By Dean Seal


Elevance Health's revenue rose in the third quarter on higher premiums and contributions from its pharmacy benefit manager CarelonRx.

The health insurer and healthcare-services provider, formerly known as Anthem, posted a profit of $1.29 billion, or $5.45 a share, compared with $1.6 billion, or $6.62 a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $8.99 a share. Analysts surveyed by FactSet had been expecting $8.45 a share.

Quarterly revenue rose 7.2% to $42.85 billion, topping analyst forecasts for $42.69 billion, according to FactSet.

Elevance's top line was pushed higher by growth in premium revenue from the health benefits business and higher pharmacy product revenue from CarelonRx, due in part to its acquisition of BioPlus in the first quarter of 2023. Premiums were up 4.6% to $35.26 billion.

Membership rose to 47.3 million, driven by growth in BlueCard, Affordable Care Act health plans and Medicare Advantage membership, largely offset by attrition in Medicaid as eligibility redeterminations resumed, a new competitor entered one of its state Medicaid programs and its employer group risk-based business declined.

The benefit expense ratio, a measure of the proportion of premiums paid out in healthcare costs, improved by 40 basis points to 86.8% due to by premium rate adjustments.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

10-18-23 0641ET