Elevance Health Reports Second Quarter 2022 Results, Raises Full Year Outlook

  • Second quarter GAAP net income was $6.79 per share, including net negative adjustment items of $1.25 per share. Adjusted net income was $8.04* per share.
  • Operating revenue grew 15.6% over the prior year quarter to $38.5 billion.
  • Operating gain grew 13.7% over the prior year quarter to $2.4 billion.
  • Medical enrollment increased 2.7 million members year-over-year and 276 thousand members during the quarter to 47.1 million members.
  • Third quarter 2022 dividend of $1.28 per share declared to shareholders.

INDIANAPOLIS–(BUSINESS WIRE)–$ELV #earnings–Elevance Health, Inc. (NYSE: ELV) reported second quarter 2022 results reflecting strong financial performance, including double-digit growth in revenue, operating earnings, and adjusted earnings per share.

«The disciplined execution of our strategy, and the balance and resilience of our diversified portfolio of businesses has enabled us to deliver another quarter of strong organic growth, and we have raised our outlook for 2022 earnings per share as a result,» said Gail K. Boudreaux, President and CEO. «Our recent name change to Elevance Health and the broader rebranding strategy underscores our transformation to a lifetime, trusted health partner and our diversified set of businesses that lend resilience in any business environment. We are uniquely well-positioned for growth in the future as we remain focused on meeting the needs of our clients and customers.»

The Company now expects GAAP net income to be greater than $25.28 per share, including approximately $3.42 per share of net unfavorable items. The Company now expects full-year adjusted net income to be greater than $28.70 per share, based on stronger than expected results year-to-date.

*Refer to GAAP reconciliation tables.

CONSOLIDATED HIGHLIGHTS

Earnings Per Share: GAAP net income was $6.79 per share in the second quarter, including net negative adjustment items of $1.25 per share. Adjusted net income was $8.04* per share, up 14.4% from $7.03 in the same period a year ago.

*Please refer to the GAAP reconciliation tables.

Membership: Medical enrollment totaled approximately 47.1 million members as of June 30, 2022, an increase of 2.7 million, or 6.1 percent from the prior year quarter. Government Business enrollment increased by 1.6 million lives compared to the prior year quarter, primarily driven by organic growth in the Medicaid business, aided by the suspension of eligibility recertification efforts in our markets, the launch of Healthy Blue in North Carolina, the acquisitions of Paramount Advantage and Integra Managed Care and organic growth in Medicare Advantage. Commercial & Specialty Business enrollment increased by 1.2 million year over year primarily driven by strong sales in both fee-based and risk-based businesses.

During the second quarter of 2022, medical enrollment increased by 276 thousand lives driven by organic growth in Medicaid due to suspension of eligibility recertification, higher BlueCard activity and the acquisition of Integra Managed Care, which added 43 thousand members.

Operating Revenue: Operating revenue was $38.5 billion in the second quarter of 2022, an increase of $5.2 billion, or 15.6 percent, from the prior year quarter. The increase was driven by higher premium revenue due to membership growth in Medicaid, the acquisitions of MMM and Paramount Advantage, as well as premium rate increases to cover overall cost trends and growth in Medicare Advantage and Commercial risk-based membership. The increase in operating revenue was further attributable to the growth in pharmacy product revenue within IngenioRx, the acquisition of Integra Managed Care and the launch of Healthy Blue in North Carolina.

Benefit Expense Ratio: The benefit expense ratio was 87.0 percent in the second quarter of 2022, an increase of 20 basis points over the prior year quarter. The increase was primarily driven by a shift in mix of business driven by faster growth in Government programs, which have a higher benefit expense ratio, as compared to growth in the Commercial & Specialty risk business, which represented 27% of premium revenue in the second quarter, down from 29% in the prior year quarter.

Medical claims reserves established at December 31, 2021 developed in line with the Company’s expectations as of the second quarter of 2022.

