FALSE000115603900011560392025-01-232025-01-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

January 23, 2025
Date of Report (Date of earliest event reported)
___________________________________
Elevance Health, Inc.
(Exact name of registrant as specified in its charter)
___________________________________

Indiana
(State or other jurisdiction of
incorporation or organization)
001-16751
(Commission File Number)
35-2145715
(I.R.S. Employer Identification Number)
220 Virginia Ave
Indianapolis, IN 46204
(Address of principal executive offices and zip code)
(833) 401-1577
(Registrant's telephone number, including area code)
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, Par Value $0.01ELVNYSE
Indicate by check mark whether the registrant is an emerging growth company as defined Rule 405 of the Securities Act (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act (§240.12b-2 of this chapter).
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 - Results of Operations and Financial Condition.

On January 23, 2025, Elevance Health, Inc. issued a press release reporting its fourth quarter and
full year 2024 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

None of the information furnished in Item 2.02 or Exhibit 99.1 hereto shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. Unless expressly set forth by specific reference in such filings, none of the information furnished in this report shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.Exhibit
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
FORWARD-LOOKING STATEMENTS    

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and


other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 23rd day of January, 2025.



ELEVANCE HEALTH, INC.
By:
/s/ Kathleen S. Kiefer
Name:
Kathleen S. Kiefer
Title:
Chief Governance Officer and Corporate Secretary


E A R N I N G S R E L E A S E

elevancehealtha.jpg
ELEVANCE HEALTH REPORTS FOURTH QUARTER AND
FULL YEAR 2024 RESULTS; SETS FULL YEAR 2025 OUTLOOK

•4Q 2024 operating revenue of $45.0 billion; FY 2024 of $175.2 billion
•4Q 2024 diluted EPS1 of $1.81; adjusted diluted EPS2 of $3.84
•FY 2024 diluted EPS1 of $25.68; adjusted diluted EPS2 of $33.04
•Projected FY 2025 GAAP diluted EPS1 to be in the range of $30.40 to $31.10
•Projected FY 2025 adjusted diluted EPS2 to be in the range of $34.15 to $34.85
•Quarterly dividend increased by 5% to $1.71 per share

Indianapolis, IN - January 23, 2025 - Elevance Health, Inc. (NYSE: ELV) reported fourth quarter and full year 2024 results.

“As part of our commitment to elevating whole health and advancing health beyond healthcare, we deliver value to the members and care providers we serve by ensuring simple, affordable, and accessible care. Our fourth quarter results demonstrate tangible progress in improving our operations in response to the dynamic environment facing the industry. As we look to 2025, we remain resolute in our goal to simplify the healthcare experience, deepen the impact of Carelon, and deploy innovative care models, positioning us to achieve sustainable growth over the long run."
Gail K. Boudreaux
President and Chief Executive Officer




1.Earnings per diluted share ("EPS").
2.Refer to GAAP reconciliation tables on pages 13 and 14 herein for reconciliation of GAAP to adjusted measures.

1

imagea.jpg
Elevance Health
Consolidated Enterprise Highlights
(Unaudited)
(In billions)Three Months EndedTwelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Operating Revenue1
$45.0$42.5$175.2$170.2
Operating Gain1,2
$0.7$1.3$7.9$8.5
Adjusted Operating Gain1,3
$1.0$1.4$9.3$9.4
Operating Margin1
1.5 %3.0 %4.5 %5.0 %
Adjusted Operating Margin1
2.3 %3.2 %5.3 %5.5 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three and twelve months ended December 31, 2024, and December 31, 2023, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
3.Adjusted Operating Gain for the three and twelve months ended December 31, 2024, and December 31, 2023, exclude items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.

