Insurer Elevance Health tops 1Q forecasts on Medicaid growth
A growing Medicaid business helped Elevance Health’s profit jump 11% as the health insurer turned in a better-than-expected first quarter
INDIANAPOLIS (AP) — A growing Medicaid business helped Elevance Health’s profit jump 11% as the health insurer turned in a better-than-expected first quarter.
But company shares tumbled at the start of trading Wednesday after Elevance also announced an updated 2023 forecast that fell short of Wall Street expectations.
In the first quarter, the Blue Cross-Blue Shield insurer saw enrollment in Medicaid programs it manages for states jumped 9% to 11.9 million people. The company’s total membership grew 3% to top 48 million.
The state-and-federally funded Medicaid program provides coverage to people with low incomes. Medicaid enrollment swelled nationally during the COVID-19 pandemic, when states were prevented from cutting people who no longer qualified for coverage. But that is expected to start changing this year as states resume removing ineligible people.