Days in Claims Payable: Days in Claims Payable was 47.8 days as of June 30, 2022, an increase of 0.9 days from March 31, 2022 and a decrease of 0.3 days compared to June 30, 2021. The timing of certain provider pass-through payments and corresponding reserves set in the current year had the effect of increasing Days in Claims Payable by 1.8 days, which we expect will reverse in the third quarter, while the timing of the acquisitions of MMM and myNEXUS increased Days in Claims Payable by 1.6 days in the second quarter of 2021.

SG&A Expense Ratio: The SG&A expense ratio was 11.1 percent in the second quarter of 2022, a decrease of 40 basis points from 11.5 percent in the second quarter of 2021. The decrease was primarily driven by operating expense leverage associated with growth in operating revenue, partially offset by increased spend to support growth.

Operating Cash Flow: Operating cash flow was approximately $2.5 billion, or 1.5 times net income in the second quarter of 2022, an increase of $769 million as compared to the prior year quarter. The year-on-year increase was driven by the impact of working capital changes, including the timing of certain provider pass-through payments.

Share Repurchase Program: During the second quarter of 2022, the Company repurchased 1.3 million shares of its common stock for $624 million, at a weighted average price of $489.07. Year-to-date, as of the end of the second quarter, the Company repurchased 2.5 million shares of its common stock for $1.2 billion, at a weighted average price of $471.72. As of June 30, 2022, the Company had approximately $3.0 billion of Board-approved share repurchase authorization remaining.

Cash Dividend: During the second quarter of 2022, the Company paid a quarterly dividend of $1.28 per share, representing a distribution of cash totaling $309 million.

On July 19, 2022, the Audit Committee of the Company’s Board of Directors declared a third quarter 2022 dividend to shareholders of $1.28 per share. The third quarter dividend is payable on September 23, 2022, to shareholders of record at the close of business on September 9, 2022.

Investment Portfolio & Capital Position: During the second quarter of 2022, the Company recorded net losses of $231 million. During the second quarter of 2021, the Company recorded net gains of $172 million. These amounts are excluded from adjusted earnings per share.

As of June 30, 2022, the Company’s net unrealized loss position in the investment portfolio was $2.0 billion, consisting primarily of fixed maturity securities. As of June 30, 2022 cash and investments at the parent company totaled approximately $948 million.

REPORTABLE SEGMENTS

Elevance Health has four reportable segments: Commercial & Specialty Business (comprised of Individual, Group risk-based, Group fee-based, and BlueCard businesses); Government Business (comprised of the Medicaid, Medicare, and Federal Health Products & Services businesses); IngenioRx; and Other (comprised of the Carelon companies, formerly known as our Diversified Business Group, and corporate expenses not allocated to our other reportable segments).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elevance Health, Inc.

 

 

Reportable Segment Highlights

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Three Months Ended June 30

 

Six Months Ended June 30

 

 

 

2022

 

2021

 

Change

 

2022

 

2021

 

Change

 

 

Operating Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Specialty Business

$

10,561

 

 

$

9,550

 

 

10.6

%

 

$

20,830

 

 

$

19,041

 

 

9.4

%

 

 

Government Business

 

23,835

 

 

 

20,066

 

 

18.8

%

 

 

47,593

 

 

 

39,349

 

 

21.0

%

 

 

IngenioRx

 

7,071

 

 

 

6,219

 

 

13.7

%

 

 

13,754

 

 

 

12,081

 

 

13.8

%

 

 

Other

 

3,298

 

 

 

2,517

 

 

31.0

%

 

 

6,519

 

 

 

4,887

 

 

33.4

%

 

 

Eliminations

 

(6,283

)

 

 

(5,073

)

 

23.9

%

 

 

(12,328

)

 

 

(9,981

)

 

23.5

%

 

 

Total Operating Revenue1

$

38,482

 

 

$

33,279

 

 

15.6

%

 

$

76,368

 

 

$

65,377

 

 

16.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Gain

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Specialty Business

$

806

 

 

$

791

 

 

1.9

%

 

$

1,888

 

 

$

2,059

 

 

(8.3

)%

 

 

Government Business

 

996

 

 

 

868

 

 

14.7

%

 

 

