false2024Q1000115603912/3100011560392024-01-012024-03-3100011560392024-04-10xbrli:shares00011560392024-03-31iso4217:USD00011560392023-12-31iso4217:USDxbrli:shares00011560392023-01-012023-03-310001156039us-gaap:ProductMember2024-01-012024-03-310001156039us-gaap:ProductMember2023-01-012023-03-310001156039elv:ServiceFeesMember2024-01-012024-03-310001156039elv:ServiceFeesMember2023-01-012023-03-3100011560392022-12-3100011560392023-03-310001156039us-gaap:CommonStockMember2023-12-310001156039us-gaap:AdditionalPaidInCapitalMember2023-12-310001156039us-gaap:RetainedEarningsMember2023-12-310001156039us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001156039us-gaap:NoncontrollingInterestMember2023-12-310001156039us-gaap:RetainedEarningsMember2024-01-012024-03-310001156039us-gaap:NoncontrollingInterestMember2024-01-012024-03-310001156039us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001156039us-gaap:CommonStockMember2024-01-012024-03-310001156039us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001156039us-gaap:CommonStockMember2024-03-310001156039us-gaap:AdditionalPaidInCapitalMember2024-03-310001156039us-gaap:RetainedEarningsMember2024-03-310001156039us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001156039us-gaap:NoncontrollingInterestMember2024-03-310001156039us-gaap:CommonStockMember2022-12-310001156039us-gaap:AdditionalPaidInCapitalMember2022-12-310001156039us-gaap:RetainedEarningsMember2022-12-310001156039us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001156039us-gaap:NoncontrollingInterestMember2022-12-310001156039us-gaap:RetainedEarningsMember2023-01-012023-03-310001156039us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001156039us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001156039us-gaap:CommonStockMember2023-01-012023-03-310001156039us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001156039us-gaap:CommonStockMember2023-03-310001156039us-gaap:AdditionalPaidInCapitalMember2023-03-310001156039us-gaap:RetainedEarningsMember2023-03-310001156039us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001156039us-gaap:NoncontrollingInterestMember2023-03-31elv:individualelv:countyelv:stateelv:segmentxbrli:pure0001156039elv:ParagonHealthcareInc.Member2024-03-310001156039elv:BioPlusParentLLCAndSubsidiariesMember2024-03-310001156039elv:BioPlusParentLLCAndSubsidiariesMember2024-01-012024-03-310001156039us-gaap:EmployeeSeveranceMemberelv:A20232024BusinessEfficiencyProgramMemberelv:CorporateOtherSegmentMember2024-03-310001156039us-gaap:EmployeeSeveranceMemberelv:A20232024BusinessEfficiencyProgramMemberelv:CorporateOtherSegmentMember2023-12-310001156039us-gaap:EmployeeSeveranceMemberelv:A20232024BusinessEfficiencyProgramMemberelv:CorporateOtherSegmentMember2024-01-012024-03-310001156039us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001156039us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-03-310001156039us-gaap:ForeignGovernmentDebtMember2024-03-310001156039us-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001156039us-gaap:CorporateDebtSecuritiesMember2024-03-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMember2024-03-310001156039us-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310001156039us-gaap:OtherAggregatedInvestmentsMember2024-03-310001156039us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001156039us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001156039us-gaap:ForeignGovernmentDebtMember2023-12-310001156039us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001156039us-gaap:CorporateDebtSecuritiesMember2023-12-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001156039us-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001156039us-gaap:OtherAggregatedInvestmentsMember2023-12-31elv:security0001156039us-gaap:ExchangeTradedFundsMember2024-03-310001156039us-gaap:ExchangeTradedFundsMember2023-12-310001156039elv:CommonEquitySecuritiesMember2024-03-310001156039elv:CommonEquitySecuritiesMember2023-12-310001156039us-gaap:PrivateEquityFundsMember2024-03-310001156039us-gaap:PrivateEquityFundsMember2023-12-310001156039us-gaap:FixedMaturitiesMember2024-01-012024-03-310001156039us-gaap:FixedMaturitiesMember2023-01-012023-03-310001156039us-gaap:EquitySecuritiesMember2024-01-012024-03-310001156039us-gaap:EquitySecuritiesMember2023-01-012023-03-310001156039us-gaap:OtherInvestmentsMember2024-01-012024-03-310001156039us-gaap:OtherInvestmentsMember2023-01-012023-03-310001156039us-gaap:MaturityOvernightMemberus-gaap:CashMember2024-03-310001156039us-gaap:MaturityOvernightMemberus-gaap:CashMember2023-12-310001156039us-gaap:MaturityOvernightMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001156039us-gaap:MaturityOvernightMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:MaturityOvernightMember2024-03-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:MaturityOvernightMember2023-12-310001156039us-gaap:CashFlowHedgingMember2024-03-310001156039us-gaap:CashFlowHedgingMember2023-12-310001156039us-gaap:FairValueInputsLevel1Member2024-03-310001156039us-gaap:FairValueInputsLevel2Member2024-03-310001156039us-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001156039us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-03-310001156039us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel1Member2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtMember2024-03-310001156039us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001156039us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2024-03-310001156039us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2024-03-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310001156039us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