036752202 Filings — Elevance Health, Inc. - FilingSpy
036752202
Elevance Health, Inc.
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One of the largest health insurers in the United States, Elevance Health provides medical, dental, and vision coverage to families, employers, and people in government Medicare and Medicaid programs, through its Blue Cross and Blue Shield plans in 14 states and its Wellpoint, Carelon, and MMM brands. Its roots reach back to regional Blue Cross plans in the 1940s, and it was reshaped by the 2004 merger of Anthem and WellPoint. Renamed in 2022, its name blends "elevate" and "advance," while its Carelon services brand takes its "lon" from a word meaning "full and complete."
Q2 2026 net income fell 16.8% to $1.76B as medical costs and operating investments rose
Medical costs and operating investments cut quarterly profit. rose 0.9% to $50.2B and fell 16.8% to $8.00 as the increased and the Transformation Program lifted costs. The company carries higher costs into a year already facing a $183M revenue reduction from Star Ratings.
Key takeaways
fell 19.2% to $1,764M and fell 16.8% to $8.00, with down 34.2% to $2,086M from the prior-year quarter.
rose 0.9% to $50.2B and 2.6% to $50.2B, driven by premium rate increases and product revenue growth, partially offset by a 1.5% decline in total medical membership.
The increased 80 to 89.7% in the MD&A, reflecting elevated medical cost trends in Medicaid and Medicare, partially offset by improved Individual ACA performance.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income fell 16.1% to $1.46B on higher medical costs, operating investments, and a Medicare risk-adjustment accrual.
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Total operating rose 0.8% to $49.8B, driven by premium rate increases and product revenue growth, partially offset by a 1.5% decline in total medical membership.
Operating expense rose 11.0% to $5.5B and the increased 100 to 11.1%, driven by workforce and technology investments, regulatory expenses, and the Transformation Program.
rose 326.0% to $4,332M and rose 399.0% to $4,097M from a year earlier, a move driven by favorable impacts rather than underlying earnings.
The company maintained $38.8B in cash and investments and its improved to 40.8% from 42.1% at year-end 2025.
What changed
The Q1 2026 flag on the asked if the 86.8% level would normalize; it increased 80 to 89.7% in Q2, not a normalization.
The Q1 flag on operating gain after a 2.7% decline to $2.2B is carried into the MD&A as lower operating gain in Health Benefits driving the drop, though the figure is not separately stated this quarter.
The $183M 2026 Medicare Advantage Star Ratings reduction flagged through 2025 and Q1 2026 remains unmitigated in this filing.
Total medical membership decline continued, with Q1 at 45.4M down 0.9% and Q2 MD&A citing a 1.5% decline, extending the attrition trend from FY2025's 45.2M.
trajectory reversed from Q2 2024's $447M and Q1 2025's $1,017M to $4,332M in Q1 2026 and $2,054M in Q2 2025, with the company attributing the Q2 2026 half-year $6.2B to favorable versus $3.1B prior.
What to watch
in Q3 2026 to see if the 89.7% Q2 level normalizes as Medicaid and Medicare rates adjust to cost trends.
operating gain next quarter after the Q2 drag from lower operating gain and the Medicare risk-adjustment accrual.
2026 operating mitigation progress on the $183M Medicare Advantage Star Ratings reduction.
Total medical membership trend as the 1.5% Q2 decline meets any offset from ACA or Medicare Advantage growth.
Shareholders’ decreased 16.1% to $1.46B, primarily due to lower operating gain in and , the latter including a for historical Medicare Advantage risk adjustment data.
The increased 80 to 89.7%, reflecting elevated medical cost trends in Medicaid and Medicare, partially offset by improved Individual ACA performance.
Operating expense rose 11.0% to $5.5B, and the increased 100 to 11.1%, driven by workforce and technology investments, regulatory expenses, and the Transformation Program.
for the first half of 2026 was $6.2B, up from $3.1B in the prior year, primarily due to favorable changes.
The company maintained a strong liquidity position with $38.8B in cash and investments, and its improved to 40.8% from 42.1% at year-end 2025.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of our market risks, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” included in our 2025 Annual Report on Form 10-K. There have been no material changes to any of these risks since December 31, 2025.
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For a discussion of our market risks, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” included in our 2025 Annual Report on Form 10-K. There have been no material changes to any of these risks since December 31, 2025.
For information regarding legal proceedings at June 30, 2026, see the “Litigation and Regulatory Proceedings” and “Other Contingencies” sections of Note 10, “Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quart…
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For information regarding legal proceedings at June 30, 2026, see the “Litigation and Regulatory Proceedings” and “Other Contingencies” sections of Note 10, “Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which information is incorporated herein by reference.
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” of our 2025 Annual Report on Form 10-K, which could materially affect our business, financial condition or…
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In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” of our 2025 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. The risks described in our 2025 Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.
There have been no material changes to the risk factors as disclosed in Part I, Item 1A of our 2025 Annual Report on Form 10-K.
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