Elevance Health: Can Its Carelon Services Expansion & Integration Give Them A Competitive Advantage?

Elevance Health’s third-quarter earnings reveal a mixed performance influenced by elevated medical costs, particularly in the Medicaid sector. The adjusted diluted earnings per share came in at $8.37, slightly below the company’s expectations, attributed primarily to elevated medical costs in the Medicaid business. Consequently, Elevance Health has revised its full-year guidance downward to an adjusted EPS of approximately $33. The company’s revised outlook reflects ongoing challenges in aligning Medicaid rates with the higher-than-expected acuity levels post-redetermination. Despite these difficulties, Elevance Health remains committed to investing in long-term growth prospects across its various business segments.