The company lowered its full-year earnings outlook from $37.20 in net income per diluted share to $33.
“We remain confident in the long-term earnings potential of our diverse businesses as we navigate a dynamic operating environment and unprecedented challenges in the Medicaid business,” President and CEO Gail Boudreaux said. “We expect Medicaid rates will align with the needs of our members in time, and are taking proactive actions to enhance operational efficiencies that will ensure we emerge from this period even stronger.”
Total revenues in the third quarter were $45.1 billion, a 5.3% increase year over year.
Total expenses in the third quarter were $43.7 billion, a 6.2% increase.
Net income was $1 billion in the third quarter, down 21.2% from the same period last year. The company’s operating margin was 3.1%.
Carelon, the health services arm, reported a total operating revenue of $13.8 billion in the third quarter, up 15% year over year. Operating margin was 5.8%.
The company’s benefit expense ratio was 88.5% in the third quarter, an increase of 270 basis driven primarily by the timing mismatch between Medicaid rates and the higher acuity of those members. Days in claims payable was 42.8 days as of Sept. 30.
Total medical membership at Elevance is 45.8 million as of June 30, a decrease of 3.3% year over year. There are 32.2 million commercial members, 8.9 million Medicaid members and 2 million Medicare Advantage members.
