Elevance Health shares slide as profit forecast hike not enough to impress investors
ELV•Medicaid outlook remains cautious
Medicaid plans have come under added pressure from policy changes. As U.S. states re-determined Medicaid eligibility, many healthier members left the rolls, leaving a sicker population with greater medical needs. Funding constraints and changes to Medicaid work rules have compounded those challenges.
"Our Medicaid operating margin outlook remains appropriately prudent and unchanged from our prior guidance," said CEO Gail Boudreaux.
The company expects to exit additional Medicaid markets over the next 12 to 18 months, where it does not see a path to sustainable performance.
Analysts on average were expecting an annual profit of $26.86 per share, according to data compiled by LSEG.
Elevance's quarterly adjusted profit per share of $7.45 surpassed estimates of $6.21.
The insurer expects to return to at least 12% adjusted profit growth in 2027.
