Elevance Health is the latest insurer to cut its 2025 earnings guidance, citing elevated costs in the individual market and Medicaid.
The company reported its second-quarter earnings July 17. Elevance Health earned $2.4 billion in operating income in the second quarter, down from $2.8 million in the second quarter of 2024.
Elevance Health cut its earnings guidance to $30 per share, down from its previous estimate of $34.15 to $34.85.
Several other insurers have revised or pulled their earnings guidance altogether as medical costs continue to rise. UnitedHealth Group pulled its earnings guidance for 2025 in April. Centene did the same in July.
“While the external environment continues to evolve, we are focused on the areas within our control — managing healthcare costs, deploying targeted investments in advanced technology and value-based care delivery, and reinforcing the operational foundation that supports long-term value creation,” CEO Gail Boudreaux said.
Here are five things to know:
- Operating income in the second quarter was $49.4 billion, up 14.3% from the same time period last year.
- Elevance Health’s medical benefit ratio was 88.9%, up 2.6 percentage points from the second quarter of 2024. The company cited higher costs in Medicaid and ACA plans as drivers of the increase, the company said.
- The company had 45.6 million members at the end of the second quarter, membership declined 212,000 from the first quarter of 2025 due to lower Medicaid membership and attrition in the individual market.
- Elevance Health had 1.3 million individual members; 27.1 million commercial members; 2.3 Medicare Advantage members and 8.7 million Medicaid members.
- Carelon served 97.3 million consumers in the second quarter, down 4.9% from the same time period last year.