Operating revenue was $45.0 billion in the fourth quarter of 2024, an increase of $2.5 billion, or 6 percent compared to the prior year quarter. Operating revenue was $175.2 billion in 2024, an increase of $5.0 billion, or 3 percent. The increase in revenue for the quarter and year was driven by higher premium yields in our Health Benefits segment, acquisitions completed in 2024, and growth in CarelonRx product revenue, partially offset by membership attrition in our Medicaid business.
The benefit expense ratio was 92.4 percent in the fourth quarter, an increase of 320 basis points compared to the prior year period, and 88.5 percent for the full year, an increase of 150 basis points year over year. The increases were driven primarily by higher Medicaid medical cost trends. Days in Claims Payable was 42.9 days as of December 31, 2024, a slight increase of 0.1 days from September 30, 2024, and a decrease of 4.4 days compared to December 31, 2023.
The operating expense ratio was 10.7 percent in the fourth quarter and 11.4 percent for the full year. On an adjusted basis, the corresponding operating expense ratios were 9.9 percent and 10.6 percent. The improvements in the adjusted operating expense ratio over prior year periods of 170 basis points and 70 basis points, respectively, reflect disciplined cost management and enhanced efficiency.
Cash Flow & Balance Sheet
Operating cash flow was $5.8 billion in 2024, approximately 1.0 times GAAP net income. As of December 31, 2024, cash and investments at the parent company totaled approximately $2.4 billion.
During the fourth quarter of 2024, the Company repurchased 4.5 million shares of its common stock for $1.8 billion, at a weighted average price of $401.29, and paid a quarterly dividend of $1.63 per share, representing a distribution of cash totaling $373 million. As of December 31, 2024, the Company had approximately $9.3 billion of Board approved share repurchase authorization remaining.
2

abs_rxhxrgbxcxaligneda.jpg wlp_rxhxrgbxcxaligneda.jpg
Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses.
Health Benefits
Reportable Segment Highlights
(Unaudited)
(In billions)
Three Months Ended
Twelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Operating Revenue1
$37.6$36.5$150.3$148.6
Operating Gain1,2
$0.2$0.8$6.2$6.9
Adjusted Operating Gain1,3
$0.3$0.8$6.3$6.9
Operating Margin1
0.6 %2.1 %4.2 %4.6 %
Adjusted Operating Margin1
0.7 %2.1 %4.2 %4.6 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three and twelve months ended December 31, 2024 include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
3.Operating gain for both the three and twelve months ended December 31, 2024 includes $66 million of business dispositions and related items adjusted out of adjusted shareholders' net income for the Health Benefits segment.

Health Benefits segment operating revenue was $37.6 billion in the fourth quarter of 2024, an increase of $1.0 billion, or 3 percent compared to the fourth quarter of 2023. Operating revenue was $150.3 billion in 2024, an increase of $1.7 billion, or 1 percent. The increases for the quarter and year were driven primarily by higher premium yields, partially offset by membership attrition in our Medicaid business.
Operating gain totaled $0.2 billion in the fourth quarter of 2024 and $6.2 billion for the full year. On an adjusted basis, operating gain was $0.3 billion in the fourth quarter of 2024 and $6.3 billion for the full year. Adjusted operating gain in both periods was impacted primarily by higher cost trend in Medicaid related to redeterminations.
Medical membership totaled approximately 45.7 million as of December 31, 2024, a decrease of 1.1 million, or 2 percent year over year, driven by attrition in our Medicaid business, partially offset by growth in Employer Group fee-based and Affordable Care Act health plan membership.


3


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Carelon is comprised of CarelonRx and Carelon Services.
Carelon
Reportable Segment Highlights
(Unaudited)
(In billions)
Three Months Ended
Twelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Operating Revenue1,2
$14.7$12.4$53.9$48.0
Operating Gain1
$0.6$0.6$2.9$2.7
Adjusted Operating Gain1,3
$0.8$0.6$3.1$2.7
Operating Margin1
3.9 %4.8 %5.4 %5.5 %
Adjusted Operating Margin1
5.3 %4.8 %5.8 %5.5 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating revenue for both the three and twelve months ended December 31, 2024 includes $0.8 of revenue related to business dispositions and related items that have been excluded from adjusted operating gain.
3.Operating gain for both the three and twelve months ended December 31, 2024 includes $0.2 of business dispositions and related items adjusted out of adjusted shareholders' net income for the Carelon segment.

