Elevance Cuts Financial Guidance Due to Rising ACA Exchange, Medicaid Costs

Jul 17
Jul 17, 2025

Elevance Health, Inc. on July 17 revealed second-quarter earnings that were in line with the Wall Steet consensus estimate, but the company nonetheless reduced its financial guidance for the year, citing increasing cost trends in the Affordable Care Act exchange and managed Medicaid segments. The insurer is the latest company this month to mention struggles in those business lines, following Centene Corp.’s July 1 announcement that it pulled its 2025 guidance and Molina Healthcare, Inc.’s July 7 disclosure that it reduced its guidance.

Elevance’s stock closed at $302.25 on July 17, a 12.2% decline from the previous day and its lowest share price since February 2021.
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Tim Casey

Tim has been a reporter and editor for newspapers, websites and magazines for more than 20 years, including 10 years covering health care business topics. He has a deep knowledge of the managed care industry and pharmacy benefit management. He also has experience covering medical conferences and clinical and legislative health care issues. In 2014, the Society for Advancing Business Editing and Writing selected Tim as one of 15 journalists to participate in a national symposium on the Affordable Care Act. Tim has a B.A. in Psychology from the University of Notre Dame and an M.B.A. from Georgetown University.