Elevance Health reported third-quarter 2024 operating revenue of $44.7 billion, an increase of $2.2 billion compared to the prior year quarter. However, the company's shareholders' earnings per diluted share decreased by 20.0% to $4.36 from $5.45 in Q3 2023.
The company revised its 2024 GAAP net income per diluted share outlook to approximately $26.50 and adjusted net income per diluted share to approximately $33.00, down from previous guidance of $37.20. This reduction reflects persistently higher medical cost trends, particularly in its Medicaid business, which management described as facing 'unprecedented challenges.'
The benefit expense ratio rose to 89.5%, an increase of 270 basis points, primarily due to a timing mismatch between Medicaid rates and the higher acuity of its members. Medical membership decreased by 1.5 million, or 3%, to 45.8 million, driven by Medicaid attrition, further impacting the Health Benefits segment.
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