Operating revenue for Carelon was $14.7 billion in the fourth quarter of 2024, an increase of $2.3 billion, or 19 percent compared to the prior year period. Operating revenue was $53.9 billion in 2024, an increase of $5.9 billion, or 12 percent. The increases for the quarter and the year were driven by the launch and growth of risk-based capabilities in Carelon Services and acquisitions completed in 2024.
Operating gain for Carelon totaled $0.6 billion in the fourth quarter, effectively flat year over year; however, on an adjusted basis, operating gain was $0.8 billion, an increase of $0.2 billion, or 32 percent. The increase for the fourth quarter of 2024 was driven by higher pharmacy product revenue. On a full year basis, operating gain was $2.9 billion in 2024, an increase of $0.2 billion, or 9 percent. Similarly, on an adjusted basis, operating gain was $3.1 billion, an increase of $0.4 billion, or 17 percent.
4

Quarterly Dividend
On January 22, 2025, the Audit Committee of the Company's Board of Directors declared a first quarter 2025 dividend to shareholders of $1.71 per share. The first quarter dividend is payable on March 25, 2025, to shareholders of record at the close of business on March 10, 2025.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 112 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30 a.m. Eastern Standard Time (“EST”) to discuss the company’s fourth quarter and full year 2024 results and 2025 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)866-405-7292 (Domestic Replay)
312-470-0178 (International)203-369-0604 (International Replay)
The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EST today, until the end of the day on February 21, 2025. 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.
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 operating 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 pages 13 and 14 for the GAAP reconciliation tables.
2.Operating margin is defined as operating gain divided by operating revenue.
Elevance Health Contacts:
Investor Relations            
Media
Nathan RichLeslie Porras
Investor.Relations@elevancehealth.com
Leslie.Porras@elevancehealth.com
5

Elevance Health
Earnings Release Financial Schedules and Supplementary Information
Quarter & Year Ended December 31, 2024

•Membership and Other Metrics
•Quarterly & Full Year Consolidated Statements of Income
•Condensed Consolidated Balance Sheet
•Condensed Consolidated Statement of Cash Flows
•Supplemental Financial Information - Reportable Segments
•Supplemental Financial Information - Reconciliation of Medical Claims Payable
•Reconciliation of Non-GAAP Financial Measures
•Financial Guidance Summary
•Membership Guidance Summary

6

Elevance Health
Membership and Other Metrics
(Unaudited)
 Change from
Medical Membership (in thousands)December 31,
2024		December 31,
2023		September 30,
2024		December 31,
2023		September 30,
2024
Individual1,287 1,025 1,299 25.6 %(0.9)%
Employer Group Risk-Based3,713 3,756 3,672 (1.1)%1.1 %
Commercial Risk-Based5,000 4,781 4,971 4.6 %0.6 %
BlueCard®1
6,630 6,706 6,677 (1.1)%(0.7)%
Employer Group Fee-Based20,569 20,227 20,589 1.7 %(0.1)%
Commercial Fee-Based27,199 26,933 27,266 1.0 %(0.2)%
Medicare Advantage2,066 2,047 2,047 0.9 %0.9 %
Medicare Supplement891 923 894 (3.5)%(0.3)%
Total Medicare2,957 2,970 2,941 (0.4)%0.5 %
Medicaid8,917 10,503 8,926 (15.1)%(0.1)%
Federal Employee Program
1,661 1,642 1,656 1.2 %0.3 %
Total Medical Membership45,734 46,829 45,760 (2.3)%(0.1)%
Other Membership (in thousands)
Dental Members7,282 6,820 7,021 6.8 %3.7 %
Dental Administration Members1,887 1,729 1,878 9.1 %0.5 %
Vision Members10,419 9,944 10,382 4.8 %0.4 %
Medicare Part D Standalone Members256 260 258 (1.5)%(0.8)%
Other Metrics (in millions)
CarelonRx Quarterly Adjusted Scripts82.9 78.0 80.2 6.3 %3.4 %
Carelon Services Consumers Served101.1 103.3 101.3(2.1)%(0.2)%
1.BlueCard® membership for the three months ended December 31, 2023, is restated to align to the Blue Cross Blue Shield Association reporting methodology. For the three months ended December 31, 2023, BlueCard® membership has been restated lower by 132.
7

