing that think we've And value-based downside

our So in can that think, I more taken in care providers. much action we're with It's lot with -- be And that a doing a of way. work integrated embedded.

And care. also, primary what post happens, like,

doing of the business. strategy That's services? is a do in we terms what in Carelon the So specialty how manage all big his Pete of part

several say, care. think interest years more we're takes practices seeing as would that, with about I lot lot physician to I comfortable I conversation think, value-based this a get structurally, So for, and more as a

building We're getting at And so, our credibility better with reporting that. we're our engagement. and

not across think Medicare Advantage, it is doing changes. the And of we're and that I one only

including with our Some commercial, specific are for customers. relationships some different very a and of that's example, to approach, fee-based

that a trend. be So would

very been in MMM about performed We own physicians that. the of do terms of our plans, of have fund in terms and health those In I integrated Florida. very health in well we've physicians, ownership and think, consistent

with work CareMore is the more I integrated even beginning become to think, we're doing.

has So there. consistent very I think our strategy stayed

and more embedded a care data really then, more work integrate And do have significant basis. partners each risk downside drive other all updates, really environment. much in other I our train a become it's don't I we true think to in than value-based and how So any ability real-time and

cost this happen doesn't those have seeing bit think, for see overnight, I on results and work know As, feel to the been both And the committed differentiated more We partnerships. takes good, and it sides enrollment of you and a but quite long-term outcomes. we us we're in well, good. partnership, be quality to

thank you much very for the question. So

Next question, please.

Operator

Please, of line ahead. Cleveland the Rob to go from Cottrell we'll Next, go Research.

Rob Cottrell

morning. thanks for taking And questions. Good my Hi.

more how outlook? the CarelonRx for color within to square the then PBM, synergy you we on And XXXX the bit provide Thank be a can on will what relative Carelon's you. should low collective? Just long-term your double-digit high role outlook XXXX or single-digit also,

Gail Boudreaux

Haytaian to address going please. ask I'm to Pete that,

Peter Haytaian

Yes. Thanks.

script commercial. going In terms of the overall, script you're referencing Medicare the short-term, to growth, we're in if see nice and growth

of headwind And see redeterminations. terms to the that's we're really, Medicaid In then around the overall, to going lower vaccination. dynamic or that, due to reverifications, COVID

that impact So you're for the is in seeing the really of what that terms numbers short-term, gain, in but the long-term. doesn't operating difference reason

improvement integrated year. doing in value of XXX% XXXX, we're good net the growth, we off to in coming feel There we're continues a business. pharmacy saw how proposition. lot growth. a terms really about a our In in good interest membership be In overall We though, of

through seeing saw or did we and obviously the XXXX. continue year, good the penetrating business. of into terms business. XX,XXX beginning a in And our was We're through see more the lot what activity selling to that of of is the So lot that for in self-funded play a less we we're penetration

year-over-year. reiterate, again, that really, up well And I'll really this RFPs is in. about X% we perform a area saw by segment an We but

our think of to overall to a the our and medical us at of end your of is you create our our commentary, in members. affordability focus, part this referenced more big Gail's the an affordability And strategy I opportunity creates choice again, question. a synergy in point context for for and specialty

those utilizing to the on affordability. specialty Americans, medical Blues much create conjunction that million opportunity XXX are side, the Again, have across greater we in by an working with

forward to look XXXX is right in earnest That XXXX. into we So that. now work value playing with through in potentially

Gail Boudreaux

you. Thank

please. question, Next

Operator

the Next, Mayo from Whit line go to Securities. we'll ahead. SVB go Please of

Whit Mayo

you initiatives. margins, specifically the claims beginning the to trends the more and think, Hey, commercial the just guys creep just plan on optimization business you feel of any about repricing I health in comment year, how and stop in on overall maybe the are of some last challenges broadly, loss? high-cost market? topic Can just Thanks. about anniversary stop-loss comments you maybe

Gail Boudreaux

our leads going Kendrick, perspective there. Morgan Whit. give some commercial Sure, I'm business, have to you who

Morgan Kendrick

Hi, the question. Whit, you thank there, and for

-- those an Regarding margins priorly year. underperforming that business business. risk-based had business, XX of our certainly recover and in January. that journey the cohort, integrated exercise started area Both And we was we external a further, our some and our went repricing business, with business the both of last progressed to loss then that of July which year to was January that then that's with our mentioned stop back through John about It and in stop-loss concluded which began some of [ph] rather. midyear, earlier, integrated

risk we we in external. doing very fastidiously that through in very And our on we'll continue continue both to continued and penetration, business time, regarding based right-priced this as good about business well but the We've integrated so we stop-loss feel market, we strong grow opportunity as got move So to as on feel at point it. that, our internal our have XXXX.

