Elevance Health, Inc.

I would now like to turn the conference over to the company's management. Please go ahead.

Good morning, and welcome to Elevance Health's first quarter 2025 earnings call. My name is Nathan Rich, Vice President of Investor Relations. With us this morning on the earnings call are Gail Boudreau, President and CEO, Mark Kay, our CFO, Pete Haitayan, President of Carillon, Morgan Kendrick, President of our Commercial Health Benefits business, and Felicia Norwood, president of our government health benefits business. Gail will begin the call with a review of the progress we've made against our strategic initiatives and a discussion of our first quarter performance. Mark will then discuss our financial results and outlook in greater detail. After our prepared remarks, the team will be available for Q&A. During the call, we will reference certain non-GAAP measures, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available on our website, ElevanceHealth.com. We will also be making forward-looking statements on this call. Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Elevance Health. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to carefully review the risk factors discussed in today's press release and in our quarterly filings with the SEC. I will now turn the call over to Gail.

Good morning and thank you for joining today's call. At Elevance Health, we began 2025 with focus, momentum and a deep commitment to advancing our purpose to improve the health of humanity. Across our enterprise, this purpose is not an abstract mission. It's what drives how we serve our members, support care providers and partner with communities. In the first quarter, We've seen that commitment come to life in powerful ways. Let me begin by highlighting just a few examples of the difference we're making. We believe the healthcare experience should be simpler, more affordable, and more human. That's why we've made sustained investments to fundamentally transform how people experience their care. In Q1, our patient advocacy solutions supported over 6 million members. delivering personalized guidance to navigate benefits, manage chronic conditions, and access behavioral health services. With a 95% satisfaction rate, it's become a valuable differentiator, especially among employers seeking holistic, proactive care for their employees. We also continue to scale HealthOS, our digital platform that integrates clinical data and insights into provider workflows. It now supports more than 88,000 care providers and over 1,200 provider organizations, enabling real-time decision making and seamless prior authorizations when documentation is accurate and complete. And for high-performing providers, we've gone a step further, eliminating prior authorization requirements on more than 400 outpatient procedures to reduce administrative friction and speed up access to care. These efforts are helping us reduce complexity, rebuild trust, and create a more connected care experience for both members and care providers. Across every line of business, we're addressing the full spectrum of physical, behavioral, and social health to drive better outcomes and lower total cost of care. We're expanding our value-based oncology care model to Medicare Advantage this year, following success in commercial last year with reduced inpatient admissions and higher adherence to treatment protocols. These are the kind of outcomes that matter most to members and care teams alike. Through CareLine services, we continue to expand our external reach. In Q1, We launched new post acute and behavioral health contracts with health plan clients validating our ability to deliver risk based outcomes for complex populations and reinforcing Caroline's role as a scalable platform for whole person care. We also completed the acquisition of care bridge at the end of last year further strengthening our capabilities in home and Community based services. By integrating these offerings into our Medicaid and dual platforms, we're delivering high-touch, in-home support to individuals with complex needs, helping to avoid ER visits and institutional stays. And as we scale our risk-based care model, we're leveraging Carillon's advanced data-driven capabilities to deepen collaboration with providers and close gaps in care. These value based arrangements are not only improving quality, but have also driven nearly $100 in per member per month savings across medical and pharmacy, highlighting the impact of our whole health approach. Now turning to our first quarter results. We delivered performance in line with our expectations, reflecting consistent execution and disciplined operations despite an elevated trend environment. Across our businesses, we're staying focused on what we can control, delivering operational results, engaging proactively with partners, and advancing our long-term strategy. In Medicaid, we continue to make progress on rate alignment with April adjustments coming in as expected and early discussions for the July cohort underway. These conversations reflect a shared understanding of the need to align reimbursement with the current level of acuity of our membership. At the same time, we're partnering with states to rethink care delivery. Our long-term care model continues to deliver better outcomes at lower cost by integrating home-based services, behavioral health, and care coordination. Our recent acquisition of Center's Plan for Healthy Living in New York will expand our whole health approach to deliver improved care for members and greater value for the state In Medicare Advantage, performance was consistent with expectations, retention remained strong, and growth was targeted and disciplined, supporting both margin and membership sustainability. We remain confident in the long-term outlook for MA. Stronger retention not only improves member satisfaction, it's associated with better care coordination, fewer inpatient stays, and lower overall Medicare spending. In commercial, we're seeing strong engagement with our integrated offerings. Employers increasingly value our differentiated approach, which brings together advocacy, behavioral health, pharmacy and specialty care into a seamless experience. We're encouraged by the momentum we have heading into the 2026 selling season. And while individual ACA effectuation rates have been lower, we still expect solid growth in 2025. Our expansion into three new states supports our broader strategy to build lifetime value through coordinated ACA and Medicaid coverage. Caroline continues to be a strategic growth engine for Elevance Health. In the first quarter, we significantly expanded our relationships with external payers, including many Blues plans for solutions and post-acute behavioral health, specialty care, and palliative, further validating Caroline's ability to deliver outcomes beyond our own membership. These relationships underscore the strength of Caroline's operating model and its alignment with what clients are asking for, solutions that drive outcomes, reduce cost, and simplify care. We're executing with consistency, advancing our strategy with discipline, and delivering measurable value across the enterprise. What sets Elevance Health apart is not just how we perform, but why we perform. Through a purpose-driven model that focuses on whole person health, supports our partners, and delivers outcomes that matter. Before I turn it over to Mark, I want to thank our more than 100,000 associates. Their commitment and passion continues to define our culture, power our performance, and strengthen our impact. This quarter, Elevance Health was named once again to Fortune's 100 Best Companies to Work For, recognized as one of America's most innovative companies and included in the Just 100 by Just Capital, reflecting both the values we uphold and the difference we strive to make every day. With that, I'll turn it over to our CFO, Mark Kay. to take you through the financial results and outlook.