1,785

 

 

 

1,346

 

 

32.6

%

 

 

IngenioRx

 

479

 

 

 

405

 

 

18.3

%

 

 

877

 

 

 

812

 

 

8.0

%

 

 

Other

 

86

 

 

 

17

 

 

405.9

%

 

 

264

 

 

 

25

 

 

956.0

%

 

 

Total Operating Gain1

$

2,367

 

 

$

2,081

 

 

13.7

%

 

$

4,814

 

 

$

4,242

 

 

13.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Specialty Business

 

7.6

%

 

 

8.3

%

 

(70) bp

 

 

9.1

%

 

 

10.8

%

 

(170) bp

 

 

Government Business

 

4.2

%

 

 

4.3

%

 

(10) bp

 

 

3.8

%

 

 

3.4

%

 

40 bp

 

 

IngenioRx

 

6.8

%

 

 

6.5

%

 

30 bp

 

 

6.4

%

 

 

6.7

%

 

(30) bp

 

 

Total Operating Margin1

 

6.2

%

 

 

6.3

%

 

(10) bp

 

 

6.3

%

 

 

6.5

%

 

(20) bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

«NM» = calculation not meaningful.

Commercial & Specialty Business: Operating gain in the Commercial & Specialty Business segment totaled $806 million in the second quarter of 2022, an increase of $15 million from $791 million in the second quarter of 2021. The increase was primarily driven by the positive contribution from growth in risk- and fee-based membership, partially offset by the net unfavorable effect of COVID.

Government Business: Operating gain in the Government Business segment was $996 million in the second quarter of 2022, an increase of $128 million from $868 million in the second quarter of 2021. The increase was primarily attributable to premium rates in Medicare that better reflect the acuity of our members and membership growth in Medicaid.

IngenioRx: Operating gain was $479 million in the second quarter of 2022, an increase of $74 million from $405 million in the second quarter of 2021. The increase was driven by an in-year out of period favorable adjustment and the impact of higher prescription volume associated with growth in integrated medical and pharmacy members.

Other: The Company reported an operating gain of $86 million in the Other segment for the second quarter of 2022, an increase of $69 million from $17 million in the prior year quarter. The increase was driven by improved performance in Carelon’s affiliated and unaffiliated earnings.

Basis of Presentation

  1. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and selling, general and administrative expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
  2. Operating margin is defined as operating gain divided by operating revenue.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s second quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

888-947-9963 (Domestic)

866-430-8797 (Domestic Replay)

312-470-0178 (International)

203-369-0943 (International Replay)

The access code for today’s conference call is 3972058. The replay will be available from 11:30 a.m. EDT today, until the end of the day on August 20, 2022. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.

About Elevance Health, Inc.

Elevance Health is a lifetime, trusted health partner fueled by its purpose to improve the health of humanity. The company supports consumers, families, and communities across the entire care journey – connecting them to the care, support, and resources they need to lead healthier lives. Elevance Health’s companies serve more than 118 million people through a diverse portfolio of industry-leading medical, digital, pharmacy, behavioral, clinical, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on Twitter and Elevance Health on LinkedIn.

Elevance Health, Inc.

Membership Summary

(Unaudited and in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

Medical Membership

June 30, 2022

 

June 30, 2021

 

March 31, 2022

 

June 30,

2021

 

March 31,

2022

Commercial & Specialty Business

 

 

 

 

 

 

 

 

 

Individual

803

 

738

 

818

 

8.8

%

 

(1.8

)%

Group Risk-Based

4,020

 

3,851

 

4,028

 

4.4

%

 

(0.2

)%

Commercial Risk-Based

4,823

 

4,589

 

4,846

 

5.1

%

 

(0.5

)%

BlueCard®

6,445

 

6,235

 

6,370

 

3.4

%

 

1.2

%

Group Fee-Based

20,086

 

19,372

 

20,148

 

3.7

%

 

(0.3

)%

Commercial Fee-Based

26,531

 

25,607

 

26,518

 

3.6

%

 

%

Total Commercial & Specialty Business

31,354

 

