Elevance Health reported a first quarter profit of nearly $2 billion as the health insurer added more than 1 million new members, mostly from government subsidized health insurance plans.
Elevance, which operates an array of government and commercial health insurance including Blue Cross and Blue Shield plans in 14 states, Wednesday reported first quarter profits rose 11% to $1.99 billion compared to $1.79 billion in the year-ago quarter. Revenue increased nearly 11% to $42.17 billion.
Elevance is the latest health insurer to report solid growth as the industry benefits from strong government support of privatized healthcare benefits such as Medicare Advantage coverage for seniors and Medicaid for low-income Americans that are administered by health plans working with states. Last week, United Health Group reported profits of more than $5 billion in the first quarter.
Elevance’s membership grew by 1.3 million, or 2.9%, to 48.1 million as of March 31, 2023 compared to a year ago. The growth was “driven primarily by growth in Medicaid, commercial fee-based, Medicare Advantage and ACA (Affordable Care Act) health plan members, partially offset by attrition in our employer group risk-based business,” Elevance Health said in its first quarter earnings report.
Elevance’s profits and continued growth are expected to continue this year with the company now saying adjusted net income is now expected to be “greater than $32.70 per share.” That is a ahead of an earlier forecast for adjusted net income of “greater than $32.60” per share.
“Elevance Health is off to a strong start in 2023, driven by our continued focus on whole health and advancing health beyond healthcare,” Elevance Health President and CEO Gail K. Boudreaux said in a statement accompanying the earnings report. “Through our diverse and expanding offering of products and solutions, and our alignment with high-performing, value-based care providers, we continue to meet the needs of consumers, customers and the communities we serve, advancing our strategy of becoming a lifetime, trusted health partner.”