Elevance Health posts $1.3B profit in Q3

Elevance Health posted $1.3 billion in net income during the third quarter, a nearly 20% decrease compared to the same period last year, according to the company's earnings report published Oct. 18.

"In the third quarter, we completed a strategic review of our operations, assets, and investments to enhance operating efficiency, refine the focus of our investments in innovation and optimize our physical footprint," the company wrote. "This resulted in a net charge of $697 million, comprised of the write-off of certain information technology assets and contract exit costs, a reduction in staff including the relocation of certain job functions, and the impairment of assets associated with the closure or partial closure of data centers and offices."

Total revenues in the third quarter were $42.5 billion, a 7.2% increase year over year.

Total expenses in the third quarter were $41.2 billion, a 8.9% increase since 2022.

Net income was $1.3 billion in the third quarter, down 19.6% from the same period last year. 

Adjusted net income is expected to be greater than $33 per share in 2023.

Carelon, the health services arm, reported a total operating revenue of $11.9 billion in the third quarter, up 14% year over year. Operating gain was $650 million, up 1.4%.

The company's benefit expense ratio was 86.8% in the third quarter, an increase of 40 basis points year-over-year due to premium rate adjustments. Days in claims payable was 48.6 days as of Sept. 30.

Total medical membership at Elevance is 47.3 million as of Sept. 30, a decrease of 1.4% since the second quarter, primarily due to 664,000 less Medicaid members amid redeterminations. There are 11 million Medicaid members and 2.1 million Medicare Advantage members.

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