30,196

 

31,364

 

3.8

%

 

%

Government Business

 

 

 

 

 

 

 

 

 

Medicare Advantage

1,946

 

1,824

 

1,921

 

6.7

%

 

1.3

%

Medicare Supplement

942

 

936

 

939

 

0.6

%

 

0.3

%

Total Medicare

2,888

 

2,760

 

2,860

 

4.6

%

 

1.0

%

Medicaid

11,181

 

9,754

 

10,919

 

14.6

%

 

2.4

%

Federal Employees Health Benefits

1,628

 

1,631

 

1,632

 

(0.2

)%

 

(0.2

)%

Total Government Business

15,697

 

14,145

 

15,411

 

11.0

%

 

1.9

%

Total Medical Membership

47,051

 

44,341

 

46,775

 

6.1

%

 

0.6

%

Other Membership

 

 

 

 

 

 

 

 

 

Life and Disability Members

4,779

 

4,732

 

4,679

 

1.0

%

 

2.1

%

Dental Members

6,620

 

6,606

 

6,649

 

0.2

%

 

(0.4

)%

Dental Administration Members

1,589

 

1,497

 

1,588

 

6.1

%

 

0.1

%

Vision Members

9,385

 

7,819

 

9,211

 

20.0

%

 

1.9

%

Medicare Part D Standalone Members

276

 

433

 

279

 

(36.3

)%

 

(1.1

)%

Elevance Health, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

(In millions, except per share data)

 

Three Months Ended

June 30

 

 

 

 

2022

 

2021

 

Change

Revenues

 

 

 

 

 

 

Premiums

 

$

33,076

 

 

$

28,533

 

 

15.9

%

Product revenue

 

 

3,568

 

 

 

3,042

 

 

17.3

%

Administrative fees and other revenue

 

 

1,838

 

 

 

1,704

 

 

7.9

%

Total operating revenue

 

 

38,482

 

 

 

33,279

 

 

15.6

%

Net investment income

 

 

381

 

 

 

400

 

 

(4.8

)%

Net (losses) gains on financial instruments

 

 

(231

)

 

 

172

 

 

(234.3

)%

 

 

 

 

 

 

 

Total revenues

 

 

38,632

 

 

 

33,851

 

 

14.1

%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Benefit expense

 

 

28,777

 

 

 

24,763

 

 

16.2

%

Cost of products sold

 

 

3,069

 

 

 

2,614

 

 

17.4

%

Selling, general and administrative expense

 

 

4,269

 

 

 

3,821

 

 

11.7

%

Interest expense

 

 

208

 

 

 

205

 

 

1.5

%

Amortization of other intangible assets

 

 

166

 

 

 

90

 

 

84.4

%

Loss on extinguishment of debt

 

 

 

 

 

5

 

 

(100.0

)%

 

 

 

 

 

 

 

Total expenses

 

 

36,489

 

 

 

31,498

 

 

15.8

%

 

 

 

 

 

 

 

Income before income tax expense

 

 

2,143

 

 

 

2,353

 

 

(8.9

)%

 

 

 

 

 

 

 

Income tax expense

 

 

493

 

 

 

552

 

 

(10.7

)%

 

 

 

 

 

 

 

Net income

 

 

1,650

 

 

 

1,801

 

 

(8.4

)%

 

 

 

 

 

 

 

Net loss/(income) attributable to noncontrolling interests

 

 

3

 

 

 

(8

)

 

NM

 

 

 

 

 

 

 

 

Shareholders’ net income

 

$

1,653

 

 

$

1,793

 

 

(7.8

)%

 

 

 

 

 

 

 

Shareholders’ net income per diluted share

 

$

6.79

 

 

$

7.25

 

 

(6.3

)%

 

 

 

 

 

 

 

Diluted shares

 

 

243.4

 

 

 

247.4

 

 

(1.6

)%

 

 

 

 

 

 

 

Benefit expense as a percentage of premiums

 

 

87.0

%

 

 

86.8

%

 

