Elevance Health Reports Fourth Quarter and Full Year 2022 Results

  • Fourth quarter and full year GAAP net income was $3.93 and $24.81 per share
  • Fourth quarter and full year adjusted net income was $5.23* and $29.07* per share
  • Full year operating revenue grew 13.7% year-over-year to $156 billion
  • Full year operating gain grew 12.9% year-over-year to $8.5 billion
  • Medical enrollment increased 2.2 million members year-over-year to 47.5 million members
  • Quarterly dividend increased by 16% to $1.48 per share

INDIANAPOLIS–(BUSINESS WIRE)–$ELV #earnings–Elevance Health, Inc. (NYSE: ELV) reported fourth quarter and full year 2022 results reflecting strong financial performance, including double-digit growth in revenue, operating earnings, and adjusted earnings per share.

“We made considerable progress in our transformation to become a lifetime, trusted health partner in 2022,” said Gail K. Boudreaux, President and CEO. “Through strategic advancements we are making to optimize our health benefits businesses, invest in high growth opportunities, and accelerate capabilities and services, we are delivering on our commitments to our communities and all of our stakeholders. Additionally, we look forward to welcoming Blue Cross and Blue Shield of Louisiana to Elevance Health to further this commitment within a 15th Blue state. Last year marked the fifth consecutive year in which we met or exceeded our long-term adjusted earnings per share growth target, and we are well-positioned to do it again in 2023.”

The Company expects GAAP net income to be greater than $29.80 per share in 2023, and adjusted net income to be greater than $32.60 per share.

*Refer to GAAP reconciliation tables.

CONSOLIDATED HIGHLIGHTS

Earnings Per Share: GAAP net income was $3.93 per share in the fourth quarter, including net negative adjustment items of $1.30 per share. Adjusted net income was $5.23* per share. Full year GAAP net income was $24.81 per share, including net negative adjustment items of $4.26 per share. Adjusted net income was $29.07* per share.

*Please refer to the GAAP reconciliation tables.

Membership: Medical membership totaled approximately 47.5 million as of December 31, 2022, an increase of 2.2 million, or 4.8 percent year-over-year. Government Business membership increased by 1.1 million year-over-year driven primarily by growth in the Medicaid business and organic growth in Medicare Advantage. Commercial & Specialty Business membership increased by 1.1 million year-over-year, driven primarily by strong sales to fee-based employers.

During the fourth quarter of 2022, medical membership increased by 248 thousand driven by organic growth in Medicaid, which we attribute primarily to the suspension of eligibility recertification, as well as the acquisition of Vivida Health, which added 29 thousand Medicaid members.

Operating Revenue: Operating revenue was $39.7 billion in the fourth quarter of 2022, an increase of $3.6 billion, or 10.1 percent year-over-year. Operating revenue was $155.7 billion for the full year, representing 13.7 percent growth over 2021. The increase in both the quarter and the full year was driven by higher premium revenue due to membership growth in Medicaid, growth in Medicare Advantage, as well as premium rate increases to cover overall cost trends. The increase in operating revenue was further attributable to growth in pharmacy product revenue within CarelonRx driven by growth in consumers served and higher utilization of prescription drugs.

Benefit Expense Ratio: The benefit expense ratio was 89.4 percent in the fourth quarter of 2022, a decrease of 10 basis points year-over-year. The decrease was driven by the realignment of certain quality improvement costs to match recent regulatory clarifications. Excluding the realignment, our benefit expense ratio would have increased, driven by the non-recurrence of favorable out of period adjustment items in Medicaid in the prior year quarter, partially offset by improved medical underwriting performance in our Commercial & Specialty business. The benefit expense ratio was 87.4 percent for the full year of 2022, a decrease of 10 basis points year-over-year. The decrease was primarily driven by the realignment of certain quality improvement costs. Excluding the realignment, the full year benefit expense ratio would have increased, driven by a shift in business mix toward Medicaid, which carries a higher benefit expense ratio than our commercial and Medicare health plans.

Medical claims reserves established at December 31, 2021 developed in line with the Company’s expectations as of the fourth quarter of 2022.