Elevance Health
Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)Three Months Ended 
 December 31		Twelve Months Ended 
 December 31
20242023Change20242023Change
Revenues
Premiums
$36,245$35,1383.2%$144,166$142,8540.9%
Product revenue6,7145,39424.5%22,63019,45216.3%
Service fees2,0301,9225.6%8,4087,9036.4%
Total operating revenue44,98942,4546.0%175,204170,2092.9%
Net investment income527529(0.4)%2,0511,82512.4%
Net losses on financial instruments(74)(336)NM(445)(694)NM
Gain on sale of business
——NM201—NM
Total revenues45,44242,6476.6%177,011171,3403.3%
Expenses
Benefit expense33,50031,3346.9%127,567124,3302.6%
Cost of products sold6,0124,83724.3%19,75017,29314.2%
Operating expense4,8044,999(3.9)%20,02520,087(0.3)%
Interest expense34025931.3%1,1851,03015.0%
Amortization of other intangible assets180217(17.1)%580885(34.5)%
Total expenses44,83641,6467.7%169,107163,6253.4%
Income before income tax expense6061,001(39.5)%7,9047,7152.4%
Income tax expense19317013.5%1,9331,72412.1%
Net income413831(50.3)%5,9715,991(0.3)%
Net loss (income) attributable to noncontrolling interests
525NM9(4)NM
Shareholders' net income$418$856(51.2)%$5,980$5,987(0.1)%
Shareholders' earnings per diluted share
$1.81$3.63(50.1)%$25.68$25.221.8%
Diluted shares231.1235.8(2.0)%232.9237.4(1.9)%
Benefit expense as a percentage of premiums92.4 %89.2 %320 bp88.5 %87.0 %150 bp
Operating expense as a percentage of total operating revenue10.7 %11.8 %(110)bp11.4 %11.8 %(40)bp
Income before income tax expense as a percentage of total revenue1.3 %2.3 %(100)bp4.5 %4.5 %— bp

"NM" = calculation not meaningful
8

Elevance Health
Condensed Consolidated Balance Sheet
(In millions)December 31,
2024		December 31,
2023
Assets(Unaudited)
Current assets:
Cash and cash equivalents$8,288$6,526
Fixed maturity and equity securities26,393 29,843 
Premium and other receivables18,796 17,865 
Other current assets4,759 5,795 
Assets held for sale
490 — 
Total current assets58,726 60,029 
Long-term investments10,784 6,983 
Property and equipment, net4,652 4,359 
Goodwill and other intangible assets40,371 35,590 
Other noncurrent assets2,140 1,967 
Total assets$116,673$108,928
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable$15,626$16,111
Short-term borrowings365 225 
Current portion of long-term debt1,649 1,649 
Other current liabilities22,572 23,806 
Liabilities held for sale
153 — 
Total current liabilities40,365 41,791 
Long-term debt, less current portion29,218 23,246 
Other noncurrent liabilities5,664 4,486 
Total liabilities75,247 69,523 
Total shareholders’ equity41,315 39,306 
Noncontrolling interests111 99 
Total equity41,426 39,405 
Total liabilities and equity$116,673$108,928

9

Elevance Health
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(In millions)Twelve Months Ended December 31
20242023
Operating activities
Net income$5,971 $5,991 
Depreciation and amortization1,393 1,745 
Share-based compensation191 289 
Changes in operating assets and liabilities(1,719)(534)
Other non-cash items(28)570 
Net cash provided by operating activities5,808 8,061 
Investing activities
Proceeds from sale/ (purchases) of investments, net of maturities
586 (2,700)
Net purchases of subsidiaries, net of cash acquired/sold
(4,446)(1,552)
Purchases of property and equipment(1,256)(1,296)
Other, net(51)(24)
Net cash used in investing activities(5,167)(5,572)
Financing activities
Net change in short-term and long-term borrowings6,200 626 
Repurchase and retirement of common stock(2,900)(2,676)
Cash dividends(1,508)(1,395)
Other, net(599)96 
Net cash provided by (used in) financing activities
1,193 (3,349)
Effect of foreign exchange rates on cash and cash equivalents(6)(1)
Change in cash and cash equivalents1,828 (861)
Cash and cash equivalents at beginning of period6,526 7,387 
Less cash and equivalents included in assets held for sale at end of period(66)— 
Cash and cash equivalents at end of period$8,288$6,526

