01—Abstract
Summary
Summary of the 10-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Elevance Health, Inc. (ELV) reported a stable financial performance for the year ended December 31, 2024, with total operating revenue increasing by 2.9% to $175.2 billiona.
This growth was primarily driven by premium rate increases across its health plans, expansion in its CarelonRx segment, and contributions from recent acquisitions. Net income remained relatively flat year-over-year at $5.97 billionb, reflecting a slight decrease of 0.3%. Diluted Earnings Per Share (EPS) saw a modest increase of 1.8% to $25.68, attributed to a reduction in diluted shares outstanding due to share repurchases.
The company experienced a notable decline in Medicaid membership (down 15.1%c), largely due to eligibility redeterminations and market exits, which impacted benefit expenses. However, this was partially offset by growth in Employer Group fee-based, Individual, and FEP businesses. Strategic initiatives are ongoing, including the integration of acquired businesses like Paragon Healthcare and CareBridge, and the divestiture of life and disability businesses.
Management is focused on optimizing operations and managing healthcare costs through value-based care models and medical management programs. The company maintains a strong liquidity position and ended the year with $35.7 billiond in cash, cash equivalents, and investments. Key risks identified include managing healthcare costs, regulatory changes, and cybersecurity threats.
02—Key points
Key Highlights
- Total operating revenue grew 2.9% to $175.2 billion, driven by premium rate increases and acquisitions.
- Net income remained stable at $5.97 billion, with a slight decrease of 0.3% year-over-year.
- Diluted EPS increased by 1.8% to $25.68, supported by share repurchases reducing the share count.
- Medicaid membership declined by 15.1% due to eligibility redeterminations, impacting benefit expenses.
- The company completed several strategic acquisitions in 2024, including Paragon Healthcare and CareBridge, to expand its capabilities.
- Elevance Health maintains a strong liquidity position with $35.7 billion in cash, cash equivalents, and investments.
- The company expects a reduction in Medicare quality bonus payments in 2026 due to a decrease in its Medicare Advantage Star Ratings.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Elevance Health, Inc. kept $0.03.
- Revenue$177.01B100.0%
- Cost of revenue−$19.75B11.2%
- Gross profit$157.26B88.8%
- Operating costs−$149.40B84.4%
- Operating income$7.86B4.4%
- Interest, other & tax−$1.89B1.1%
- Net income$5.97B3.4%
Where FY2024 revenue went
$177.01B- Other operating costs: $129.37B, 73% of revenue
- Net income: $5.97B, 3.4% of revenue
- Cost of revenue: $19.75B, 11% of revenue
- SG&A: $20.02B, 11% of revenue
- Interest, other & tax: $1.89B, 1.1% of revenue
Kept 3.4% as net incomeNet income $5.97B · 3.4%Interest, other & tax $1.89B · 1.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 20, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $177.01B$171.34B | +3.3% |
| Cost of Revenue | $19.75B$17.29B | +14.2% |
| Gross Profit | $157.26B$154.05B | +2.1% |
| SG&A Expenses | $20.02B$20.09B | −0.3% |
| Operating Income | $7.86B$8.50B | −7.5% |
| Net Income | $5.97B$5.99B | −0.3% |
| EPS (Basic) | $25.81$25.38 | +1.7% |
| EPS (Diluted) | $25.68$25.22 | +1.8% |
| Shares Outstanding (Basic) | 231.70M235.90M | −1.8% |
| Shares Outstanding (Diluted) | 232.90M237.40M | −1.9% |
05—Questions
Frequently Asked Questions
What was Elevance Health's revenue growth in 2024 and what drove it?
Elevance Health's total operating revenue increased by 2.9% to $175.2 billion for the year ended December 31, 2024. This growth was primarily driven by premium rate increases in recognition of medical cost trends across all lines of business, growth in CarelonRx product revenue, and contributions from recent acquisitions.
How did Medicaid membership changes impact the company's financial results?
The company experienced a significant decline in Medicaid membership, down 15.1% for the year ended December 31, 2024. This attrition was primarily attributed to Medicaid eligibility redeterminations and certain market exits. While this decline impacted benefit expenses, management anticipates growth in commercial plans as former Medicaid members seek alternative coverage.
What is the company's outlook on Medicare Advantage Star Ratings and their potential financial impact?
Elevance Health's 2025 Medicare Advantage Star Ratings, which will determine 2026 bonus payments, show that 38% of its members are in plans rated 4.0 Stars or higher, a decrease from 53% based on the 2024 ratings. The company expects this to result in a reduction of approximately $183 million in operating revenue in 2026. Management plans to mitigate this impact through strategies like contract diversification and operating expense efficiencies.
What were the key acquisitions and divestitures completed in 2024?
In 2024, Elevance Health completed several strategic acquisitions: Paragon Healthcare, Inc. (to enhance CarelonRx's infusion services), Centers Plan for Healthy Living LLC and Centers for Specialty Care Group IPA, LLC (to expand its managed long-term care capabilities), and RSV QOZB LTSS, Inc. (to bolster its Carelon Services' home and community-based services). The company also divested its life and disability businesses on April 1, 2024, which resulted in a gain on sale.
06—Continue