Days in Claims Payable: Days in Claims Payable was 47.7 days as of December 31, 2022, unchanged from September 30, 2022 and an increase of 2.5 days compared to December 31, 2021.

SG&A Expense Ratio: The SG&A expense ratio was 11.5 percent in the fourth quarter of 2022, a decrease of 20 basis points from 11.7 percent in the fourth quarter of 2021. For the full year of 2022, the SG&A expense ratio was 11.4 percent, a decrease of 20 basis points from 11.6 percent in 2021. The decrease for both the quarter and the full year was primarily driven by operating expense leverage associated with growth in operating revenue and lower business optimization charges taken in 2022 as compared to 2021, partially offset by increased spend to support growth in operations and the realignment of certain quality improvement expenses previously reported in benefit expense in the prior year periods.

Operating Cash Flow: Operating cash flow was a use of $1.5 billion, or (1.6) times net income in the fourth quarter of 2022, a decrease of $3.2 billion as compared to the prior year quarter. The year-on-year decrease was driven by the early receipt of premium payments from the Centers for Medicare and Medicaid in third quarter of 2022, which were received during the fourth quarter in 2021. For the full year 2022, operating cash flow was $8.4 billion, or 1.4 times net income.

Share Repurchase Program: During the fourth quarter of 2022, the Company repurchased 1.1 million shares of its common stock for $567 million, at a weighted average price of $497.24. For the full year of 2022, the Company repurchased 4.8 million shares of its common stock for $2.3 billion, at a weighted average price of $478.99. As of December 31, 2022, the Company had approximately $1.9 billion of Board-approved share repurchase authorization remaining.

On January 24, 2023, our Audit Committee, pursuant to authorization granted by the Board of Directors, authorized a $5.0 billion increase to the common stock repurchase program. The Company intends to utilize this authorization over a multi-year period, subject to market and industry conditions.

Cash Dividend: During the fourth quarter of 2022, the Company paid a quarterly dividend of $1.28 per share, representing a distribution of cash totaling $305 million.

On January 24, 2023, the Audit Committee of the Company’s Board of Directors declared a first quarter 2023 dividend to shareholders of $1.48 per share, an increase of 16 percent from the quarterly dividend payment in the fourth quarter. On an annualized basis, the new quarterly dividend equates to $5.92 per share. The first quarter dividend is payable on March 24, 2023, to shareholders of record at the close of business on March 10, 2023.

Investment Portfolio & Capital Position: During the fourth quarter of 2022, the Company recorded net losses of $111 million. During the fourth quarter of 2021, the Company recorded net gains of $211 million. These amounts are excluded from adjusted earnings per share.

As of December 31, 2022, the Company’s net unrealized loss position in the investment portfolio was $2.3 billion, consisting primarily of fixed maturity securities. As of December 31, 2022, cash and investments at the parent company totaled approximately $1.2 billion.

REPORTABLE SEGMENTS

Elevance Health has four reportable segments: Commercial & Specialty Business (comprised of Individual, Group risk-based, Group fee-based, and BlueCard businesses); Government Business (comprised of the Medicaid, Medicare, and Federal Health Products & Services businesses); CarelonRx (formerly IngenioRx); and Other (comprised of the Carelon companies, formerly known as our Diversified Business Group, and corporate expenses not allocated to our other reportable segments).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elevance Health, Inc.

 

 

Reportable Segment Highlights

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Three Months Ended December 31

 

Twelve Months Ended December 31

 

 

 

 

2022

 

2021

 

Change

 

2022

 

2021

 

Change

 

 

Operating Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Specialty Business

 

$

10,350

 

 

$

9,905

 

 

4.5

%

 

$

41,674

 

 

$

38,809

 

 

7.4

%

 

 

Government Business

 

 

24,646

 

 

 

21,912

 

 

12.5

%

 

 

96,810

 

 

 

82,919

 

 

16.8

%

 

 

CarelonRx

 

 

7,523

 

 

 

6,801

 

 

10.6

%

 

 

28,526

 

 

 

25,431

 

 

12.2

%

 

 

