Elevance Anticipates Higher Medicaid Costs in 2026, Shares Decline

Reported about 6 hours ago

Elevance Health reported that it expects elevated medical costs in its Medicaid business to continue into 2026, contributing to a decline in its shares despite a strong third-quarter profit report. The company's CFO indicated that 2026 may be a low point for Medicaid profitability, as increased demand in behavioral health and weight-loss drugs puts pressure on costs. Additionally, uncertainties surrounding the expiration of subsidies from the COVID-19 pandemic further complicate the outlook for patient enrollments and future earnings.

Source: YAHOO

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