Health Insurance, Pharmacy Benefit Managers
IngenioRx’s 11% Q3 Growth Contributes to Elevance Health Strong Financial Performance
Elevance Health (Elevance) reported third quarter 2022 results reflecting strong financial performance, including double-digit growth in revenue, operating earnings, and adjusted earnings per share.
As a result of stronger than expected results for the first nine months of the year, the company now expects GAAP net income to be greater than $25.33 per share, including approximately $3.62 per share of net unfavorable adjustment items. The company now expects full-year adjusted net income to be greater than $28.95 per share.
Medical membership totaled approximately 47.3 million as of September 30, 2022, an increase of 2.2 million, or 4.9 percent year-over-year. Commercial & Specialty Business membership increased by 1.2 million year-over-year driven by strong sales to fee-based employers.
Government Business membership increased by 1.0 million compared to the prior year quarter, driven primarily by growth in the Medicaid business, the acquisitions of Paramount Advantage and Integra Managed Care, and organic growth in Medicare Advantage.
Operating revenue was $39.6 billion in the third quarter of 2022, an increase of $4.1 billion, or 11.5 percent year-over-year. The benefit expense ratio was 87.2 percent in the third quarter of 2022, a decrease of 50 basis points year-over-year.
IngenioRx third quarter 2022 revenue increased to $7.2 billion from $6.5 billion a year earlier. Nine month revenue increased to $21 billion from $18.6 billion a year earlier.
IngenioRx’s integrated whole health value proposition is driving growth for the business especially in the middle and downmarket. IngenioRx is also focused on up-selling additional products and services including specialty condition management programs, digital adherence programs, and cost relief programs.
Takeaway: The growth in pharmacy product revenue within IngenioRx related to growth in membership and higher utilization of prescription drugs and was a contributor to Elevance’s operating revenue