Clover Health Investments, Corp.

Ladies and gentlemen, good afternoon and welcome to the Clover Health Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared remarks. At that time, if you wish to ask a question, please press star 1 on your telephone keypad. As a reminder, today's call is being recorded. I would now like to turn the call over to Ryan Schmidt, Investor Relations for Clover Health. Please go ahead.

Good afternoon, everyone. Joining me on our call today is Vivek Garipalli, our CEO, Andrew Toy, our president, and Mark Herbers, who served as our interim CFO during the second quarter. We will discuss the company's second quarter results and answer your questions. This call is being recorded. Before we get started, I would like to remind you that our second quarter earnings materials, including the release, are available on our website at cloverhealth.com. I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties, including expectations about future performance. Chapters that may cause actual results to differ materially from expectations are detailed in our SEC filings, including in the risk factor section of our most recent annual report on Form 10-K and in other SEC filings. Information about non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can be found in the earnings materials available on our website. With that, I will now turn the call over to Vivek.

Thanks, Ryan, and thanks, everyone, for joining us today. We continue to build upon our strong start to the year, with second quarter results proving to be another positive step forward. We remain excited about the continued progress against our goals, as well as the strategies we are laying out for 2023 and beyond. We believe that we can deliver above-average industry growth and improve margins all by needs enabling great primary care at scale via COVID assistance. Let me now cover the highlights from the second quarter before handing it over to Andrew for a more in-depth discussion. Firstly, our Q2 revenue of $847 million was more than double our revenue in the second quarter of last year. Our total lives under corporate management also nearly doubled year over year to over $255,000. We accomplished this while simultaneously slowing the growth of operating expenses. Insurance NCR and non-insurance NCR improved versus the second quarter of 2021 to 92.1% and 106% respectively. Clover Assistant continues to be a differentiator, showing a materially improved insurance MCR for returning members whose PCPs use Clover Assistant versus those who don't. Finally, we've continued to strengthen our leadership team this past quarter and are excited to welcome Scott Weffler as our permanent CFO. Since he's only been with us for a couple of weeks, we've spared him from being on today's call and look forward to introducing him properly during the next set of earnings. In that same vein, I'd like to extend a heartfelt thank you to Mark and the entire Clover team. He has been a trusted partner over the past year and provided us with a laundry of time to bring in an exceptional leader like Scott. Thank you, Mark. With that, let me turn the call over to Andrew.

Thanks, Vivek. I, too, am very pleased with our Q2 results and I'm cautiously optimistic about the second half of the year. I'm excited to report year-over-year revenue growth of 105% and 99% growth in our lives under management. This highlights how the Medicare population values physician choice. Clover Systems' ability to work beyond the confines of an HMO allows us to tap into previously ignored and underserved markets. This means we have access to a bigger, largely uncontested, total addressable market. Further, our non-insurance beneficiary growth of 172% year over year illustrates our unique ability via Clover assistance to support more doctors and therefore more patients in transitioning into value-based care. There's no question that by offering wide networks with high physician choice, we've proven our ability to grow rapidly. we believe that this focus is differentiated and will remain differentiated, even as Medicare Advantage plans continue to proliferate. That said, while we were so focused on growth in the past, fewer resources were dedicated to fine-tuning core operations, which now provides us with significant upside potential in a number of areas. This year, we've turned our attention to sustainability, specifically to reduce MCR and operating expenses. and we're proud of what we've been able to accomplish in the first half of the year. Let's take NCR. Our insurance NCR of 92.1% reaffirms that we can drive near-term efficiencies while continuing to provide high-quality care across a wide network. This is a result of systemic improvements to our internal operating processes over the year, which we expect to be the foundation of tighter, more predictable internal models going forward. On the operating expense side, we've seen meaningful improvement in reducing OPEX as a percentage of revenues. With an emphasized focus on building a path to profitability, these efforts will be a priority for the organization throughout the remainder of the year and into the future. These efforts carry over to the non-insurance side, As one of the largest DCEs, we believe we are in a tremendous position to take the data learnings from last year to influence our go-to market strategy for 2023. Our goal with ACO Reach is to maintain our leading position while moving toward having a strong, profitable program. Again, we are pleased with our Q2 results. That said, I think we can all agree that there's a lot of uncertainty in the world right now. So, despite these improvements and a lower COVID impact during the quarter, we are maintaining a healthy degree of conservatism in our expectations for the rest of the year. Now, let's turn to Clover Assistant. As we focus on building a sustainable and efficient growth model, we believe Clover Assistant is a true differentiator. I've said it before, but we believe Clover Assistant has significant untapped potential, and we continue to invest heavily into the platform. We are enthusiastic about our CA accomplishments to date, including significant year-over-year growth in lives under Clover Assistant management, continued increased clinician use, and our rapid product iteration cycle. CA efficacy continues to improve, and there continues to be a material difference in MCR between members whose providers use Clover Assistant and those who do not. To build on this momentum and manifest the product's full potential, we have a roadmap of new capabilities and features designed to further augment clinical value. I also want to reiterate Clover Assistant's capacity to bring more clinicians into value-based care on both the Medicare Advantage and the original Medicare side. Our goal from a CA product standpoint is to allow for total Medicare panel coverage with any given PCP, including those that have never participated in value-based care, and we continue to orient the business with this in mind. We are continually working on ways for clinicians to use CA for more of their Medicare panels, and we see a number of future opportunities to advance the reach of collaborative systems. Finally, I want to give a special shout out to our compliance and operations teams, as CMS recently issued its final report, and we received the best score that a plan can receive on a CMS program audit. I believe this result reflects the operational diligence we've developed at Clover, as well as the efforts of the stellar team that works hard every day to maintain our high standards. With that, I will now hand it to Mark for the financial update.