Other

 

 

3,410

 

 

 

2,693

 

 

26.6

%

 

 

13,294

 

 

 

10,250

 

 

29.7

%

 

 

Eliminations

 

 

(6,262

)

 

 

(5,293

)

 

18.3

%

 

 

(24,644

)

 

 

(20,466

)

 

20.4

%

 

 

Total Operating Revenue1

 

$

39,667

 

 

$

36,018

 

 

10.1

%

 

$

155,660

 

 

$

136,943

 

 

13.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Gain (Loss)2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Specialty Business

 

$

260

 

 

$

74

 

 

251.4

%

 

$

2,933

 

 

$

2,753

 

 

6.5

%

 

 

Government Business

 

 

644

 

 

 

748

 

 

(13.9

)%

 

 

3,297

 

 

 

3,061

 

 

7.7

%

 

 

CarelonRx

 

 

475

 

 

 

427

 

 

11.2

%

 

 

1,868

 

 

 

1,684

 

 

10.9

%

 

 

Other

 

 

(11

)

 

 

(61

)

 

NM

 

 

 

354

 

 

 

(9

)

 

NM

 

 

 

Total Operating Gain1

 

$

1,368

 

 

$

1,188

 

 

15.2

%

 

$

8,452

 

 

$

7,489

 

 

12.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Specialty Business

 

 

2.5

%

 

 

0.7

%

 

180 bp

 

 

7.0

%

 

 

7.1

%

 

(10) bp

 

 

Government Business

 

 

2.6

%

 

 

3.4

%

 

(80) bp

 

 

3.4

%

 

 

3.7

%

 

(30) bp

 

 

CarelonRx

 

 

6.3

%

 

 

6.3

%

 

— bp

 

 

6.5

%

 

 

6.6

%

 

(10) bp

 

 

Total Operating Margin1

 

 

3.4

%

 

 

3.3

%

 

10 bp

 

 

5.4

%

 

 

5.5

%

 

(10) bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

Operating gain for the three and twelve months ended December 31, 2022 included $39 of charges related to business optimization plans; including $20 for Commercial & Specialty Business; $16 for the Government Business; and $3 for the Other segment. Operating gain for the three and twelve months ended December 31, 2021 included $187 of charges related to business optimization plans; including $106 for Commercial & Specialty Business; $47 for the Government Business; $2 for CarelonRx; and $32 for the Other segment.

Commercial & Specialty Business: Operating gain in the Commercial & Specialty Business segment totaled $260 million in the fourth quarter of 2022, an increase of $186 million from $74 million in the fourth quarter of 2021. The increase was primarily driven by improved medical underwriting performance in our commercial risk-based business and lower business optimization expenses in the fourth quarter of 2022 as compared to the fourth quarter of 2021.

Government Business: Operating gain in the Government Business segment was $644 million in the fourth quarter of 2022, a decrease of $104 million from $748 million in the fourth quarter of 2021. The decrease was primarily driven by the non-recurrence of certain favorable out of period rate actions in Medicaid in the prior year quarter partially offset by increased gross profit in our Medicare health plans and lower business optimization expenses in the fourth quarter of 2022 as compared to the fourth quarter of 2021.

CarelonRx: Operating gain was $475 million in the fourth quarter of 2022, an increase of $48 million from $427 million in the fourth quarter of 2021. The increase was driven by higher prescription volumes associated with growth in integrated medical and standalone pharmacy customers.

Other: The Company reported an operating loss of $11 million in the Other segment for the fourth quarter of 2022, an improvement of $50 million from an operating loss of $61 million in the prior year quarter, driven by growth in Carelon’s affiliated and unaffiliated earnings.

Basis of Presentation

  1. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and selling, general and administrative expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
  2. Operating margin is defined as operating gain divided by operating revenue.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s fourth quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

888-947-9963 (Domestic)

800-396-1242 (Domestic Replay)

312-470-0178 (International)

203-369-3272 (International Replay)

The access code for today’s conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on February 24, 2023. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.

About Elevance Health, Inc.

