Elevance Health, Inc. (formerly known as Anthem) reported strong first quarter 2023 profits with double-digit growth in profits, operating revenue, and adjusted earnings per share. Elevance reported profits of $2 billion, an increase of 11% over the prior year quarter’s profits. Elevance’s first quarter operating revenues were also sharply up, growing 10.5% over the prior year quarter to $39.6 billion. These results beat analysts’ expectations.
In addition, Elevance reported strong membership growth, adding 1.3 million members compared to the prior year quarter. At the end of the first quarter, Elevance had 48.1 million members, making it the largest health insurer in the United States. This growth was driven primarily by growth in its Medicare Advantage, Medicaid, and ACA marketplace products. Elevance is the largest Blue Cross and Blue Shield licensee, operating Blues plans in fourteen states. In addition, Elevance is in the process of acquiring Blue Cross and Blue Shield of Louisiana, which will be its fifteenth Blue state and is expected to add 1.6 million members and $4.5 billion in revenue in 2024.
Elevance also reported an expense benefit ratio 85.8%, 30 basis points lower than the prior year quarter, meaning that it paid less to providers for medical costs than in the prior year quarter.
As a result of its strong earnings report, Elevance raised its earnings forecast for 2023. In a press released, Elevance stated: “Given the strong start to the year and the momentum in each of our primary businesses we now expect GAAP net income to be greater than $29.50 per share in 2023, and adjusted net income to be greater than $32.70 per share.”
Elevance’s press release announcing its first quarter 2023 results is linked here.