Gail Boudreaux

you. Thank

Next question, please.

Operator

the from go Next, ahead. go we'll to Jefferies. Windley line Dave Please of

Dave Windley

Hi. Thanks for taking my question. Good morning.

MLR from this was did in SG&A call if wondering in to growth one. the growth, Medicaid there the out benefit to not XXXX You headwind a called ratio out from the year that. a the I'm outsized

in those offset as to and create ratio? of And And direction the importantly, then that what as are books more that from that pulling for headwind? SG&A Thanks. Medicaid shrinks reverses levers headwind a XXXX -- redetermination. Does you

John Gallina

Thank the Dave. you for question,

have things SG&A and digital in been you with investing various the As experience. puts a by can imagine, improve heavily the we and there's ability that facing quite of member and and to are member that the associated actually lot invest can ratios capabilities, fact takes

of The leveraging. really is that, a enjoyed cost aspect fixed lot other we've

grew year-over-year, that Our premiums XX.X% allowed to obviously at SG&A as well. the decline from which aspect ratio

efficiency, in improved in partially in our So, line growth, operating the we and growth. by reduction a leverage the as our by driven expense reinvestment top do support offset operating expect as ratio initiatives strategic of XXXX, of well

investment company while does So, lot services in carries of SG&A the expect mix grow the rest Services the higher and business significant than as in and a we guidance, probably But the cost ratio takes. drivers puts said in general. certainly, of are matter. the of And Carelon And we of Carelon you. year-over-year. to fixed two most capabilities Thank leveraging faster, a

Gail Boudreaux

Next question, please.

Operator

to ahead. we'll Barclays. Valiquette Next, from go the go Steven line of Please,

Steven Valiquette

Yes. strategy. Great. morning. segment the on your guidance, with Good membership Thanks. the Appreciate commercial the XXXX in particularly the -- repricing color

but have between fee-based gap about You this the touched I of the commercial on and may previously your you little risk-based narrowing goal guess, talked bit, profitability a customers.

light gap you expected business I'm fee-based color curious, in XXXX trends in particular, of and profit more about for books that the provide all just pricing can of in little commercial. on talked progress in a calendar you risk your just just and if on the growth

Gail Boudreaux

I'll Morgan his Great. share thoughts. have

Morgan Kendrick

our for risk gap as you rather improving towards make progress materially, business we lines revenue Steven, fee-based a had with selling our grew and steady goal Pete of and thank very the of to that and indicated, CarelonRx, specialty question. successful between we season continue business. And we

you grew One membership thing X% nearly compared carry retrospectively fee-based back, -- XXXX, which growth. looking take about forward will in think admin well, in with note, when our fee X% us as of revenue

and in an product So this we've got revenue is that expansion member. sold per alone certainly clearly indicating

products is and but our I close. by that our to our buy-ups. strong continuing only so driven would that it's trajectory. assets, services driven Carelon noted by again not products. We we good gap aligned say, Carelon growth feel in about about Again, good incentives feel specialty And, clinical this -- also

that Carelon much the this segment. but working indicated fee-based growing Pete business And fee-based This with actually the you pull-through Many question. the asset any schedules, of and is earlier, his that team moving on. one we're is about also as John isn't -- jointly had the for business. around Thank to that of

Gail Boudreaux

Yes. the Thanks for question.

the improving And in making Morgan -- and I think, he example shared, the I per member fee-based the that. profitability helps revenue we're really really think, gave, as business. just on per progress nice our both member the demonstrate

it's And that. confidence lot so overall, of we feel strong and have a we in been

health again, business optimizing it's, of our benefits we've that about. talked the thanks question. So for And part again

please. Next question,

Operator

of we'll the Next, go go Deutsche ahead. line George to from Please, Hill Bank.

George Hill

morning. Hey, got CarelonRx the the on guys good thanks business, announced for acquisition, you question taking initiatives. a And the question. state the of future kind the ask, I BioPlus you've of, synergy because

with You've on got JV DomaniRx. the SS&C

probably question So it's I guess for or beyond. a XXXX

you. to But do, the you much the vertical business integration PBM of of I how the that other given you and you can outsourced initiatives the you Thank about think guess talk relationship that with need that CVS going have on?