Elevance Health is a lifetime, trusted health partner fueled by its purpose to improve the health of humanity. The company supports consumers, families, and communities across the entire care journey – connecting them to the care, support, and resources they need to lead healthier lives. Elevance Health’s companies serve approximately 119 million people through a diverse portfolio of industry-leading medical, digital, pharmacy, behavioral, clinical, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on Twitter and Elevance Health on LinkedIn.

 

Elevance Health, Inc.

Membership Summary

(Unaudited and in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

Medical Membership

December 31,

2022

 

December 31,

2021

 

September 30,

2022

 

December 31,

2021

 

September 30,

2022

Commercial & Specialty Business

 

 

 

 

 

 

 

 

 

Individual

789

 

759

 

800

 

4.0

%

 

(1.4

)%

Group Risk-Based

3,988

 

4,006

 

3,988

 

(0.4

)%

 

%

Commercial Risk-Based

4,777

 

4,765

 

4,788

 

0.3

%

 

(0.2

)%

BlueCard®

6,462

 

6,178

 

6,453

 

4.6

%

 

0.1

%

Group Fee-Based

20,174

 

19,395

 

20,184

 

4.0

%

 

%

Commercial Fee-Based

26,636

 

25,573

 

26,637

 

4.2

%

 

%

Total Commercial & Specialty Business

31,413

 

30,338

 

31,425

 

3.5

%

 

%

Government Business

 

 

 

 

 

 

 

 

 

Medicare Advantage

1,977

 

1,859

 

1,969

 

6.3

%

 

0.4

%

Medicare Supplement

947

 

952

 

945

 

(0.5

)%

 

0.2

%

Total Medicare

2,924

 

2,811

 

2,914

 

4.0

%

 

0.3

%

Medicaid

11,571

 

10,600

 

11,319

 

9.2

%

 

2.2

%

Federal Employees Health Benefits

1,623

 

1,625

 

1,625

 

(0.1

)%

 

(0.1

)%

Total Government Business

16,118

 

15,036

 

15,858

 

7.2

%

 

1.6

%

Total Medical Membership

47,531

 

45,374

 

47,283

 

4.8

%

 

0.5

%

Other Membership

 

 

 

 

 

 

 

 

 

Life and Disability Members

4,834

 

4,782

 

4,796

 

1.1

%

 

0.8

%

Dental Members

6,692

 

6,674

 

6,655

 

0.3

%

 

0.6

%

Dental Administration Members

1,586

 

1,491

 

1,577

 

6.4

%

 

0.6

%

Vision Members

9,813

 

8,031

 

9,628

 

22.2

%

 

1.9

%

Medicare Part D Standalone Members

271

 

438

 

274

 

(38.1

)%

 

(1.1

)%

 

Elevance Health, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

(In millions, except per share data)

 

Three Months Ended

December 31

 

 

 

 

2022

 

2021

 

Change

Revenues

 

 

 

 

 

 

Premiums

 

$

33,646

 

 

$

30,769

 

 

9.4

%

Product revenue

 

 

4,137

 

 

 

3,525

 

 

17.4

%

Administrative fees and other revenue

 

 

1,884

 

 

 

1,724

 

 

9.3

%

Total operating revenue

 

 

39,667

 

 

 

36,018

 

 

10.1

%

Net investment income

 

 

373

 

 

 

352

 

 

6.0

%

Net (losses) gains on financial instruments

 

 

(111

)

 

 

211

 

 

(152.6

)%

 

 

 

 

 

 

 

Total revenues

 

 

39,929

 

 

 

36,581

 

 

9.2

%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Benefit expense

 

 

30,091

 

 

 

27,538

 

 

9.3

%

Cost of products sold

 

 

3,646

 

 

 

3,070

 

 

18.8

%

Selling, general and administrative expense

 

 

4,562

 

 

 

4,222

 

 

8.1

%

Interest expense

 

 

229

 

 

 

200

 

 

14.5

%

Amortization of other intangible assets

 

 

247

 

 

 

135

 

 

83.0

%

Loss on extinguishment of debt

 

 

 

 

 

16

 

 

(100.0

)%

 

 

 