310001156039us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001156039us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:OtherDebtSecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:ExchangeTradedFundsMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:ExchangeTradedFundsMember2024-03-310001156039us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedFundsMember2024-03-310001156039us-gaap:EquitySecuritiesMemberus-gaap:ExchangeTradedFundsMember2024-03-310001156039us-gaap:FairValueInputsLevel1Memberelv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberelv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMember2024-03-310001156039elv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039elv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:PrivateEquityFundsMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:PrivateEquityFundsMember2024-03-310001156039us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PrivateEquityFundsMember2024-03-310001156039us-gaap:EquitySecuritiesMemberus-gaap:PrivateEquityFundsMember2024-03-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2024-03-310001156039us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:EquitySecuritiesMember2024-03-310001156039us-gaap:FairValueInputsLevel1Memberelv:CommonEquitySecuritiesMemberus-gaap:OtherInvestmentsMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberelv:CommonEquitySecuritiesMemberus-gaap:OtherInvestmentsMember2024-03-310001156039elv:CommonEquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherInvestmentsMember2024-03-310001156039elv:CommonEquitySecuritiesMemberus-gaap:OtherInvestmentsMember2024-03-310001156039us-gaap:DerivativeMemberus-gaap:FairValueInputsLevel1Member2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeMember2024-03-310001156039us-gaap:DerivativeMemberus-gaap:FairValueInputsLevel3Member2024-03-310001156039us-gaap:DerivativeMember2024-03-310001156039us-gaap:FairValueInputsLevel1Member2023-12-310001156039us-gaap:FairValueInputsLevel2Member2023-12-310001156039us-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001156039us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001156039us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel1Member2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtMember2023-12-310001156039us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001156039us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001156039us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001156039us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001156039us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001156039us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001156039us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:OtherDebtSecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:ExchangeTradedFundsMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:ExchangeTradedFundsMember2023-12-310001156039us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ExchangeTradedFundsMember2023-12-310001156039us-gaap:EquitySecuritiesMemberus-gaap:ExchangeTradedFundsMember2023-12-310001156039us-gaap:FairValueInputsLevel1Memberelv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberelv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMember2023-12-310001156039elv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039elv:CommonEquitySecuritiesMemberus-gaap:EquitySecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:PrivateEquityFundsMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:PrivateEquityFundsMember2023-12-310001156039us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PrivateEquityFundsMember2023-12-310001156039us-gaap:EquitySecuritiesMemberus-gaap:PrivateEquityFundsMember2023-12-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2023-12-310001156039us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:EquitySecuritiesMember2023-12-310001156039us-gaap:FairValueInputsLevel1Memberelv:CommonEquitySecuritiesMemberus-gaap:OtherInvestmentsMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberelv:CommonEquitySecuritiesMemberus-gaap:OtherInvestmentsMember2023-12-310001156039elv:CommonEquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherInvestmentsMember2023-12-310001156039elv:CommonEquitySecuritiesMemberus-gaap:OtherInvestmentsMember2023-12-310001156039us-gaap:DerivativeMemberus-gaap:FairValueInputsLevel1Member2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeMember2023-12-310001156039us-gaap:DerivativeMemberus-gaap:FairValueInputsLevel3Member2023-12-310001156039us-gaap:DerivativeMember2023-12-310001156039us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001156039us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001156039us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001156039us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001156039us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001156039us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001156039us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001156039us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001156039us-gaap:ShortDurationInsuranceContractAccidentYear2022Member2024-03-310001156039us-gaap:ShortDurationInsuranceContractAccidentYear2023Member2024-03-310001156039elv:ShortDurationInsuranceContractAccidentYear2024Member2024-03-310001156039elv:SeniorUnsecuredNotesMemberus-gaap:SeniorNotesMember2024-03-310001156039elv:SeniorUnsecuredNotesMemberus-gaap:SeniorNotesMember2023-12-310001156039elv:SurplusNotesMember2024-03-310001156039elv:SurplusNotesMember2023-12-310001156039elv:A5YearFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-01-012024-03-310001156039elv:A5YearFