10-KPeriod: FY2021

Elevance Health, Inc. Annual Report, Year Ended Dec 31, 2021

Filed February 16, 2022For Securities:ELV

Summary

Elevance Health, Inc. (formerly Anthem, Inc.) reported strong financial performance for the year ended December 31, 2021, characterized by significant revenue growth and increased net income. Total operating revenue rose by 13.4% to $136.9 billion, driven by membership growth, particularly in the Government Business segment (Medicaid and Medicare), and contributions from its IngenioRx PBM business. Net income saw a substantial increase of 33.3% to $6.1 billion, resulting in diluted earnings per share (EPS) of $24.73. This growth was supported by strong operating gains across all business units, the absence of certain litigation accrual charges from the prior year, and increased investment income. The company expanded its market participation in the ACA Public Exchange, reflecting confidence in market sustainability. Despite ongoing challenges related to healthcare cost trends and regulatory complexities, Elevance Health demonstrated robust operational execution and strategic growth initiatives, including key acquisitions, positioning it well for future performance.

Financial Highlights

53 data points
Beta

Revenue

$138.64B

92.1% Gross Margin

Net Income

$6.15B

4.4% Net Margin

EPS (Diluted)

$24.95

Total Assets

$97.46B

Cash & Equivalents

$4.88B

Free Cash Flow

$7.28B

Financial Statements
Beta
Revenue$138.64B
Cost of Revenue$10.89B
Gross Profit$127.74B
SG&A Expenses$15.92B
Operating Income$7.56B
Interest Expense$798.00M
Net Income$6.15B
EPS (Basic)$25.26
EPS (Diluted)$24.95
Shares Outstanding (Basic)243.80M
Shares Outstanding (Diluted)246.80M

Key Highlights

  • 1Total operating revenue increased by 13.4% to $136.9 billion for the year ended December 31, 2021.
  • 2Net income grew by 33.3% to $6.1 billion, with diluted EPS reaching $24.73.
  • 3Total medical membership increased by 5.7% to 45.4 million, primarily driven by growth in Medicaid and Medicare.
  • 4The company completed strategic acquisitions, including MMM Holdings, LLC and myNEXUS, Inc., to expand its service offerings and market reach.
  • 5Elevance Health expanded its participation in the ACA Public Exchange market, increasing its presence in 122 rating regions for 2022.
  • 6Operating cash flow was $8.4 billion, though lower than the prior year's $10.7 billion due to working capital changes.
  • 7The company's debt-to-capital ratio remained manageable at 38.9% as of December 31, 2021.

Frequently Asked Questions

In 2021, Elevance Health reported total operating revenue of $136.9 billion, a 13.4% increase from 2020. Net income rose by 33.3% to $6.1 billion, resulting in diluted earnings per share of $24.73. This strong performance was driven by membership growth, particularly in government programs, and improved operating gains across its segments.

Total medical membership increased by 5.7% to approximately 45.4 million members as of December 31, 2021. This growth was largely attributed to increased Medicaid membership due to the suspension of eligibility recertification during the COVID-19 pandemic, growth in Medicare Advantage, and expansions in other segments.

Key strategic initiatives included completing the acquisitions of MMM Holdings, LLC and myNEXUS, Inc. The company also expanded its participation in the ACA Public Exchange market for 2022, offering products in more rating regions. These actions align with its strategy to grow its government business, enhance its health services capabilities, and provide integrated care solutions.

The COVID-19 pandemic continued to impact Elevance Health in 2021, leading to increased medical costs for testing, treatment, and hospitalizations, particularly due to variants. However, it also contributed to Medicaid membership growth due to suspended recertifications. The company continues to monitor the pandemic's evolving effects on utilization, costs, and regulatory changes.