 

 

 

 

Total expenses

 

 

38,775

 

 

 

35,181

 

 

10.2

%

 

 

 

 

 

 

 

Income before income tax expense

 

 

1,154

 

 

 

1,400

 

 

(17.6

)%

 

 

 

 

 

 

 

Income tax expense

 

 

193

 

 

 

275

 

 

(29.8

)%

 

 

 

 

 

 

 

Net income

 

 

961

 

 

 

1,125

 

 

(14.6

)%

 

 

 

 

 

 

 

Net (income) loss attributable to noncontrolling interests

 

 

(12

)

 

 

12

 

 

NM

 

 

 

 

 

 

 

 

Shareholders’ net income

 

$

949

 

 

$

1,137

 

 

(16.5

)%

 

 

 

 

 

 

 

Shareholders’ net income per diluted share

 

$

3.93

 

 

$

4.63

 

 

(15.1

)%

 

 

 

 

 

 

 

Diluted shares

 

 

241.2

 

 

 

245.5

 

 

(1.8

)%

 

 

 

 

 

 

 

Benefit expense as a percentage of premiums

 

 

89.4

%

 

 

89.5

%

 

(10) bp

Selling, general and administrative expense as a percentage of total operating revenue

 

 

11.5

%

 

 

11.7

%

 

(20) bp

Income before income tax expense as a percentage of total revenue

 

 

2.9

%

 

 

3.8

%

 

(90) bp

 

“NM” = calculation not meaningful

 

Elevance Health, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

(In millions, except per share data)

 

Twelve Months Ended

December 31

 

 

 

 

2022

 

2021

 

Change

Revenues

 

 

 

 

 

 

Premiums

 

$

133,229

 

 

$

117,373

 

 

13.5

%

Product revenue

 

 

14,978

 

 

 

12,657

 

 

18.3

%

Administrative fees and other revenue

 

 

7,453

 

 

 

6,913

 

 

7.8

%

Total operating revenue

 

 

155,660

 

 

 

136,943

 

 

13.7

%

Net investment income

 

 

1,485

 

 

 

1,378

 

 

7.8

%

Net (losses) gains on financial instruments

 

 

(550

)

 

 

318

 

 

(273.0

)%

 

 

 

 

 

 

 

Total revenues

 

 

156,595

 

 

 

138,639

 

 

13.0

%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Benefit expense

 

 

116,487

 

 

 

102,645

 

 

13.5

%

Cost of products sold

 

 

13,035

 

 

 

10,895

 

 

19.6

%

Selling, general and administrative expense

 

 

17,686

 

 

 

15,914

 

 

11.1

%

Interest expense

 

 

851

 

 

 

798

 

 

6.6

%

Amortization of other intangible assets

 

 

767

 

 

 

441

 

 

73.9

%

Loss on extinguishment of debt

 

 

 

 

 

21

 

 

(100.0

)%

 

 

 

 

 

 

 

Total expenses

 

 

148,826

 

 

 

130,714

 

 

13.9

%

 

 

 

 

 

 

 

Income before income tax expense

 

 

7,769

 

 

 

7,925

 

 

(2.0

)%

 

 

 

 

 

 

 

Income tax expense

 

 

1,750

 

 

 

1,830

 

 

(4.4

)%

 

 

 

 

 

 

 

Net income

 

 

6,019

 

 

 

6,095

 

 

(1.2

)%

 

 

 

 

 

 

 

Net loss attributable to noncontrolling interests

 

 

6

 

 

 

9

 

 

NM

 

 

 

 

 

 

 

 

Shareholders’ net income

 

$

6,025

 

 

$

6,104

 

 

(1.3

)%

 

 

 

 

 

 

 

Shareholders’ net income per diluted share

 

$

24.81

 

 

$

24.73

 

 

0.3

%

 

 

 

 

 

 

 

Diluted shares

 

 

242.8

 

 

 

246.8

 

 

(1.6

)%

 

 

 

 

 

 

 

Benefit expense as a percentage of premiums

 

 

87.4

%

 

 

87.5

%

 

(10) bp

Selling, general and administrative expense as a percentage of total operating revenue

 

 

11.4

%

 

 

11.6

%

 

(20) bp

Income before income tax expense as a percentage of total revenue

 

 

5.0

%

 

 

5.7

%

 

(70) bp

 

“NM” = calculation not meaningful

 

Elevance Health, Inc.

