Summary
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 $25.50. The company also reaffirmed its 2026 benefit expense ratio guidance of 90.2% +/- 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.
Key Highlights
- 1Elevance Health reaffirms 2026 adjusted earnings per diluted share guidance at a minimum of $25.50.
- 2Full-year 2026 benefit expense ratio guidance is reaffirmed at 90.2% +/- 50 basis points.
- 3Financial guidance incorporates the potential impact of intermediate sanctions from CMS.
- 4CMS sanctions involve suspension of Medicare Advantage enrollment and communication activities, effective March 31, 2026.
- 5The company is actively addressing issues identified by CMS to avoid or mitigate sanctions.
- 6Reconciliation to GAAP earnings per share is not feasible due to unknown financial impacts of resolving the CMS matter.
- 7The filing contains forward-looking statements subject to various risks and uncertainties outlined in SEC filings.