10

REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).
Elevance Health
Reportable Segment Highlight Details
(Unaudited)
(In millions)Three Months Ended December 31Twelve Months Ended December 31
20242023Change20242023Change
Operating Revenue
Health Benefits$37,580$36,5472.8 %$150,275$148,5711.1 %
CarelonRx9,9778,82713.0 %35,96133,8356.3 %
Carelon Services
4,7693,57433.4 %17,96114,14727.0 %
Corporate & Other
(14)181
NM5
309479(35.5)%
Eliminations
(7,323)(6,675)9.7 %(29,302)(26,823)9.2 %
Total Operating Revenue1
$44,989$42,4546.0 %$175,204$170,2092.9 %
Operating Gain (Loss)
Health Benefits2
$207$767(73.0)%$6,243$6,888(9.4)%
CarelonRx5334908.8 %2,1721,97510.0 %
Carelon Services2
35102(65.7)%7176805.4 %
Corporate & Other2,3
(102)(75)
NM5
(1,270)(1,044)
NM5
Total Operating Gain1,4
$673$1,284(47.6)%$7,862$8,499(7.5)%
Operating Margin
Health Benefits0.6 %2.1 %(150) bp4.2 %4.6 %(40) bp
CarelonRx5.3 %5.6 %(30) bp6.0 %5.8 %20 bp
Carelon Services0.7 %2.9 %(220) bp4.0 %4.8 %(80) bp
Total Operating Margin1
1.5 %3.0 %(150) bp4.5 %5.0 %(50) bp
1.See “Basis of Presentation” on page 5 herein.
2.Operating gain for the three and twelve months ended December 31, 2024 included $281 of business dispositions and related items excluded from adjusted shareholders' net income; including $215 for the Carelon Services segment; and $66 for the Health Benefits segment. Operating gain for the three and twelve months ended December 31, 2024 included $66 and $224, respectively, of transaction and integration related costs, all of which resides in the Corporate & Other reportable segment. Operating gain for the three and twelve months ended December 31, 2024 included $12 and $692, respectively, of litigation and settlement expenses, all of which resides in the Corporate & Other reportable segment. Operating gain for the twelve months ended December 31, 2024 included $268 of business optimization charges which reside in the Corporate & Other reportable segment.
3.Operating gain for the three and twelve months ended December 31, 2023 included; $59 and $213, respectively, of transaction and integration related costs; $22 and $719, respectively, of business optimization charges; and ($7) and ($2), respectively, of litigation and settlement expenses.
4.Operating Gain for the three and twelve months ended December 31, 2024, and December 31, 2023, included items excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
5."NM" = calculation not meaningful.
11

Elevance Health
Reconciliation of Medical Claims Payable
Years Ended December 31
202420232022
(In millions)(Unaudited)
Gross medical claims payable, beginning of year$15,865 $15,348 $13,282 
Ceded medical claims payable, beginning of year(7)(6)(21)
Net medical claims payable, beginning of year15,858 15,342 13,261 
Business combinations and purchase adjustments143 — 133 
Net incurred medical claims:
Current year125,370 121,798 113,414 
Prior years redundancies1
(1,731)(1,571)(869)
Total net incurred medical claims123,639 120,227 112,545 
Net payments attributable to:
Current year medical claims111,051 107,146 98,997 
Prior years medical claims13,142 12,565 11,600 
Total net payments124,193 119,711 110,597 
Net medical claims payable, end of year15,447 15,858 15,342 
Ceded medical claims payable, end of year13 7 6 
Gross medical claims payable, end of year2
$15,460 $15,865 $15,348 
Current year medical claims paid as a percentage of current year net incurred medical claims
88.6 %88.0 %87.3 %
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
12.3 %11.4 %7.0 %
Prior year redundancies in the current year as a percentage of prior year net incurred medical claims
1.4 %1.4 %0.9 %
1.Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.
2.Excludes insurance lines other than short duration.

