01—Abstract
Summary
Summary of the 8-K filed March 10, 2026. Cited figures are marked; the original filing is the authoritative source.
Elevance Health, Inc. (ELV) provided an update via an 8-K filing on March 10, 2026, reaffirming its full-year 2026 adjusted earnings per diluted share guidance of at least $25.50a.
The company also reaffirmed its 2026 benefit expense ratio guidance of 90.2%b +/- 50 basis points. Importantly, both of these guidance figures have been set with the assumption that anticipated sanctions from the Centers for Medicare & Medicaid Services (CMS) will be imposed. These sanctions, which involve suspending enrollment of Medicare beneficiaries and certain communication activities for its Medicare Advantage-Prescription Drug plans effective March 31, 2026, are a significant point of focus.
While the company is working to address the issues identified by CMS, the impact of these sanctions, if not satisfactorily resolved, is already factored into the company's financial outlook. Elevance Health is currently unable to provide a GAAP reconciliation for its adjusted earnings guidance due to the uncertainty in estimating potential financial impacts from resolving the CMS matter.
02—Key points
Key Highlights
- Elevance Health reaffirms 2026 adjusted earnings per diluted share guidance at a minimum of $25.50.
- Full-year 2026 benefit expense ratio guidance is reaffirmed at 90.2% +/- 50 basis points.
- Financial guidance incorporates the potential impact of intermediate sanctions from CMS.
- CMS sanctions involve suspension of Medicare Advantage enrollment and communication activities, effective March 31, 2026.
- The company is actively addressing issues identified by CMS to avoid or mitigate sanctions.
- Reconciliation to GAAP earnings per share is not feasible due to unknown financial impacts of resolving the CMS matter.
- The filing contains forward-looking statements subject to various risks and uncertainties outlined in SEC filings.
03—Questions
Frequently Asked Questions
What are the main financial guidance points reaffirmed by Elevance Health?
Elevance Health reaffirmed its full-year 2026 adjusted earnings per diluted share guidance to be at least $25.50 and its 2026 benefit expense ratio guidance to be 90.2% plus or minus 50 basis points.
What are the potential sanctions from CMS, and when are they effective?
The Centers for Medicare & Medicaid Services (CMS) has notified Elevance Health of its intent to impose intermediate sanctions, including suspending enrollment of Medicare beneficiaries and certain communication activities for its Medicare Advantage-Prescription Drug plans. These sanctions would be effective as of March 31, 2026, unless the identified issues are satisfactorily addressed.
Has the company factored the CMS sanctions into its financial guidance?
Yes, the company explicitly stated that its reaffirmed adjusted shareholders' earnings and benefit expense ratio guidance for 2026 includes the impact of the sanctions, if they are imposed. This indicates management's expectation that the sanctions may proceed or that mitigation costs are accounted for.
Why can't Elevance Health provide a GAAP reconciliation for its earnings guidance?
The company is unable to provide a reconciliation of its adjusted earnings per diluted share guidance to the most directly comparable GAAP measure (shareholders' earnings per diluted share) without unreasonable effort. This is because they cannot reasonably estimate the financial impact of potential payments or resolutions related to the CMS matter on their GAAP earnings.
04—Continue