Thanks, Andrew. We more than doubled our revenue year over year, delivering $847 million in revenue during the second quarter. Our outsized growth continues to be driven by strong year-over-year growth in lives on account of our differentiated ability to participate in both Medicare Advantage as well as original Medicare. Moving to medical expenses, our net medical claims incurred for the quarter were $859 million. Our gap insurance MCR was 92.1%. down approximately 1,900 basis points compared to the second quarter of 2021. This MCR improvement includes favorable prior period development and gives us confidence in our previously reported guidance ranges. As Andrew said, we are also remaining conservative with our expectations. Our non-insurance MCR was 106% down nearly 600 basis points year over year and in line with internal expectations given seasonal trends as well as prior period development largely due to a CMS rate adjustment. CMS benchmarks in the program do not currently take into account seasonality, so we consider quarterly fluctuation somewhat normal. Second quarter non-GAAP adjusted operating expenses were $75.4 million, representing 8.9 percent of total revenues, down 590 basis points year over year. This quarter is evidence that our initial efforts to decrease operating expenses as a percent of revenues have been successful by improving vendor management as well as moderating headcount. Our GAAP net loss for the quarter was $104.2 million. Our adjusted EBITDA loss for the second quarter was $87.5 million. Note that our adjusted EBITDA excludes $27.7 million of non-cash premium deficiency reserve benefit, as that is not reflective of operating results. Our cash, cash equivalents and investments totaled $683 million with cash, cash equivalents and investments at the parent company and unregulated subsidiaries of $440 million. And we have 477 million common shares outstanding as of June 30th, 2022. We see no immediate need to raise new capital, and as Andrew said, we are focused on meaningfully reducing our insurance and non-insurance MCRs while calibrating our business model for smart, sustainable growth. Finally, we are maintaining our previously guided ranges. Now let me turn the call over to Vivek for some closing comments.

Thank you, Mark. To close, I'm sure many of you saw the press release issued earlier today. As of January 1st of next year, I will transition the role of CEO to someone you all know very well, our president, Andrew Toy. I'll continue on with many existing responsibilities in the role of executive chairperson, working closely with Andrew to ensure a seamless transition and long-term collaborative relationship. I've always believed the right long-term leader for Clover would have a technology-first mindset. When I first met Andrew, I saw a unique strategist operating in the intersection of business and technology with the fastest learning speed of anyone I've ever met. He's a true founder in every sense of the word. Having built companies from scratch, he has an abundance of grit needed to solve the hardest problems in healthcare. Since joining as a CTO in 2018, he has been an integral part of Clover, and this transition is the culmination of a succession plan we've had in place since then. As for my role as executive chair, I'm not going anywhere. I will continue to remain the largest individual and institutional shareholder of Clover. I will continue to be active at the company well into the foreseeable future, just in a more strategic fashion. As CEO, Andrew will oversee all day-to-day operations and finances. I firmly believe this marks the beginning of a new chapter where we both play to our strengths and continue working closely together in Clover's mission to improve every life. So with that, let's take some questions.

