Summary
Elevance Health, Inc. (ELV) filed an 8-K on March 4, 2024, primarily to reaffirm its full-year 2024 financial guidance and to announce positive developments regarding its Medicare Advantage Star Ratings. The company reiterated its net income guidance to be greater than $34.29 per diluted share, and adjusted net income to be greater than $37.10 per diluted share, after accounting for approximately $2.81 per diluted share in unfavorable items. Furthermore, Elevance Health received notification from the Centers for Medicare & Medicaid Services (CMS) that four of its Medicare Advantage contracts received an updated, higher Star Rating. This positive revision means that the company now expects approximately 49% of its Medicare Advantage members to be enrolled in plans rated at least 4-Star for the 2024 Star Ratings (which impacts payment year 2025 revenue). The company estimates this reconsideration will add approximately $190 million to its payment year 2025 revenue, a notable benefit for future financial performance.
Key Highlights
- 1Reaffirms 2024 full-year net income guidance: greater than $34.29 per diluted share.
- 2Reaffirms 2024 full-year adjusted net income guidance: greater than $37.10 per diluted share.
- 3Four Medicare Advantage contracts received higher CMS Star Ratings after reconsideration.
- 4Expects approximately 49% of Medicare Advantage members to be in plans rated 4-Star or higher for 2024 (impacting 2025 revenue).
- 5Estimates a positive financial benefit of approximately $190 million on payment year 2025 revenue due to the Star Rating update.