Q: What is Elevance Health (ELV) Q2 2024 Earnings Call Transcript Summary?
**Elevance Health (ELV) Q2 2024 Earnings Call Summary**
**Bullish Points:**
1. Adjusted diluted earnings per share of $10.12, reflecting 12% growth year over year.
2. Reaffirmed full-year adjusted diluted earnings per share guidance of at least $37.20, representing 12% growth year over year.
3. Solid membership growth in the individual ACA business.
4. High retention levels and strong new customer acquisition in National accounts.
5. Recent new business wins and reprocurement success in Medicaid.
6. Enterprise weighted average rating increased to four stars in Medicare.
7. Carelon Services delivered robust growth in operating revenue and earnings.
8. Significant opportunity to grow and scale CarelonRx.
9. Operating revenue for Carelon Services grew by over 26% and operating earnings increased by more than 30%.
10. Maintained prudent posture with respect to reserves, with days in claims payable above the long-term target range.
**Bearish Points:**
1. Attrition in Medicaid membership.
2. Increased acuity in Medicaid membership due to attrition of healthier members.
3. Elevated investment costs, notably in CarelonRx, impacting the operating expense ratio.
4. Anticipation of increased second-half utilization in Medicaid, leading to a higher full-year benefit expense ratio.
5. Medicaid utilization reflected higher acuity as expected, with increased utilization across the broader Medicaid population, including in outpatient radiology, durable medical equipment, and some elective procedures.
6. Potential for a short-term disconnect between the timing of rates and the emerging acuity in Medicaid populations.
7. Medicaid margins are expected to compress year over year due to timing mismatch rates relative to acuity and higher acuity associated with the Medicaid membership mix.
8. Medicare margins, while expected to improve in 2024 compared to 2023, will still remain below the long-term target margin range.
9. Unknowns regarding growth expectations for 2025, particularly with recent bids submitted to CMS and awaiting feedback.
10. Larger than typical pull-forward effect driven by increased numbers of Medicaid members losing coverage, causing localized revenue pressure.
For more information about Elevance Health's earnings call, you can read the relevant news: Elevance Health (ELV) Q2 2024 Earnings Call Transcript
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