20 bp

Selling, general and administrative expense as a percentage of total operating revenue

 

 

11.1

%

 

 

11.5

%

 

(40) bp

Income before income tax expense as a percentage of total revenue

 

 

5.5

%

 

 

7.0

%

 

(150) bp

 

«NM» = calculation not meaningful

Elevance Health, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

(In millions, except per share data)

 

Six Months Ended

June 30

 

 

 

 

2022

 

2021

 

Change

Revenues

 

 

 

 

 

 

Premiums

 

$

65,861

 

 

$

56,209

 

 

17.2

%

Product revenue

 

 

6,869

 

 

 

5,779

 

 

18.9

%

Administrative fees and other revenue

 

 

3,638

 

 

 

3,389

 

 

7.3

%

Total operating revenue

 

 

76,368

 

 

 

65,377

 

 

16.8

%

Net investment income

 

 

741

 

 

 

691

 

 

7.2

%

Net (losses) gains on financial instruments

 

 

(382

)

 

 

168

 

 

(327.4

)%

 

 

 

 

 

 

 

Total revenues

 

 

76,727

 

 

 

66,236

 

 

15.8

%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Benefit expense

 

 

56,992

 

 

 

48,462

 

 

17.6

%

Cost of products sold

 

 

5,952

 

 

 

4,927

 

 

20.8

%

Selling, general and administrative expense

 

 

8,610

 

 

 

7,746

 

 

11.2

%

Interest expense

 

 

409

 

 

 

397

 

 

3.0

%

Amortization of other intangible assets

 

 

295

 

 

 

170

 

 

73.5

%

Loss on extinguishment of debt

 

 

 

 

 

5

 

 

(100.0

)%

 

 

 

 

 

 

 

Total expenses

 

 

72,258

 

 

 

61,707

 

 

17.1

%

 

 

 

 

 

 

 

Income before income tax expense

 

 

4,469

 

 

 

4,529

 

 

(1.3

)%

 

 

 

 

 

 

 

Income tax expense

 

 

1,024

 

 

 

1,061

 

 

(3.5

)%

 

 

 

 

 

 

 

Net income

 

 

3,445

 

 

 

3,468

 

 

(0.7

)%

 

 

 

 

 

 

 

Net loss/(income) attributable to noncontrolling interests

 

 

13

 

 

 

(10

)

 

NM

 

 

 

 

 

 

 

 

Shareholders’ net income

 

$

3,458

 

 

$

3,458

 

 

%

 

 

 

 

 

 

 

Shareholders’ net income per diluted share

 

$

14.18

 

 

$

13.95

 

 

1.6

%

 

 

 

 

 

 

 

Diluted shares

 

 

243.9

 

 

 

247.8

 

 

(1.6

)%

 

 

 

 

 

 

 

Benefit expense as a percentage of premiums

 

 

86.5

%

 

 

86.2

%

 

30 bp

Selling, general and administrative expense as a percentage of total operating revenue

 

 

11.3

%

 

 

11.8

%

 

(50) bp

Income before income tax expense as a percentage of total revenue

 

 

5.8

%

 

 

6.8

%

 

(100) bp

 

«NM» = calculation not meaningful

Elevance Health, Inc.

Consolidated Balance Sheets

 

(In millions)

June 30,
2022

 

December 31,
2021

Assets

(Unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

6,456

 

 

$

4,880

 

Fixed maturity securities

 

25,765

 

 

 

26,267

 

Equity securities, current

 

1,572

 

 

 

1,881

 

Premium receivables

 

6,757

 

 

 

5,681

 

Self-funded receivables

 

3,844

 

 

 

4,010

 

Other receivables

 

3,600

 

 

 

3,749

 

Other current assets

 

5,661

 

 

 

4,654

 

Total current assets

 

53,655

 

 

 

51,122

 

 

 

 

 

Long-term investments:

 

 

 

Fixed maturity securities

 

603

 

 

 

632

 

Other invested assets

 

5,398

 

 

 

5,225

 

Property and equipment, net

 

4,090

 

 

 

3,919

 

Goodwill

 

