Elevance Health shares drop amid Medicare payment concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 19 2024
0mins
Should l Buy ELV?
Elevance Health Inc. shares fell 6.72% and hit a 5-day low as major health insurers reacted negatively to recent Medicare payment policy updates.
The Centers for Medicare & Medicaid Services (CMS) proposed a mere 0.09% payment growth for Medicare Advantage in 2027, which translates to over $700 million in additional payments. This announcement has led to significant declines in shares of major health insurers, including Elevance Health, reflecting market unease regarding future profitability in the sector. The proposed updates to the risk adjustment model and drug plan adjustments further exacerbate concerns about operational strategies for insurers.
The implications of these developments suggest a challenging environment for Elevance Health and its peers, as the proposed payment increases are seen as insufficient to support profitability. Investors may need to reassess their positions in light of these policy changes.
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Analyst Views on ELV
Wall Street analysts forecast ELV stock price to rise
15 Analyst Rating
11 Buy
4 Hold
0 Sell
Moderate Buy
Current: 323.050
Low
332.00
Averages
389.07
High
425.00
Current: 323.050
Low
332.00
Averages
389.07
High
425.00
About ELV
Elevance Health, Inc. is a health company. It operates as a health insurer in the United States. The Company operates through four segments: Health Benefits, CarelonRx, Carelon Services and Corporate & Other. The Health Benefits segment offers a comprehensive suite of health plans and services to its Individual, Employer Group risk-based, Employer Group fee-based, BlueCard, Medicare, Medicaid and Federal Employee Program (FEP) members. The Health Benefits segment also offers health products on a full-risk basis. The CarelonRx segment includes its pharmacy services business. CarelonRx markets and offers pharmacy services to its affiliated health plan customers, as well as to external customers outside of the health plans. The Carelon Services segment integrates physical, behavioral, pharmacy, and social services by offering an array of healthcare-related services and capabilities to internal and external customers through its Carelon Health and Carelon Insights businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
