Summary
Elevance Health, Inc. (formerly Anthem, Inc.) reported solid performance for the year ended December 31, 2018, with total revenues reaching $92.1 billion. The company demonstrated growth in its Government Business segment, largely driven by acquisitions and favorable Medicare and Medicaid membership trends. However, the Commercial & Specialty Business segment experienced a revenue decrease, primarily due to the company's strategic reduction in participation within the Individual ACA-compliant marketplaces. Financially, net income was $3.75 billion, a slight decrease from the previous year, impacted by higher income tax expenses and net realized losses on investments. Despite this, the company maintained a strong balance sheet and liquidity position. Key operational highlights include the strategic acquisition of America's 1st Choice to bolster its Medicare Advantage offerings and the ongoing development of IngenioRx as a new pharmacy benefits manager. The company also continues to navigate the evolving regulatory landscape, particularly concerning the Affordable Care Act (ACA).
Financial Highlights
52 data points| Revenue | $92.11B |
| Cost of Revenue | $0 |
| Gross Profit | $92.11B |
| SG&A Expenses | $14.02B |
| Operating Income | $5.43B |
| Interest Expense | $753.00M |
| Net Income | $3.75B |
| EPS (Basic) | $14.53 |
| EPS (Diluted) | $14.19 |
| Shares Outstanding (Basic) | 258.10M |
| Shares Outstanding (Diluted) | 264.20M |
Key Highlights
- 1Total revenues increased by 2.3% to $92.1 billion in 2018, primarily driven by growth in the Government Business segment.
- 2Net income decreased by 2.4% to $3.75 billion in 2018, attributed to higher income tax expenses and net realized investment losses.
- 3Total medical membership remained stable at approximately 40 million, with a shift from the Individual market to Medicare and Medicaid due to strategic market adjustments.
- 4The company completed the acquisition of America's 1st Choice, strengthening its Medicare Advantage business.
- 5Elevance Health is establishing IngenioRx as its new Pharmacy Benefits Manager (PBM) and has entered into an agreement with CVS Health, while also terminating its PBM agreement with Express Scripts.
- 6The company faces ongoing regulatory scrutiny and changes related to the Affordable Care Act (ACA), which continues to influence market dynamics and business strategy.
- 7Shareholders received $3.00 per share in dividends in 2018, and the company repurchased approximately $1.7 billion of its common stock.