24,367

 

 

 

24,228

 

Other intangible assets

 

10,762

 

 

 

10,615

 

Other noncurrent assets

 

2,002

 

 

 

1,719

 

Total assets

$

100,877

 

 

$

97,460

 

 

 

 

 

Liabilities and equity

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Medical claims payable

$

15,127

 

 

$

13,518

 

Other policyholder liabilities

 

5,577

 

 

 

5,521

 

Unearned income

 

971

 

 

 

1,153

 

Accounts payable and accrued expenses

 

5,850

 

 

 

4,970

 

Short-term borrowings

 

175

 

 

 

275

 

Current portion of long-term debt

 

2,248

 

 

 

1,599

 

Other current liabilities

 

9,360

 

 

 

7,849

 

Total current liabilities

 

39,308

 

 

 

34,885

 

 

 

 

 

Long-term debt, less current portion

 

21,165

 

 

 

21,157

 

Reserves for future policy benefits

 

822

 

 

 

802

 

Deferred tax liabilities, net

 

2,021

 

 

 

2,805

 

Other noncurrent liabilities

 

1,694

 

 

 

1,683

 

Total liabilities

 

65,010

 

 

 

61,332

 

 

 

 

 

Shareholders’ equity

 

 

 

Common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

9,134

 

 

 

9,148

 

Retained earnings

 

28,825

 

 

 

27,088

 

Accumulated other comprehensive loss

 

(2,149

)

 

 

(178

)

Total shareholders’ equity

 

35,812

 

 

 

36,060

 

Noncontrolling interests

 

55

 

 

 

68

 

Total equity

 

35,867

 

 

 

36,128

 

Total liabilities and equity

$

100,877

 

 

$

97,460

 

Elevance Health, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

(In millions)

Six Months Ended June 30

 

2022

 

2021

Operating activities

 

 

 

Net income

$

3,445

 

 

$

3,468

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Net losses (gains) on financial instruments

 

382

 

 

 

(168

)

Equity in net earnings of other invested assets

 

(258

)

 

 

(309

)

Depreciation and amortization

 

751

 

 

 

591

 

Deferred income taxes

 

(172

)

 

 

(8

)

Share-based compensation

 

122

 

 

 

133

 

Changes in operating assets and liabilities:

 

 

 

Receivables, net

 

(662

)

 

 

(1,632

)

Other invested assets

 

32

 

 

 

(44

)

Other assets

 

(419

)

 

 

(247

)

Policy liabilities

 

1,514

 

 

 

1,912

 

Unearned income

 

(182

)

 

 

(180

)

Accounts payable and other liabilities

 

632

 

 

 

560

 

Income taxes

 

(159

)

 

 

106

 

Other, net

 

(33

)

 

 

6

 

Net cash provided by operating activities

 

4,993

 

 

 

4,188

 

 

 

 

 

Investing activities

 

 

 

Purchases of investments

 

(13,253

)

 

 

(11,221

)

Proceeds from sale of investments

 

7,140

 

 

 

6,345

 

Maturities, calls and redemptions from investments

 

4,347

 

 

 

2,246

 

Changes in securities lending collateral

 

(620

)

 

 

(642

)

Purchases of subsidiaries, net of cash acquired

 

(609

)

 

 

(3,442

)

Purchases of property and equipment

 

(549

)

 

 

(489

)

Other, net

 

(58

)

 

 

(29

)

Net cash used in investing activities

 

(3,602

)

 

 

(7,232

)

 

 

 

 

Financing activities

 

 

 

Net proceeds from commercial paper borrowings

 

250

 

 

 

300

 

Net proceeds from (repayments of) short-term borrowings

 

(100

)

 

 

175

 

Net proceeds from long-term borrowings

 

357

 

 

 

2,510

 

Changes in securities lending payable

 

620

 

 

 

642

 

Changes in bank overdrafts

 

817

 

 

 

364

 

Repurchase and retirement of common stock

 

(1,169

)

 

 

(927

)

Cash dividends

 

(618

)

 

 

(555

)

