Elevance Health, Inc. (formerly known as Anthem) reported strong full year profits of $8.5 billion for 2022, an increase of 12.9% over the prior year. Elevance’s operating revenues were also sharply up, growing 13.7% over the prior year to $156 billion. As a result, Elevance’s quarterly dividend increased 16% to $148 a share. These results beat analysts’ expectations.
In addition, Elevance reported strong membership growth, which increased by 2.2 million members year-over-year, to 47.5 million members.
The performance of Elevance’s Government Business sector, which includes its Medicare and Medicaid products, was particularly strong, with operating revenues up 16.8% year over year and an increase of 1,000,000 members.
In a statement announcing its earnings, Elevance President and CEO Gail K. Boudreaux stated: Last year marked our fifth consecutive year in which we met or exceeded our long-term adjusted earnings per share growth target and we are well-positioned to do it again in 2023.” With respect to the outlook for its Government Business sector, Ms. Boudreaux stated on a call with investors: “We are enjoying improved reimbursement rates, risk adjustment revenue and star quality bonus payment in our Medicare Advantage business in 2023.” Reimbursement rates that health insurers consider “strong” typically mean reduced reimbursement rates for providers. The attorneys at Whatley Kallas, LLP have seen that Medicare Advantage plans have implemented strategies to arbitrarily reduce payments to providers.
Elevance claims to be the nation’s largest health insurer, providing health benefits to one in eight Americans through a number of subsidiary and affiliated companies. 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’s press release announcing its fourth quarter and full year 2022 results is linked here.