Elevance Reports Mixed But Better News Than United
Elevance Health reaffirmed its 2025 earnings outlook, but did report some mixed news. Elevance beat The Street with revenue of $48.9 billion, up almost 15% year over year. It had profit of $2.2 billion, down 3% year over year. Elevance spent less money on medical care than analysts expected in Q1. Elevance did see higher costs in the first quarter, but premium hikes covered the trend. Still, the company advised it will approach 2025 cautiously.
Elevance noted it is ramping up care coordination with new members to prepare for medical cost trends that have dogged the health insurance sector. I have noted that plans will begin to pivot from utilization management to care management moving forward.
Additional articles: https://www.modernhealthcare.com/insurance/elevance-health-cost-predictions-medicare-advantage and https://www.healthcaredive.com/news/elevance-brushes-off-medicare-advantage-cost-fears-q1-2025/745961/ and https://www.modernhealthcare.com/insurance/elevance-health-lower-medical-costs and https://www.beckerspayer.com/payer/medicare-advantage-costs-manageable-for-elevance-health-8-notes/
(Some articles may require a subscription.)
#medicareadvantage #healthplans #elevancehealth #margins
Health Insurer CEO Salaries
Despite financial woes, leaders of prominent healthcare companies with health plans had a good compensation year in 2024. Modern Healthcare reports that all seven of the big publicly traded company CEOs had compensation between $15.6 million and $26.3 million. Becker’s also computed the CEO to median employee compensation ratio.
Additional article: https://www.beckerspayer.com/leadership/payers-ranked-by-ceo-to-worker-pay-ratios-2/
(Article may require a subscription.)
#healthplans #compensation
https://www.modernhealthcare.com/insurance/unitedhealth-cigna-ceo-compensation-2024
Wakely Explores Brainwood Case
As I told you, the Supreme Court heard oral arguments on whether preventive services would continue to be mandated and as free services. The Supreme Court appears to be leaning toward upholding the mandate. Wakely does a good job of outlining preventive services and the implications of a negative ruling from the court.
#prevention #preventiveservices #aca #obamacare
The Sensitivity Of Drug Tariffs
The Hill does a good job of outlining how drug tariffs are very different than levying them on commodities. While the Trump administration aims to get manufacturing on shore, it is not that simple in drug manufacturing and the article discusses the potential negative repercussions. Among the factors include the likelihood of increases in costs throughout the healthcare system, new restrictions on access, particular concern on generic makers, and further drug shortages.
#tariffs #drugpricing #brands #generics
https://thehill.com/policy/healthcare/5259496-trump-pharmaceutical-tariffs-threat
— Marc S. Ryan