12

Elevance Health
GAAP Reconciliation
(Unaudited)
This document references non-GAAP measures, including “Adjusted Shareholders’ Net Income,” “Adjusted Shareholders’ Net Income Per Share,” “Adjusted EPS,” “Adjusted Operating Gain,” “Adjusted Operating Expense” and “Adjusted Operating Expense Ratio,” which are non-GAAP measures. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain/Loss,” “Operating Margin” and “Adjusted EPS”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable 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 operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and 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. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein.
Three Months Ended December 31Twelve Months Ended December 31
(In millions, except per share data)20242023Change20242023Change
Shareholders' net income$418 $856 (51.2)%$5,980 $5,987 (0.1)%
Add / (Subtract):
Business dispositions and related items1
281 — 281 — 
Amortization of other intangible assets180 217 580 885 
Net losses on financial instruments
74 336 445 694 
Transaction and integration related costs2
66 59 224 213 
Litigation and settlement expenses2
12 (7)692 (2)
Gain on sale of business— — (201)— 
Business optimization charges2
— 22 268 719 
Tax impact of non-GAAP adjustments(143)(158)(575)(628)
Net adjustment items470 469 1,714 1,881 
Adjusted shareholders' net income$888 $1,325 (33.0)%$7,694 $7,868 (2.2)%
Shareholders' earnings per diluted share$1.81 $3.63 (50.1)%$25.68 $25.22 1.8 %
Add / (Subtract):
Business dispositions and related items1
1.22 — 1.21 — 
Amortization of other intangible assets0.78 0.92 2.49 3.73 
Net losses on financial instruments
0.32 1.42 1.91 2.92 
Transaction and integration related costs2
0.29 0.25 0.96 0.90 
Litigation and settlement expenses2
0.05 (0.03)2.97 (0.01)
Gain on sale of business— — (0.86)— 
Business optimization charges2
— 0.09 1.15 3.03 
Tax impact of non-GAAP adjustments(0.62)(0.67)(2.47)(2.65)
Net adjustment items2.03 1.99 7.36 7.92 
Adjusted shareholders' earnings per diluted share
$3.84 $5.62 (31.7)%$33.04 $33.14 (0.3)%
Three Months Ended December 31Twelve Months Ended December 31
(In millions)20242023Change20242023Change
Income before income tax expense$606 $1,001 (39.5)%$7,904 $7,715 2.4 %
Net investment income(527)(529)(2,051)(1,825)
Gain on sale of business
— — (201)— 
Net losses on financial instruments74 336 445 694 
Interest expense340 259 1,185 1,030 
Amortization of other intangible assets180 217 580 885 
Reportable segments operating gain$673 $1,284 (47.6)%$7,862 $8,499 (7.5)%
1.Adjustment item resides in the Health Benefits and Carelon Services reportable segments.
2.Adjustment item resides in the Corporate & Other reportable segment.
13

Elevance Health
GAAP Reconciliation
(Unaudited)
Three Months Ended December 31Twelve Months Ended December 31
(In millions)20242023Change20242023Change
Reportable segments operating gain$673 $1,284 (47.6)%$7,862 $8,499 (7.5)%
Add / (Subtract):
Business dispositions and related items1
281 — 281 — 
Transaction and integration related costs2
66 59 224 213 
Litigation and settlement expenses2
12 (7)692 (2)
Business optimization charges2
— 22 268 719 
Net adjustment items
359 74 1,465 930 
Reportable segments adjusted operating gain$1,032 $1,358 (24.0)%$9,327 $9,429 (1.1)%
Three Months Ended December 31Twelve Months Ended December 31
(In millions)20242023Change20242023Change
Operating expense$4,804 $4,999 (3.9)%$20,025 $20,087 (0.3)%
Add / (Subtract):
Business dispositions and related items1
(281)— (281)— 
Transaction and integration related costs2
(66)(59)(224)(213)
Litigation and settlement expenses2
(12)7 (692)2 
Business optimization charges2
— (22)(268)(719)
Net adjustment items(359)(74)(1,465)(930)
Adjusted operating expense$4,445 $4,925 (9.7)%$18,560 $19,157 (3.1)%
Operating revenue$44,989$42,4546.0 %$175,204$170,2092.9 %
Operating expense ratio10.7 %11.8 %(110) bp11.4 %11.8 %(40) bp
Adjusted operating expense ratio9.9 %11.6 %(170) bp10.6 %11.3 %(70) bp
Full Year 2025 Outlook
Shareholders' earnings per diluted share
$30.40 to $31.10
Add / (Subtract):
Amortization of other intangibles3
$2.57 
Net losses on financial instruments3
$1.12 
Transaction and integration related costs2,3
$1.11 
Litigation and settlement expenses2,3
$0.04 
Tax impact of non-GAAP adjustments3
Approximately ($1.09)
Net adjustment items$3.75 
Adjusted shareholders' earnings per diluted share
$34.15 to $34.85
1.Adjustment item resides in the Health Benefits and Carelon Services reportable segments.
2.Adjustment item resides in the Corporate & Other reportable segment.
3.Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount.
14