Proceeds from issuance of common stock under employee stock plans

 

116

 

 

 

141

 

Taxes paid through withholding of common stock under employee stock plans

 

(88

)

 

 

(93

)

Other, net

 

10

 

 

 

11

 

Net cash provided by financing activities

 

195

 

 

 

2,568

 

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

 

(10

)

 

 

(7

)

 

 

 

 

Change in cash and cash equivalents

 

1,576

 

 

 

(483

)

Cash and cash equivalents at beginning of period

 

4,880

 

 

 

5,741

 

 

 

 

 

Cash and cash equivalents at end of period

$

6,456

 

 

$

5,258

 

Elevance Health, Inc.

Reconciliation of Medical Claims Payable

 

 

Six Months Ended June 30

 

Years Ended December 31

 

2022

 

2021

 

2021

 

2020

 

2019

(In millions)

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross medical claims payable, beginning of period

$

13,282

 

 

$

11,135

 

 

$

11,135

 

 

$

8,647

 

 

$

7,266

 

Ceded medical claims payable, beginning of period

 

(21

)

 

 

(46

)

 

 

(46

)

 

 

(33

)

 

 

(34

)

Net medical claims payable, beginning of period

 

13,261

 

 

 

11,089

 

 

 

11,089

 

 

 

8,614

 

 

 

7,232

 

 

 

 

 

 

 

 

 

 

 

Business combinations and purchase adjustments

 

133

 

 

 

420

 

 

 

420

 

 

 

339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net incurred medical claims:

 

 

 

 

 

 

 

 

 

Current year

 

55,737

 

 

 

48,343

 

 

 

100,440

 

 

 

85,094

 

 

 

78,695

 

Prior years redundancies(1)

 

(972

)

 

 

(1,772

)

 

 

(1,703

)

 

 

(637

)

 

 

(500

)

Total net incurred medical claims

 

54,765

 

 

 

46,571

 

 

 

98,737

 

 

 

84,457

 

 

 

78,195

 

 

 

 

 

 

 

 

 

 

 

Net payments attributable to:

 

 

 

 

 

 

 

 

 

Current year medical claims

 

42,882

 

 

 

37,533

 

 

 

88,156

 

 

 

74,629

 

 

 

70,294

 

Prior years medical claims

 

10,401

 

 

 

7,767

 

 

 

8,829

 

 

 

7,692

 

 

 

6,519

 

Total net payments

 

53,283

 

 

 

45,300

 

 

 

96,985

 

 

 

82,321

 

 

 

76,813

 

 

 

 

 

 

 

 

 

 

 

Net medical claims payable, end of period

 

14,876

 

 

 

12,780

 

 

 

13,261

 

 

 

11,089

 

 

 

8,614

 

Ceded medical claims payable, end of period

 

13

 

 

 

41

 

 

 

21

 

 

 

46

 

 

 

33

 

Gross medical claims payable, end of period

$

14,889

 

 

$

12,821

 

 

$

13,282

 

 

$

11,135

 

 

$

8,647

 

 

 

 

 

 

 

 

 

 

 

Current year medical claims paid as a percentage of current year net incurred medical claims

 

76.9

%

 

 

77.6

%

 

 

87.8

%

 

 

87.7

%

 

 

89.3

%

 

 

 

 

 

 

 

 

 

 

Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year

 

7.9

%

 

 

19.0

%

 

 

18.1

%

 

 

8.0

%

 

 

7.4

%

 

 

 

 

 

 

 

 

 

 

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims

 

1.0

%

 

 

2.1

%

 

 

2.0

%

 

 

0.8

%

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

(1) Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.

Elevance Health, Inc.

GAAP Reconciliation

(Unaudited)

Elevance Health, Inc. has referenced “Adjusted Net Income” and “Adjusted Net Income Per Share,” which are non-GAAP measures, in this document.

Contacts

Elevance Health Contacts:
Investor Relations
Stephen Tanal
Stephen.Tanal@elevancehealth.com

Media
Leslie Porras
Leslie.Porras@elevancehealth.com

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