And at this time, if you wish to ask a question, please press star one on your telephone keypad. You may remove yourself from the key by pressing the pound key. In the interest of time, we ask that you please limit yourself to one question and one quick follow-up. We'll take our first question from Richard Close with Canaccord Genuity. Please go ahead. Your line is open.

Yeah, thanks for the questions. I had a couple of questions on the direct contracting. Can you go over the number of lives that seem to decrease sequentially a little bit? And then second of all, on D.C., With respect to the reimbursement adjustment, I think you called that out in the non-insurance MCR. Can you talk a little bit about how that impacts any type of revenue guidance for non-insurance in the back half of the year? Yeah, so thanks, Richard. First of all, for the actual lives under management, what we are generally seeing is that in the ACO, in our DCE, we will generally see a decrease in lives due to mortality of people moving out of the program. That's not anything that's unexpected, obviously, but we generally see that. So it's mortality-driven. Tell me if you see something different in the numbers you're looking at, though. For the second dimension, in terms of the rate adjustment, we've priced in a significant portion of this due to our own calculations. I think that there have been a few other ACOs where the effect of the rate adjustment might have been more significant, to be honest, because the Q1 adjustment had a little bit more fluctuation in those other ACOs. Our team has been careful in terms of calculating based upon trend from last year and this year to sort of smooth that out. So we are maintaining and reiterating our generalized views on this. We don't see a major change in the program. On the MCR for the second quarter, was the true-up from the first quarter included in that? And if so, to what degree? Yeah, it was. So, we had prior – so, there's two things in the second quarter. We had some prior period development that was actually inside that – inside the second quarter that flew from Q1, and that was due to the rate adjustment – the prospective rate adjustment guidance that came out. Again, that was generally smaller than the effect of some other folks who I think were reported. The second dimension that was in there that I want to make sure that we emphasize MCR for the ACO program on an annualized basis, not on a quarterly basis. So we do expect seasonal fluctuations, and we see some of that seasonal fluctuation in the Q2 number as well. So between the two of those, I think they're pretty comfortable that we're seeing what we expected within the ACO. Okay. Thank you.

I think we'll take our next question from Kevin Fishbeck with Bank of America. Please go ahead.

Okay, great. Maybe maybe stick with the DCE, can you talk a little bit about your thoughts on the profitability and the growth outlook of that business? Your MLR is obviously better year over year, but still well above what a lot of the peers seem to be talking about. So can you give any update on how you think about the trajectory in that business, but then also how you're thinking about the growth? I know in the past you talked about leveraging Clover into other ACO-type arrangements. So any thoughts there about how that's shaping up for next year?

Yeah. Thanks, Kevin. So respective to the NCR within the DCE, so we are one of the largest, as you all have seen, DCEs, ACOs out there. And it's been growing rapidly. I think that's a testament to our ability to work with a lot of systems, a lot of doctors who want to come into value-based care, but haven't had that on-ramp that we can provide via our platform and via collaborative assistance. So we've grown rapidly within there. And I think what you'll see us do is orient now towards, yes, still looking at growth in the ACO, but having shown that there's a lot of appetite for this model, looking at the people who are participating in the ACO, looking at geographies more, because now that we have a few quarters of data under our belt, we can and see how CMS and CMMI are looking at geographic trends versus national trends and adjusting the participants within the ACO with a mind towards profitability of that particular program. So definitely a huge focus for us. We have a lot of data that we can use to make those decisions. And you'll see as we prepare for the class of 2023 that we're balancing growth within that program, but now very much looking towards the participant dynamics, the geographic dynamics with MCR in mind as well. So we feel like this is a very complementary part of our strategy and something that we can bring to a profitable business for sure.

Okay, great. Any comment on, I mean, I sound like you're saying conservatism in the black app of the year, but anything more specific about what looks like the results, certainly on the MA side, at the very least, much better than what the street was expecting. So any other color there besides just conservatism in the black app?

Yeah, absolutely. So, you know, the standard story here, with the current macro environment around the world, etc., it makes sense for us to look at the back half of the year. Even something like COVID, which we said in our remarks, does not significantly play right now in our data. It still exists and the policies are still in place. We would love to see this policy sort of move on and, I mean, removed, in which case there's additional upside for us on the COVID side. Or, to be clear, on the downside, we don't know if there's another resurgence coming. We don't think so. We think vaccines are getting to a good place, but you never know. So that conservatism is really coming into place because of the overall uncertainty of the world, as I said earlier. One thing I will point out is that we have focused very much on, during this period, working on our core operations. I also indicated that, which I think is helping a lot with their management on the MA side, and we think that we will continue to enjoy benefits there going forward. Thank you.

