Elevance Health, Inc. (NYSE:ELV) shares fell Tuesday despite beating estimates, as Medicare cost pressures, Obamacare plan dynamics, and Medicaid attrition weighed on sentiment.

The company reported third-quarter adjusted earnings per share of $6.03, beating the analyst consensus estimate of $4.93.

Quarterly sales of $50.087 billion, an increase of 12% year-over-year, beat the Street view of $49.369 billion.

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The revenue increase was driven by higher premium yields in our Health Benefits segment, recently closed acquisitions, and growth in Medicare Advantage membership.

Medicaid Membership Losses

However, Elevance Health said revenue growth was partially offset by ongoing Medicaid membership losses due to eligibility reverifications.

Medical membership totaled approximately 45.4 million as of September 30, driven by lower year-over-year BlueCard and Medicaid membership.

“In a dynamic healthcare environment, we’re focused on advancing affordability and elevating the member experience through our ...