Elevance makes a late cut to its 2024 forecast after seeing trouble in Medicaid
Elevance Health surprised Wall Street with a rare, late-year guidance cut Thursday after a jump in Medicaid costs marred its third quarter
By TOM MURPHY
Published - Oct 17, 2024, 11:25 AM ET
Last Updated - Dec 16, 2024, 06:14 PM EST
INDIANAPOLIS (AP) — Elevance Health surprised Wall Street with a rare, late-year guidance cut Thursday after a jump in Medicaid costs marred its third quarter.
Shares of the Blue Cross-Blue Shield insurer tumbled after it joined rival UnitedHealth in noting that rates it receives for managing government-funded Medicaid programs weren't enough to offset a rise in costs.
Elevance dropped its forecast for 2024 adjusted earnings to approximately $33 per share after predicting at least $37.20 in July.
Wall Street was expecting $37.25 per share, according to the data firm FactSet.