We'll take our next question from Jason Casarola with Citi. Please go ahead. Your line is open.

Uh, great. Thanks. Um, just a quick clarification. What was the total number of wives under clover assistant management in the quarter? Unless I missed it, it wasn't included in the press release. Yes, that's correct. So, actually, in the past, we have actually looked at the lives under COVID system management and we sort of shared those numbers. What we're actually looking at now here is that going forward, because there is actually some granular shifts in our quarter-to-quarter number on the ACO side, that that causes some fluctuation in the over-CA management number. So, we aren't actually sharing that number because we think that it's not actually indicative of overall CA performance anymore that caused all potential fluctuations on the ACO side of people moving out of contracts before the ACO. So, we will not be sharing that particular number, but that's the reason why. Okay, I guess there's a really quick follow up to that. Could you give any context around the management penetration of your MA book in the least or any other clarity if it's improved quarter to quarter or year over year or any kind of color on that for your MA books is really helpful. Yeah, absolutely. So we are actually continuing to grow that. We always want that number to be moving up and to the right. So while we're not sharing the granular number, we don't see any concerns in that number. We continue to contract doctors. We see that penetration generally be a huge area of focus for us, and the total life on the insurance side has been increasing. Okay, got it. And then I guess just as my follow-up question here, maybe just on the Medicare Advantage MLR, can you just walk through some of the drivers of the improvement there sequentially? You know, the COVID impacts were negligible, I guess, quarter to quarter. So something you could just parse out the better MLR, maybe from lower utilization versus greater COVID or system penetration or any other considerations, just quarter to quarter MA MLR improvement. On the MA side, you said, right? On the insurance side. Yes. Yes, on the insurance side. Yeah, absolutely. So, I think the improvement there, there's a couple of different things. First of all, obviously, compared to last year, the COVID environment is significantly different. So, we all know that. Second of all, during the COVID period, we were very much working on improving COVID-resistant performance. and our generalized coverage on the insurance side. I think you're seeing some of those benefits flow through to now, but we don't have that overarching pandemic sitting on top of all of the results that we're seeing in the medics side. So all of those things are improvements. We're also generally focused on our operations, on getting more and more data, and we've seen a lot of improvements there as well year over year, and that has flowed through to better COVID-resistant performance as well. So, part of it is reversion to the mean after the COVID period. Part of it is absolutely I think we're seeing the results of hard work during the COVID period flow through to this year. Okay. Thank you.

And we'll take our next question from Gary Taylor with Cohen. Please go ahead. Your line is open.

Hi, good afternoon. Just had a couple. Have you guys allocated or would you be willing to allocate on the PDR benefit? How much of that's allocated to MA versus BCE?

Mark, do you agree with that on the PDR benefit?

I'm sorry, I don't have that right at my fingertips, but we can get back to you. Okay. And the reported MLRs by segment do include that benefit, I'm pretty sure. Is that correct? That's correct. And then on the DCE per member per month, it does look like you took, you know, a pretty substantial step down in the first quarter. So I think you were only down about $10 sequentially. So to your credit, I do think you look like you really start booking this more conservative. Can you tell us what the revenue adjustment was for the quarter on the retro trend?

We're not actually sharing that. Yeah, yeah, we don't actually have that right now. We can look at it and see if we can share that. I don't think that's actually in our release, but we'll take that as a follow-up.

Last one would be, we'd heard some feedback that as CMS transitioned to ACO reach and asked folks to reapply that there was, you know, a really high percentage of applications that were denied. Can you talk about, I know you answered Kevin a little bit, is there anything else you can say about 23 or just kind of how you feel about contract retention on the DCE side heading into 23?

Yeah, absolutely. So we feel pretty good overall as we look at about our movement from DCE, this year still DCE, as you said, into the ACO program next year, feeling good about that, feeling about our overall ACO's migration. And then, as I mentioned just now in the answer to a previous question, we are looking at the participation within the program. We've grown it really quickly. We see a lot of data now about where we're being successful, and that's in a lot of different places. And we're also seeing how that interacts with CMS rulings the rulemaking that they've been going through. As we move from DCE into ACO, we've been getting a lot of feedback to CMS. So you'll see us adjust the mix. We still want to work from anywhere from small assist health systems to large health systems. We want to be as many geos as possible, but we are looking at tuning that mix going into 23. So nothing to share right now. We still want to be strongly participating in this program, and we can do so in a really smart way, given how much data we have.

