(Adds background, profit forecast, share move in paragraphs 3-6)
By Amina Niasse and Pratik Jain
NEW YORK, June 12 (Reuters) - Elevance Health executive Peter Haytaian said on Wednesday that a decrease in the number of people eligible for its Medicaid plans this year, as well as changes the company made in where it operates those plans, shifted its balance of healthy and sick members.
Speaking at the Goldman Sachs Global Healthcare Conference, Haytaian said the company is seeing improved profitability for its Medicare business. Insurers have seen unanticipated use of healthcare plans by enrollees after the COVID-19 pandemic.
The Indianapolis-based insurer slightly raised its annual earnings forecast in April over higher premiums from commercial insurance plans that helped keep medical costs in check.
The company earlier on Wednesday said it continues to expect annual adjusted profit to be greater than $37.20 per share. Shares of Elevance fell about 1.5% in afternoon trading to $529.12.
Commercial plans and government-backed Medicaid health plans, which cover medical costs for people with limited income, comprise the majority of Elevance's business.
Compared to UnitedHealth and Humana, Elevance has a smaller presence in the government-backed Medicare Advantage market for older adults.
Its rivals in recent quarters have struggled with elevated medical costs, as demand from older adults for medical care remains robust.
(Reporting by Amina Niasse; Editing by Caroline Humer and Bill Berkrot)
((amina.niasse@thomsonreuters.com;))
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