Peter Haytaian

being overall this we regard. ago, back to a step few think we that's and core for a PBM sort what think helpful kind about been George. keenly lot where our strategy on of and in a started of and always medical, health we we've behavioral and our And it's talked and started And pharmacy, question. integration of been years I about Yes, whole Thanks focused When been strategy different to has social. that doing.

said, journey choice, want on. that, drive greatest that's and Those the own frankly, And we've And deliberate this, also very strategic and matter. patient levers the course of superior that about to we're we that the we've been quite experience. going affordability

BioPlus that what prioritized. and you're and seeing good are really of think what synergy in I you're seeing examples we what in

now. patients. right of overall at a for XX% spend of pharmacy, And XX% look to specialty you value it's the drug critical If driver it's

And where we again, and experience. lens this superior that's greater started. through the journey, so we'll patient on of And affordability continue

So over continue see strategic take time, you to that of the matter. will really us ownership levers

Gail Boudreaux

you. Thank

Next question.

Operator

the Next, Cowen. of Please line ahead. to go Gary go we'll Taylor from

Gary Taylor

of Good things. morning. I a was wondering just question well. about Hi. a couple Actually I quick had as BioPlus

of would in-house. what bring If and And in said I future specialty annual Pete give the fulfillment think that's someone there, thought geographic BioPlus revenue reach a you earlier could us sense I was.

just I understand I So the want make sure model to business there?

Peter Haytaian

get think obviously Gary. quarter. their family. breath, it, that closed all I over yet. XXX there Yes. independent hasn't adding it they range to distribution about broad the out We the They about good into the the won't question, the specifics largest of but Thanks for in of first services. limited will are the It specialty drugs. And BioPlus We feel in pharmacy really remains cover terms a likely close of with

is covering that. XX we good feel really So their about states. And footprint all

So really a we it's platform. believe great

frankly. BioPlus two then real really experience. therapy, experience, talent over quite lot things, differentiating is other of really services to I other to service And is providing that. differentiated a the would upon the say Time that to we're by speed model. is long-standing The impressed really differentiating great factor and which build around One with they're their thing there like we'd

closes, And take be building very be the pharmacy. able our focused this. So excited to going on specialty on to to obviously when scale it we're we're all about

Gail Boudreaux

Thank you.

We have last question. one

Operator

go we'll Please Michael Ha of our ahead. from Stanley. to line for final the go And Morgan question,

Michael Ha

thank you Hey, the for question.

so, you're a XXX than still margins. commercial Was which dig means XXXX, X% deeper XXXX. I would commercial target. that gap mentioned I bps if might you right? And slightly more by XX.X% John margin Just your for wanted targeting better XX.X% have XXXX XXXX a considerable be think that know to to in to mentioned still on little there's

And XXX was seeing and I of year expecting you're might XXXX in bps just at following two years, but given if improvement. a this that of happen bps would least repricing XXX experts, need your majority improvement the

and and could bit in of just progression a about So I that you if the talk XXXX. wondering path XXXX was improvement little more

other a percent envision small path? potentially the business any higher If maybe break from help based just beyond Like us or that margin you. to efforts that down coming you thank drivers more of could or better the your contributors, fee of is XXXX? we up-selling group can what Yeah, improvement shift pricing

John Gallinan

sure then I you where increased the the that by But XXXX point reported Yeah. at remarks. is came of versus share Michael. points. look the of of quarter fourth a XXXX, and that of versus for can release basis our commercial And can was part you the XXX of the Thank third XXXX quarter margins basis, prepared by not basis, increased not reported your that from. comment I'm third basis quarter if What XXX points. margins fourth see commercial you press XXXX on quarter in XXX basis the question, on

the standing margin behind there to about, years, it continued have target terms not XXXX to we've historically, In you margins reason margin the in pro be going the together noted. that fully insured XXXX through XXXX to got Morgan rata. through will to continue that we're going -- of that more then Obviously, to in as XXXX be that with we improvement more block XXXX. optimize fee will still And far XXXX. get selling for target we're improvement you. three improvement, our is be the overall, said talked If here those there it based will Thank and strategies of

Gail Boudreaux

that strategy Thank the you, XXXX. us our year delivered positions everyone to joining your you March to XXXX great in XXXX. long-term for you our interest confident Conference, strong are we host us. Investor of closing, detail plan we look have XX, John, have which XXXX our pleased New discussing Thank greater well York and ongoing and Health, in strategy another In for in We for in we're forward you. thank at to of a execution for on week. City Elevance Thank rest and said

Operator

February recording a today XX, a.m. will this of XXXX. XX:XX gentlemen, and replay for through be conference available Ladies after

replay You conference for This our XXX-XXX-XXXX. by international can XXX-XXX-XXXX participants today. may concludes dialing system the and access time any at dial

Thank you for your participation and conferencing. for using Verizon

You now may disconnect.

Elevance Health (ELV) 25 Jan 232022 Q4 Earnings call transcript