Okay. Thanks, Andrew.

And as a reminder, if you would like to ask a question or have a follow-up question, please press star 1 on your touchtone phone. And we'll go next to Whit Mayer with SVP Securities. Please go ahead. Your line is open.

Hey, thanks. Afternoon. I wanted to just hear you guys talk about how you're thinking about new county growth expectations. I know you press released something maybe a week or so ago. It doesn't seem like you're planning to move into as many new markets and counties perhaps as prior years. Seems that there's probably more of a focus in, you know, where you have a presence today. But just maybe strategically, I just wanted to sort of make sure I understand how you guys are thinking about that new market growth expectation for 2023.

Yeah, thanks, Wes. So as you said, we are very proud of all the results we've had growing in our markets. You know, I have traditional markets in New Jersey and our newer markets that we're very happy with, like Georgia and South Carolina. So while we've traditionally had a lot of expansion in terms of geography coverage, we are now allocating more resources to those areas where we're seeing significant penetration. We are getting to critical mass. We think that we can take a lot of share in those particular areas. So irrespective from growth, part of our passion for expanding has been to bring our models as many markets as possible. I talked about that on the ACO side for MA. It's all about getting that concentration for smart, sustainable growth, and that's why we're putting more resources into the specific markets that we're in right now, a little bit less expansion, as you noted. As Clover, I think you'll see that we're bringing the Clover-assisted model to a lot of geographies. We're just being smart about that blend between the ACO and the MA plans.

That's helpful. My second question is just around the strategy that you guys have with brokers, field marketing organizations, distribution points, and the marketplace, it seems like some of your peers are sort of refining how they're investing, how they partner. I didn't know if there's any change in your posture for 2023, anything that you call, you know, you would share to call out.

Yeah, so I think that what we'll see is a couple of different things that I would call out. We had less exposure to the e-broker market. Not no exposure, I've talked about this, but far less exposure than some of the other players in the space. And I would say that we have talked about this maybe a couple of years ago in the first few years of COVID that hurt us a little bit in our growth strategy, but actually because we were not in the e-channel as strongly. That was because we really saw weakness and softness in the quality of leads and the quality of conversion coming from that market. And I do think that you'd see other players who were perhaps overexposed to the e-broker market now seeing that they have to move from there into the more traditional line brokerage market. So there's no change in our posture overall. We've always been strong on the individual broker market. We think our products are things that those brokers love to sell and that people love to see brought into the various MA markets. It's the other plans that perhaps are doing a little more in that space now because of their over-reliance on eBroker before. Okay. Thanks, guys.

And we'll take a follow-up from Richard Close with Canaccord Genuity. Please go ahead. Your line is open.

Yeah, I had a couple follow-ups, maybe on Whit's question. Do you think not expanding to as many counties, does that negatively impact your growth at all? And how should we think about the member acquisition costs or tax associated with just concentrating your efforts in new counties? Or existing counties, I should say. Absolutely. So I think in those new markets, and this is the same for both MA plans, as you know, the cash is disproportionately high in the newer markets, the newer expansion counties and the more recent expansion counties, because the fixed cost of building that brand, building the network posture, building the network brand. uh are all amortized over fewer lives obviously so that don't make acquisition in those areas more expensive you have a different new member versus a returning member mix which does affect the mcr optics of those markets and so we're in a good place where we think we can return to expanding uh on the ma side aggressively whenever we really like we've proven that out We continue to be able to contract on the ACO side across the country because that's a very good program for that to bring clover assistance to many more doctors. And then we can be, as you said, much more CAC efficient, really driving the high penetration within the markets we're already in. So we actually like the fact that it makes us more efficient for smart growth within those markets. And like the impact of growth at all? Sorry, can you repeat that? Yeah, so does it impact your ability to grow above average on the MA side by not expanding to as many counties? No, I don't think so. We intend to maintain above industry average growth, and that's what we're looking at. So even as we look at looking more efficient, looking at that cap equation, looking at sustainability within the MCA, because, as you know, new members do come generally of a higher MCR cost. All of those things, we think, when combined with our differentiated product, our wide network, still makes us very appealing, and we should be able to deliver good, strong growth. So we're looking at being sustainable. We're looking at being smart. But I don't think the expansion count is negatively affected. any way. If anything, it makes us more efficient to acquire those lives. And if you look at the total number of Medicare eligibles within the markets we're strongly playing in, there's a very, very high ceiling there. I don't think we're close to sort of saturating those particular markets. Okay, thank you.

