Elevance Health, Inc.
Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates in four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to individual, employer group risk-based and fee-based, BlueCard, Medicare, Medicaid, and FEP members; health products; a broad array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, and supplemental health insurance benefits. The company also operates in the pharmacy services business; and markets and offers pharmacy services, including home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services, as well as infusion services and injectable therapies through ambulatory infusion centers. In addition, it provides healthcare related services and capabilities, including specialty care enablement and utilization management support for specialized clinical domains; behavioral health and comprehensive care management services; palliative care services and management; virtual care; and payment integrity, subrogation, clinical data exchange through its HealthOS platform, research and data, reporting and clinical analytics, information technology, and business process support services, as well as manages home health, post-acute institutional management, and durable medical equipment costs; and supports plans in managing home and community-based services. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brands. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is based in Indianapolis, Indiana.
What does it do?
Elevance Health is one of the largest health insurance companies in the United States, covering roughly 45 million people. If you get health insurance through your job, there's a real chance your plan is managed by Elevance or one of its Blue Cross Blue Shield affiliates. Think of them as the middleman between you and your doctor — they collect monthly premiums from members and employers, then pay out claims when people actually use healthcare. They also run a pharmacy benefits business called CarelonRx and a growing healthcare services arm called Carelon.
Elevance is a bellwether for the entire U.S. health insurance industry, meaning when it struggles, investors pay attention across the whole sector. Right now, the industry is under intense pressure because people are using healthcare more than expected after the pandemic — and that's squeezing profit margins across the board. Elevance also has huge exposure to Medicaid, the government program for low-income Americans, which is going through a major shake-up as states cut enrollment rolls for the first time in years.
How does it make money?
Elevance makes money primarily by collecting premiums — the monthly fees people or employers pay for health coverage — and then paying out less in medical claims than it collects. In 2024, it brought in $197.6 billion in revenue, up from $175.2 billion the prior year, which is a 13% jump. The bulk of that comes from its Health Benefits segment, which covers commercial, Medicare, and Medicaid plans. Its newer Carelon and CarelonRx divisions add revenue by providing pharmacy management and healthcare services, helping the company capture more of the healthcare dollar rather than just acting as a payer.
Why do investors care?
The long-term case for Elevance rests on the idea that America's aging population will keep driving demand for health coverage, especially Medicare Advantage — the privatized version of Medicare for seniors. Elevance is also trying to become more than just an insurer by building out Carelon, which provides actual healthcare services, giving it new revenue streams with potentially better profit margins. For this story to work, the company needs to get its medical costs under control, win back Medicaid members lost during state redeterminations, and successfully scale its services business. If those pieces click, there's a credible path back to stronger earnings growth.
Deep Dive
MemberA full investor briefing on Elevance Health, Inc. — history, leadership, risks, and outlook.