Elevance Health, Inc. Annual Report, Year Ended Dec 31, 2017

Elevance Health, Inc. (formerly Anthem, Inc.) reported strong financial performance for the year ended December 31, 2017. Total operating revenue increased by 5.8% to $89.1 billion, driven by higher premium revenue across its Government and Commercial & Specialty Business segments. Net income saw a substantial increase of 55.6% to $3.8 billion, primarily due to lower income tax expenses and improved investment activities. Diluted earnings per share (EPS) also rose significantly by 55.8% to $14.35. The company's medical membership grew slightly to 40.2 million, with notable increases in Medicare and Local Group memberships, partially offset by decreases in Individual and National Accounts. The company continued its growth strategy through strategic acquisitions, notably the acquisition of HealthSun in December 2017, which is expected to bolster its Medicare Advantage and dual-eligible populations. Elevance Health also made progress in establishing its own pharmacy benefits manager, IngenioRx, and secured a five-year agreement with CVS Health to manage these services starting in 2020, coinciding with the conclusion of its current agreement with Express Scripts. This strategic move towards vertical integration in pharmacy benefits management signals a move to control costs and enhance service offerings. Despite a challenging regulatory environment, particularly concerning the Affordable Care Act (ACA), Elevance Health demonstrated resilience and strategic focus. The company highlighted its reduced participation in the Individual ACA-compliant marketplaces for 2018, focusing only on rating regions with a higher degree of confidence in market sustainability. This demonstrates a disciplined approach to managing risks associated with market uncertainties. Overall, the filing indicates a robust operational performance, strategic expansion initiatives, and a proactive approach to navigating the evolving healthcare landscape.