Summary
Elevance Health, Inc. (formerly Anthem, Inc.) issued this 8-K filing on January 10, 2017, to provide preliminary financial results for the full year 2016 and an update on membership. The company anticipates robust adjusted net income, primarily driven by a favorable change in California's Medicaid expansion program's minimum Medical Loss Ratio (MLR) calculation. This filing serves as an advance communication to investors and analysts ahead of their formal earnings release. The updated outlook suggests strong performance and exceeding previous membership targets, indicating positive operational momentum at the close of 2016.
Key Highlights
- 1Preliminary Full Year 2016 Adjusted Net Income Outlook of approximately $11.00 per share, up from prior expectations.
- 2Preliminary Full Year 2016 Net Income Outlook of approximately $9.21 per share.
- 3A favorable retroactive change in the minimum MLR calculation under California's Medicaid expansion program is the primary driver for increased adjusted net income.
- 4Full Year 2016 medical enrollment is projected to be approximately 39.9 million members, exceeding earlier company expectations.
- 5The company will hold meetings with securities analysts and investors on January 10-11, 2017, to discuss these preliminary results.
- 6Detailed 2016 financial results are expected to be released on February 1, 2017.
Frequently Asked Questions
The primary driver for the increased adjusted net income outlook is a favorable retroactive change in the minimum Medical Loss Ratio (MLR) calculation under California's Medicaid expansion program.
The company expects full-year 2016 net income per diluted share to be approximately $9.21, and full-year 2016 adjusted net income per diluted share to be approximately $11.00.
The company expects its 2016 year-end medical enrollment to be approximately 39.9 million members, which is ahead of its earlier expectations.
Elevance Health (Anthem) expects to release its detailed 2016 financial results on February 1, 2017.