Consolidated Balance Sheets

 

(In millions)

December 31,
2022

 

December 31,
2021

Assets

(Unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

7,387

 

 

$

4,880

 

Fixed maturity securities

 

25,952

 

 

 

26,267

 

Equity securities

 

953

 

 

 

1,881

 

Premium receivables

 

7,083

 

 

 

5,681

 

Self-funded receivables

 

4,663

 

 

 

4,010

 

Other receivables

 

4,298

 

 

 

3,749

 

Other current assets

 

5,281

 

 

 

4,654

 

Total current assets

 

55,617

 

 

 

51,122

 

 

 

 

 

Long-term investments:

 

 

 

Fixed maturity securities

 

752

 

 

 

632

 

Other invested assets

 

5,685

 

 

 

5,225

 

Property and equipment, net

 

4,316

 

 

 

3,919

 

Goodwill

 

24,383

 

 

 

24,228

 

Other intangible assets

 

10,315

 

 

 

10,615

 

Other noncurrent assets

 

1,704

 

 

 

1,719

 

Total assets

$

102,772

 

 

$

97,460

 

 

 

 

 

Liabilities and equity

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Medical claims payable

$

15,596

 

 

$

13,518

 

Other policyholder liabilities

 

6,505

 

 

 

5,521

 

Unearned income

 

1,112

 

 

 

1,153

 

Accounts payable and accrued expenses

 

5,035

 

 

 

4,970

 

Short-term borrowings

 

265

 

 

 

275

 

Current portion of long-term debt

 

1,500

 

 

 

1,599

 

Other current liabilities

 

9,683

 

 

 

7,849

 

Total current liabilities

 

39,696

 

 

 

34,885

 

 

 

 

 

Long-term debt, less current portion

 

22,349

 

 

 

21,157

 

Reserves for future policy benefits

 

737

 

 

 

802

 

Deferred tax liabilities, net

 

2,034

 

 

 

2,805

 

Other noncurrent liabilities

 

1,562

 

 

 

1,683

 

Total liabilities

 

66,378

 

 

 

61,332

 

 

 

 

 

Shareholders’ equity

 

 

 

Common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

9,084

 

 

 

9,148

 

Retained earnings

 

29,724

 

 

 

27,088

 

Accumulated other comprehensive loss

 

(2,503

)

 

 

(178

)

Total shareholders’ equity

 

36,307

 

 

 

36,060

 

Noncontrolling interests

 

87

 

 

 

68

 

Total equity

 

36,394

 

 

 

36,128

 

Total liabilities and equity

$

102,772

 

 

$

97,460

 

 

Elevance Health, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

(In millions)

Twelve Months Ended December 31

 

2022

 

2021

Operating activities

 

 

 

Net income

$

6,019

 

 

$

6,095

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Net losses (gains) on financial instruments

 

550

 

 

 

(318

)

Equity in net earnings of other invested assets

 

(293

)

 

 

(562

)

Depreciation and amortization

 

1,675

 

 

 

1,302

 

Deferred income taxes

 

(76

)

 

 

326

 

Impairment of property and equipment

 

7

 

 

 

73

 

Share-based compensation

 

264

 

 

 

255

 

Changes in operating assets and liabilities:

 

 

 

Receivables, net

 

(2,510

)

 

 

(2,138

)

Other invested assets

 

11

 

 

 

(70

)

Other assets

 

120

 

 

 

37

 

Policy liabilities

 

2,826

 

 

 

2,597

 

Unearned income

 

(42

)

 

 

(113

)

Accounts payable and other liabilities

 

252

 

 

 

719

 

Income taxes

 

(338

)

 

 

140

 

Other, net

 

(66

)

 

 

21

 

Net cash provided by operating activities

 

8,399

 

 

 

8,364

 

 

