Summary
Elevance Health, Inc. (formerly Anthem, Inc.) reported strong performance for the fiscal year ended December 31, 2019. The company experienced significant growth in operating revenue, driven by higher premiums and increased administrative fees, primarily from its Government and Commercial & Specialty business segments. Net income also saw a substantial increase, reflecting improved operating results and the benefits from the launch of its pharmacy benefits manager, IngenioRx. The company highlighted membership growth, particularly in its Medicaid and Medicare businesses, and a strategic focus on expanding its integrated health services and diversifying its revenue streams. Financially, Elevance Health maintained a robust balance sheet with substantial cash and investments. The company demonstrated effective management of its capital through share repurchases and dividend payments. Key strategic initiatives for the year included the ongoing development of IngenioRx and the pending acquisition of Beacon Health Options, Inc., signaling a commitment to enhancing its health services capabilities and providing more comprehensive, personalized care solutions for its members. The company is well-positioned to navigate the evolving healthcare landscape, balancing growth with efficient capital allocation.
Financial Highlights
52 data points| Revenue | $104.21B |
| Cost of Revenue | $1.99B |
| Gross Profit | $102.22B |
| SG&A Expenses | $13.36B |
| Operating Income | $6.00B |
| Interest Expense | $746.00M |
| Net Income | $4.81B |
| EPS (Basic) | $18.81 |
| EPS (Diluted) | $18.47 |
| Shares Outstanding (Basic) | 255.50M |
| Shares Outstanding (Diluted) | 260.30M |
Key Highlights
- 1Total operating revenue increased by 12.9% to $103.141 billion in 2019, driven by strong membership growth, particularly in the Medicaid and Medicare segments, and favorable premium rate adjustments.
- 2Net income rose by 28.2% to $4.807 billion in 2019, reflecting improved operating results across key business segments and the positive impact of launching IngenioRx.
- 3Total medical membership grew by 2.7% to 41 million members, primarily fueled by expansion in fully-insured businesses, including Medicaid and Medicare.
- 4The company launched IngenioRx, its new pharmacy benefits manager, in Q2 2019, with the goal of offering more cost-effective pharmacy solutions and integrating pharmacy benefits within its medical and specialty platforms.
- 5Elevance Health announced the agreement to acquire Beacon Health Options, Inc., a major behavioral health organization, aligning with its strategy to diversify into health services and deliver integrated care models.
- 6The company continued its capital return strategy, repurchasing shares worth $1.701 billion and paying $0.80 per share in quarterly dividends during 2019.
- 7Risk-based capital levels for regulated subsidiaries exceeded all applicable mandatory requirements as of December 31, 2019, indicating strong financial stability and regulatory compliance.