Elevance Health
Financial Guidance Summary
(Unaudited)
Full Year 2024 ActualFull Year 2025 Outlook
Premium Revenue
$144.2 billion
Low double digit growth
Product Revenue
$22.6 billion
Low single digit growth
Service Fees
$8.4 billion
Approximately flat
Total Operating Revenue
$175.2 billion
High single to low double digit growth
Benefit Expense Ratio88.5%
89.1% +/- 50 bps
Adjusted Operating Expense Ratio
10.6%
10.4% +/- 50 bps
Adjusted Operating Gain
$9.3 billion
$9.55 - $9.85 billion
Other Pre-Tax Items:
Net Investment income
$2,051 million
$1,875 million
Interest Expense($1,185) million
($1,475) million
Amortization of Intangible Assets
($580) million
($580) million
Net Pre-Tax Income (Expense)
$286 million
($180) million
Adjusted Effective Tax Rate
24.6%
22.0% - 24.0%
GAAP Diluted EPS
$25.68
$30.40 - $31.10
Adjusted Diluted EPS
$33.04
$34.15 - $34.85
Diluted Shares 232.9 million
225 - 226 million
Operating Cash Flow
$5.8 billion
Approximately $8.0 billion
Segment Level Guidance Metrics
Operating Revenue Growth Rate
Health Benefits$150.3 billion
High single digit growth
CarelonRx$36.0 billion
Mid teens growth
Carelon Services$18.0 billion
Greater than 50% growth
GAAP Operating Margin vs. 2024
Health Benefits4.2%
(50) - (25) bps
CarelonRx6.0%
0 - 20 bps
Carelon Services4.0%
(100) - (50) bps
15

Elevance Health
Membership Guidance Summary
(Unaudited)
Full Year 2024 ActualFull Year 2025 Outlook
Year-End Medical Enrollment (in 000s)
Commercial Fee-Based
27,199
27,300 - 27,600
Commercial Risk-Based
5,000
5,150 - 5,350
Medicaid
8,917
8,600 - 8,900
Medicare Advantage
2,066
2,200 - 2,250
Medicare Supplement
891
Approximately 850
Federal Employee Program
1,661
Approximately 1,650
Fee-Based27,199
27,300 - 27,600
Risk-Based18,535
18,450 - 19,000
Total45,734
45,750 - 46,600
16

Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.
17
v3.24.4
Document and Entity Information
Jan. 23, 2025
Document and Entity Information [Line Items]  
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Entity Central Index Key 0001156039
Document Type 8-K
Document Period End Date Jan. 23, 2025
Entity Registrant Name Elevance Health, Inc.
Entity Incorporation, State or Country Code IN
Entity File Number 001-16751
Entity Tax Identification Number 35-2145715
Entity Address, Address Line One 220 Virginia Ave
Entity Address, City or Town Indianapolis
Entity Address, State or Province IN
Entity Address, Postal Zip Code 46204
City Area Code 833
Local Phone Number 401-1577
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, Par Value $0.01
Trading Symbol ELV
Security Exchange Name NYSE
Entity Emerging Growth Company false
Elevance Health (NYSE:ELV)
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