 

 

 

Investing activities

 

 

 

Purchases of investments

 

(24,946

)

 

 

(18,669

)

Proceeds from sale of investments

 

11,988

 

 

 

10,269

 

Maturities, calls and redemptions from investments

 

10,620

 

 

 

4,344

 

Changes in securities lending collateral

 

(301

)

 

 

(956

)

Purchases of subsidiaries, net of cash acquired

 

(649

)

 

 

(3,476

)

Purchases of property and equipment

 

(1,152

)

 

 

(1,087

)

Other, net

 

(120

)

 

 

(63

)

Net cash used in investing activities

 

(4,560

)

 

 

(9,638

)

 

 

 

 

Financing activities

 

 

 

Net (repayments of) proceeds from commercial paper borrowings

 

(300

)

 

 

50

 

Net proceeds from (repayments of) short-term borrowings

 

(10

)

 

 

275

 

Net proceeds from long-term borrowings

 

1,172

 

 

 

2,394

 

Changes in securities lending payable

 

302

 

 

 

956

 

Changes in bank overdrafts

 

933

 

 

 

(376

)

Repurchase and retirement of common stock

 

(2,316

)

 

 

(1,900

)

Cash dividends

 

(1,229

)

 

 

(1,104

)

Proceeds from issuance of common stock under employee stock plans

 

182

 

 

 

203

 

Taxes paid through withholding of common stock under employee stock plans

 

(93

)

 

 

(102

)

Other, net

 

41

 

 

 

27

 

Net cash (used in) provided by financing activities

 

(1,318

)

 

 

423

 

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

 

(14

)

 

 

(10

)

 

 

 

 

Change in cash and cash equivalents

 

2,507

 

 

 

(861

)

Cash and cash equivalents at beginning of period

 

4,880

 

 

 

5,741

 

 

 

 

 

Cash and cash equivalents at end of period

$

7,387

 

 

$

4,880

 

 

Elevance Health, Inc.

Reconciliation of Medical Claims Payable

 

 

Years Ended December 31

 

2022

 

2021

 

2020

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Gross medical claims payable, beginning of year

$

13,282

 

 

$

11,135

 

 

$

8,647

 

Ceded medical claims payable, beginning of year

 

(21

)

 

 

(46

)

 

 

(33

)

Net medical claims payable, beginning of year

 

13,261

 

 

 

11,089

 

 

 

8,614

 

 

 

 

 

 

 

Business combinations and purchase adjustments

 

133

 

 

 

420

 

 

 

339

 

 

 

 

 

 

 

Net incurred medical claims:

 

 

 

 

 

Current year

 

113,414

 

 

 

100,440

 

 

 

85,094

 

Prior years redundancies(1)

 

(869

)

 

 

(1,703

)

 

 

(637

)

Total net incurred medical claims

 

112,545

 

 

 

98,737

 

 

 

84,457

 

 

 

 

 

 

 

Net payments attributable to:

 

 

 

 

 

Current year medical claims

 

98,997

 

 

 

88,156

 

 

 

74,629

 

Prior years medical claims

 

11,600

 

 

 

8,829

 

 

 

7,692

 

Total net payments

 

110,597

 

 

 

96,985

 

 

 

82,321

 

 

 

 

 

 

 

Net medical claims payable, end of year

 

15,342

 

 

 

13,261

 

 

 

11,089

 

Ceded medical claims payable, end of year

 

6

 

 

 

21

 

 

 

46

 

Gross medical claims payable, end of year*

$

15,348

 

 

$

13,282

 

 

$

11,135

 

 

 

 

 

 

 

Current year medical claims paid as a percentage of current year net incurred medical claims

 

87.3

%

 

 

87.8

%

 

 

87.7

%

 

 

 

 

 

 

Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year

 

7.0

%

 

 

18.1

%

 

 

8.0

%

 

 

 

 

 

 

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims

 

0.9

%

 

 

2.0

%

 

 

0.8

%

Contacts

Elevance Health Contacts:
Investor Relations
Stephen Tanal
[email protected]

Media
Leslie Porras
[email protected]

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