ELV · 10-Q · 2026Q2

Elevance Health, Inc.

Filed 2026-07-15 · Healthcare · View original filing on EDGAR

Ranked Events

• Medicare Risk Adjustment / RADVImportance 72 · Surprise 74
  Elevance notes CMS plans to substantially increase the scale and pace of Risk Adjustment Data Validation (RADV) audits (announced May 2025) and warns that changes to risk-adjustment auditing could increase financial…
• Operating Gain DeclineImportance 70 · Surprise 56
  Total operating gain decreased materially — down 27.3% for the three months and 31.2% for the six months ended June 30, 2026 — with total operating gain of $1,763 million (three months) and $3,849 million (six months).…
• IRA Drug & Subsidy ImpactsImportance 69 · Surprise 76
  The Inflation Reduction Act (IRA) of 2022 contains drug pricing and tax provisions (including limited Medicare drug price negotiation beginning in 2026, Medicare Part D redesign, inflation-based manufacturer rebates,…
• Membership / Enrollment TrendsImportance 68 · Surprise 58
  Total medical membership declined 1.5% from June 30, 2025 to June 30, 2026, driven primarily by Medicaid attrition (8,358k vs 8,733k, down 375k or 4.3%) and declines in Medicare lines. Medicare Advantage membership…
• OBBBA Federal ChangesImportance 65 · Surprise 60
  The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, contains multiple provisions affecting Medicaid reverifications, work/community engagement requirements for ACA Medicaid expansion populations, changes to…
• CarelonRx Outsourcing and Volume/Cost TrendsImportance 64 · Surprise 42
  CarelonRx provides comprehensive pharmacy services (home delivery, specialty, claims adjudication, formulary management, infusion/injectable therapies) to affiliated and unaffiliated customers and delegates certain…
• Transformation ProgramImportance 63 · Surprise 70
  In Q1 2026 Elevance initiated a 2026–2027 Operating Model Transformation Program to streamline decision-making, simplify organizational structures, modernize IT platforms and increase use of advanced technologies,…
• Operating Cash Flow TrendsImportance 63 · Surprise 64
  Operating cash flow (net cash provided by operating activities) improved to $6,245 million for the six months ended June 30, 2026, from $3,071 million for the six months ended June 30, 2025, an increase of $3,174…
• PBM Reform LegislationImportance 59 · Surprise 60
  The Consolidated Appropriations Act of 2026 (enacted February 2026) includes pharmacy benefit manager (PBM) reforms that require PBMs to remit all rebates, fees (other than bona fide service fees) and other…
• Accrued Legal and RegulatoryImportance 59 · Surprise 42
  Management attributes the primary driver of the six‑month net income decline to a loss contingency accrual for the company's best estimate of potential exposure related to the resubmission of certain historical…
• Medicare Advantage Risk Adjustment ContingencyImportance 59 · Surprise 60
  The Company recorded a loss contingency accrual in the six months ended June 30, 2026 for the best estimate of identified potential exposure related to the resubmission of certain historical Medicare Advantage risk…
• Mental Health Parity RegulationsImportance 56 · Surprise 42
  The Tri-Agencies issued final mental health parity regulations in September 2024 that require health plans to make administrative and operational changes to comply; some provisions became effective January 1, 2025.…
• Liquidity and Cash PositionImportance 54 · Surprise 14
  Elevance reported consolidated cash, cash equivalents and investments in fixed maturity and equity securities of $38,773 at June 30, 2026, an increase of $1,537 since December 31, 2025, driven primarily by increased…
• Regulatory Capital and Dividend RestrictionsImportance 52 · Surprise 42
  Many Elevance subsidiaries are subject to state insurance regulation that can restrict the timing and amount of dividends and other distributions to parent companies, and statutory (regulatory) accounting practices…
• Operating Expense TrendsImportance 52 · Surprise 42
  Operating expense increased meaningfully in the periods presented, driven by targeted investments to support workforce and technology adoption, increased expenses to address regulatory matters and higher premium tax…
• Medical Cost TrendsImportance 50 · Surprise 24
  Elevance cites elevated medical cost trends driven by utilization and unit cost increases across provider types, with specific pressure from specialty pharmaceuticals and new indications for existing drugs. The company…
• Shareholders' Net Income and EPS DeclineImportance 50 · Surprise 58
  Shareholders’ net income was $3,227 million for the six months ended June 30, 2026, a decrease of $699 million, or 17.8%, from $3,926 million for the six months ended June 30, 2025. Fully-diluted EPS declined to $14.73…
• Interest Rate and Refinancing ExposureImportance 48 · Surprise 6
  Elevance periodically accesses capital markets and may issue long-term debt (Notes) to refinance debt, finance acquisitions or repurchase shares, and some Notes may include call or put features tied to…
• Outstanding Indebtedness and RatingsImportance 48 · Surprise 14
  Elevance reports and monitors its consolidated debt-to-capital ratio as a key leverage metric; the ratio was 40.8% at June 30, 2026 compared with 42.1% at December 31, 2025. The company issues long-term Notes…
• Net Losses on Financial InstrumentsImportance 45 · Surprise 64
  Net losses on financial instruments decreased to a net loss of $56 million for the three months ended June 30, 2026 from $131 million in the prior-year quarter, a 57.3% improvement. The MD&A attributes the decrease to…

Revenue by Product (in millions)