Focus shifting to Elevance Health, instead of UnitedHealth, as the first to reveal quarterly results
In a move that sets it apart from its competitors, Elevance Health (formerly Anthem) is set to be the first among the largest managed care companies to report its Q2 2025 earnings on July 17. This early reporting is not a new industry trend but rather a scheduling decision specific to Elevance [1][2][4].
The backdrop for Q2 earnings is one of significant cost pressures, particularly for providers of government-subsidized health insurance, such as Centene and UnitedHealth. However, Elevance is not immune to these pressures [2]. The company is expected to see robust revenue growth, up by 11.4% year-over-year, but profit margins are under pressure due to rising benefit expenses, operational overhaul costs, and membership dynamics [2].
Rising benefit expenses are driven by higher utilization of care and inflationary pressures in prescription drugs and home health [2]. Operational overhaul costs, including investments in digital infrastructure and higher interest expenses, are pushing total operational costs up by about 11% year-over-year [2]. Membership dynamics show a drop in Medicaid enrollment due to post-pandemic eligibility redeterminations, but this is offset somewhat by a 12.4% year-over-year increase in Medicare Advantage membership [2].
Elevance Health's CEO, Gail Boudreaux, has managed to keep the company's health insurance businesses diversified, with more than half of its health plan membership coming from commercial or employer group accounts [3]. This diversity, along with the company's franchise value, brand recognition in 14 key states, and efforts to diversify and expand services at Carelon, has earned Elevance a positive outlook from analysts [3].
The company's Q2 report will provide valuable insights into the health sector's performance amidst rising costs. Elevance manages Medicaid via contracts with multiple states and also sells individual coverage under the Affordable Care Act [2].
The cost pressures faced by Elevance Health are not unique. Similar challenges are being experienced by other major health insurers in the U.S., including Centene, Molina Healthcare, and UnitedHealth Group [5]. Wall Street analysts and investors often look to UnitedHealth Group for clues on the health sector's performance, but this week, the focus shifts to Elevance Health [5].
The health sector is currently facing challenges in controlling costs, particularly in government-subsidized health insurance plans. This is evident from recent announcements by Centene, which withdrew its 2025 financial guidance due to higher costs in individual health plans under the Affordable Care Act and rising expenses from Medicaid plans [6]. Centene's announcement was the latest in a series of health insurance companies struggling to control costs in government-subsidized plans over the last two years [6].
UnitedHealth Group, which owns the nation's largest health insurer, will report second quarter earnings at the end of the month [1]. Humana and CVS Health struggled last year with Medicare Advantage plans, leading to the elevation of new chief executives and CVS's exit from the individual health insurance business [7]. Molina Healthcare recently lowered its earnings guidance for the rest of the year due to cost pressures in Medicaid, Medicare Advantage, and individual coverage under the Affordable Care Act [8].
CVS's exit from the individual health insurance business will leave about 1 million Aetna members in 17 states looking for new coverage in 2026 [9].
In conclusion, Elevance Health's early Q2 report is a function of its own reporting timeline and not a strategic or industry-wide precedent. Its results will provide early insight into how cost pressures are affecting managed care companies, but it does not signify a broader shift in earnings reporting among major insurers [1][2][4]. The company's Q2 report is significant as it provides insights into the health sector's performance amidst rising costs.
In the realm of science and medical-conditions, Elevance Health, a prominent player in the health-and-wellness industry, is expected to delve into the impact of these factors on their business as they report their Q2 2025 earnings on July 17, potentially offering valuable insights for the sector. Despite the anticipated revenue growth, the company faces pressure on profit margins due to rising benefit expenses, operational costs, and membership dynamics, similar challenges experienced by competitors such as Centene, Molina Healthcare, and UnitedHealth Group.