There are no further questions over the phone line. I will now turn the call over to Brian Schmidt for any community questions.

Thank you, Operator. We'll get started with the community questions. First off, Andrew, how do you plan to achieve profitability? Yeah, thanks for that question. So the process of profitability is a huge focus for us right now and requires a number of moving pieces to fall into place, but we're confident that we're well-oriented to achieving that. So number one is getting our MCRs moving downward. and reducing NCRs. And we have a lot of progress towards that as we've reported this quarter on both the MA side and on the ACO side. We've seen insurance NCR improvement year over year. And even though non-insurance NCR is seasonally affected, that's also improving year over year. That combined with looking intelligently about how we play in various geographies and regions As we said, we can still deliver above industry average growth and bring NCR down, resulting in overall sustainability and moving towards profitability. The second part is, of course, we're looking at controlling operating expense growth as a percentage of revenues. So, we're improving on that. We have a lot of efficiencies we can bring, as I said during my remarks. We've been so focused on growth the past number of years. There are a number of places that we can optimize, tune, and there's tremendous upside for us to be able to do that on the OPEX side as well. And so you'll see us really focusing there. Thank you. Our next question is, how scalable and easily integrated is the Glover system? Any ongoing challenges seen there? Yeah, so very interestingly, the biggest factor we can see and the biggest question we're asked is providers coming to us and saying, how can I use Clover Assistance to look after more of my Medicare panel? I understand why you want us to use this for your Clover members. I get that. And then even being able to add the fee-for-service original Medicare members, that's great for the providers who are doing that. But we get asked all the time, How do we use it for more of their panel? Because A, that simplifies their workflows, love it, and then B, it's something whereby they can think about Clover Assistant really helping them manage multiple value-based care programs. We really like doing that. We think that Clover Assistant as a tool is designed to make doctors' lives easier. And so the more the panel we can cover, the better that's going to be. So more coming soon on that particular strategy and how we can help doctors with that. But that's the number one question that we're asked, and that's something that we're very focused on. Thank you.

Our final community question is, what are the prospects of Clover Assistant being used as a SaaS product?

yeah so um as we look at the sas world uh it's we have nothing to announce at this time i said that we want to cover all the pcb medicare panel uh as fast as one business model we could use to get there we however really do think that we're in the business of managing medical risk and helping providers manage that risk and so blending a sas like approach along with a risk management approach is something I think Clover can uniquely do. I'm really excited to develop that more, and we'll talk about that in coming quarters. Thank you. Operator, we'll turn it back to you.

We did have a question in our queue up. We'll take our next question from Jonathan Yong with Credit Suisse. Please go ahead, sir. Your line is open.

Hi, guys. Thanks for taking my question. It's Nick Chivikian for Jonathan today. Just looking ahead, can you talk about how you're thinking about STARS for payment year of 24, especially with CMS as it's starting to roll off some of its COVID flexibilities? Thanks.

Yeah, absolutely. So on the STARS front, I think that what we've seen is that it's quite an interesting, challenging STARS environment right now because of all the adjustments that were made during COVID. And then now CMS is rolling some of those back, as you said. Cut points are moving around much more than they normally have been. So we are seeing that environment. I think other plans are seeing that environment. That said, we always have guided that we would be looking for three and a half stars coming out of the 2021 measurement year, and we are continuing to reiterate that particular guidance. So it would be a great achievement for us in the current world if we were able to push through to that. We think that we can still do that. We will have more to share in the coming few months.

All right, and this concludes the Q&A portion of today's conference. I would now like to turn the call over to Vivek Garipalli for any additional and closing remarks.

Thanks, everyone. Andrea, really great job today. Just to close, while we feel good about where we are today, there's really great and hard work being done this year to drive further progress. And just to reiterate, enabling all of our accomplishments is The Clover Assistant provides us with a growing technology moat, making a meaningfully positive impact on health equity and advancing our mission to improve every life. Thank you all for joining us today.

Thank you. And this concludes today's Clover Health second quarter 2022 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.