Elevance Health Reports $48.8 Billion Revenue, 15.4% Increase in Q1 2025

Elevance Health, Inc. reported its financial results for the first quarter of 2025, revealing a total operating revenue of $48.8 billion, a 15.4% increase from $42.3 billion in the same period last year. The growth was primarily driven by premium rate increases in the Health Benefits segment, expansion in Medicare Advantage and Individual ACA membership, and increased product revenue from CarelonRx. However, net income for the quarter was $2.2 billion, a decrease of 2.9% compared to $2.2 billion in Q1 2024, attributed to a decline in operating gain within the Health Benefits segment and increased net losses on financial instruments.

The company’s total assets rose to $119.7 billion as of March 31, 2025, up from $116.9 billion at the end of 2024. This increase was supported by a rise in premium receivables and other current assets. Elevance Health's medical membership stood at approximately 45.8 million, reflecting a slight decline of 0.5% from the previous year, primarily due to attrition in Medicaid membership amid eligibility redeterminations. The company also reported a 14.2% increase in Individual membership, while Medicare Advantage membership grew by 11.8%.

Strategically, Elevance Health completed several acquisitions in late 2024, including Centers Plan for Healthy Living and CareBridge, aimed at enhancing its Health Benefits segment and expanding its capabilities in managing long-term care for Medicaid and dual-eligible members. The company also divested its life and disability businesses, resulting in a gain of $201 million. These strategic moves align with Elevance's focus on improving care management and expanding its service offerings.

Operationally, the company reported a benefit expense of $35.3 billion, which increased by 15.6% year-over-year, reflecting higher medical cost trends across all lines of business. The operating expense ratio improved to 10.9% from 11.6% in the prior year, indicating effective cost management despite rising expenses. Elevance Health's cash and cash equivalents at the end of the quarter totaled $7.5 billion, down from $8.3 billion at the end of 2024, primarily due to cash used for stock repurchases and debt repayments.

Looking ahead, Elevance Health anticipates continued growth in its Public Exchange membership and is exploring expansion opportunities in additional service areas. The company remains focused on managing medical cost trends and enhancing operational efficiencies to mitigate the impact of regulatory changes and market conditions on its financial performance.