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Elevance Health's Q3 Earnings: Profit Falls Short Of Expectations On Higher Medical Costs, Issues Soft Annual Outlook

On Thursday, Elevance Health Inc. (NYSE:ELV) reported third-quarter revenues of $44.7 billion, up 5.3% year-over-year, beating the consensus of $43.33 billion. 

The increase was driven by higher premium yields in the Health Benefits segment and growth in CarelonRx product revenue, partially offset by membership attrition in the Medicaid business.

The benefit expense ratio was 89.5%, an increase of 270 basis points, driven primarily by the timing mismatch between Medicaid rates and the higher acuity of members.

“We remain confident in the long-term earnings potential of our diverse businesses as we navigate a dynamic operating environment and unprecedented challenges in the Medicaid business. We expect Medicaid rates will align with the needs of our members in time, and ...