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-03-310001156039elv:A5YearFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-12-310001156039us-gaap:CommercialPaperMember2024-03-310001156039us-gaap:CommercialPaperMember2023-12-310001156039us-gaap:FederalHomeLoanBankAdvancesMember2024-03-310001156039us-gaap:FederalHomeLoanBankAdvancesMember2023-12-3100011560392022-09-012022-09-300001156039elv:BCBSAntitrustLitigationMember2022-09-012022-09-3000011560392022-09-30elv:appeal0001156039elv:AnthemInc.v.ExpressScriptsInc.Memberelv:PharmacypricingMember2016-03-012016-03-310001156039elv:OperationalMemberelv:AnthemInc.v.ExpressScriptsInc.Member2016-03-012016-03-310001156039elv:AnthemInc.v.ExpressScriptsInc.Member2016-03-012016-03-310001156039elv:TechnologyInfrastructureAndRelatedManagementAndSupportServicesMember2024-01-012024-03-3100011560392024-03-222024-03-2200011560392023-03-242023-03-240001156039us-gaap:SubsequentEventMember2024-04-1600011560392023-01-240001156039us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001156039us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001156039us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001156039us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001156039us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001156039us-gaap:AccumulatedNetInvestmentGainLossAttributableToNoncontrollingInterestMember2024-01-012024-03-310001156039us-gaap:AccumulatedNetInvestmentGainLossAttributableToNoncontrollingInterestMember2023-01-012023-03-310001156039us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001156039us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001156039elv:AOCINonCreditComponentsOfImpairmentsOnInvestmentsIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001156039elv:AOCINonCreditComponentsOfImpairmentsOnInvestmentsIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001156039elv:AOCINonCreditComponentsOfImpairmentsOnInvestmentsIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001156039elv:AOCINonCreditComponentsOfImpairmentsOnInvestmentsIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001156039elv:AOCINonCreditComponentsOfImpairmentsOnInvestmentsIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001156039elv:AOCINonCreditComponentsOfImpairmentsOnInvestmentsIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001156039us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2023-12-310001156039us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2022-12-310001156039us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2024-01-012024-03-310001156039us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2023-01-012023-03-310001156039us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2024-03-310001156039us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2023-03-310001156039us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001156039us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001156039us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001156039us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001156039us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001156039us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001156039elv:AOCIFuturePolicyBenefitsIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001156039elv:AOCIFuturePolicyBenefitsIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001156039elv:AOCIFuturePolicyBenefitsIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001156039elv:AOCIFuturePolicyBenefitsIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001156039elv:AOCIFuturePolicyBenefitsIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001156039elv:AOCIFuturePolicyBenefitsIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001156039us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001156039us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001156039us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001156039us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001156039us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001156039us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001156039us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001156039us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001156039us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001156039us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001156039us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001156039us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001156039elv:RestrictedStockUnitsContingentMember2024-01-012024-03-310001156039us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001156039elv:RestrictedStockUnitsContingentMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:HealthBenefitsSegmentMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonServicesSegmentMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonTotalMember2024-01-012024-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310001156039us-gaap:IntersegmentEliminationMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberelv:HealthBenefitsSegmentMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMemberus-gaap:ProductMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberelv:CarelonServicesSegmentMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberelv:CarelonTotalMember2024-01-012024-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductMember2024-01-012024-03-310001156039us-gaap:IntersegmentEliminationMemberus-gaap:ProductMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:HealthBenefitsSegmentMemberelv:ServiceFeesMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMemberelv:ServiceFeesMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonServicesSegmentMemberelv:ServiceFeesMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:ServiceFeesMemberelv:CarelonTotalMember2024-01-012024-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMemberelv:ServiceFeesMember2024-01-012024-03-310001156039us-gaap:IntersegmentEliminationMemberelv:ServiceFeesMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:HealthBenefitsSegmentMemberelv:UnaffiliatedMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMemberelv:UnaffiliatedMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonServicesSegmentMemberelv:UnaffiliatedMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonTotalMemberelv:UnaffiliatedMember2024-01-012024-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMemberelv:UnaffiliatedMember2024-01-012024-03-310001156039us-gaap:IntersegmentEliminationMemberelv:UnaffiliatedMember2024-01-012024-03-310001156039elv:UnaffiliatedMember2024-01-012024-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:HealthBenefitsSegmentMember2024-01-012024-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:CarelonRxSegmentMember2024-01-012024-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:CarelonServicesSegmentMember2024-01-012024-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:CarelonTotalMember2024-01-012024-03-310001156039elv:AffiliatedMemberus-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310001156039us-gaap:OperatingSegmentsMemberelv:HealthBenefitsSegmentMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonServicesSegmentMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonTotalMember2023-01-012023-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310001156039us-gaap:IntersegmentEliminationMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberelv:HealthBenefitsSegmentMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMemberus-gaap:ProductMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberelv:CarelonServicesSegmentMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberelv:CarelonTotalMember2023-01-012023-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMemberus-gaap:ProductMember2023-01-012023-03-310001156039us-gaap:IntersegmentEliminationMemberus-gaap:ProductMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:HealthBenefitsSegmentMemberelv:ServiceFeesMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMemberelv:ServiceFeesMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonServicesSegmentMemberelv:ServiceFeesMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:ServiceFeesMemberelv:CarelonTotalMember2023-01-012023-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMemberelv:ServiceFeesMember2023-01-012023-03-310001156039us-gaap:IntersegmentEliminationMemberelv:ServiceFeesMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:HealthBenefitsSegmentMemberelv:UnaffiliatedMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonRxSegmentMemberelv:UnaffiliatedMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonServicesSegmentMemberelv:UnaffiliatedMember2023-01-012023-03-310001156039us-gaap:OperatingSegmentsMemberelv:CarelonTotalMemberelv:UnaffiliatedMember2023-01-012023-03-310001156039us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMemberelv:UnaffiliatedMember2023-01-012023-03-310001156039us-gaap:IntersegmentEliminationMemberelv:UnaffiliatedMember2023-01-012023-03-310001156039elv:UnaffiliatedMember2023-01-012023-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:HealthBenefitsSegmentMember2023-01-012023-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:CarelonRxSegmentMember2023-01-012023-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:CarelonServicesSegmentMember2023-01-012023-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMemberelv:CarelonTotalMember2023-01-012023-03-310001156039elv:AffiliatedMemberus-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310001156039elv:AffiliatedMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                     
Commission file number: 001-16751
eh_logo.jpg
ELEVANCE HEALTH, INC.
(Exact name of registrant as specified in its charter)
Indiana 35-2145715
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification Number)
220 Virginia Avenue
Indianapolis, Indiana 46204
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (833401-1577
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueELVNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒ No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer  Accelerated filer
Non-accelerated filer  Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒
As of April 10, 2024, 232,417,867 shares of the Registrant’s Common Stock were outstanding.



Elevance Health, Inc.
Quarterly Report on Form 10-Q
For the Period Ended March 31, 2024
Table of Contents
 
  Page
PART I. FINANCIAL INFORMATION
ITEM 1.
ITEM 2.
ITEM 3.
ITEM 4.
PART II. OTHER INFORMATION
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.
-1-


PART I. FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS
Elevance Health, Inc.
Consolidated Balance Sheets
March 31,
2024
December 31,
2023
(Unaudited)

(In millions, except share and per share data)
Assets
Current assets:
Cash and cash equivalents$6,226 $6,526 
Fixed maturity securities (amortized cost of $30,427 and $30,446; allowance for credit losses of $4 and $4)
29,530 29,614 
Equity securities511 229 
Premium receivables8,931 7,902 
Self-funded receivables4,242 4,558 
Other receivables5,120 5,405 
Other current assets6,388 5,795 
Total current assets60,948 60,029 
Long-term investments:
Fixed maturity securities (amortized cost of $902 and $890; allowance for credit losses of $0 and $0)
880 876 
Other invested assets6,713 6,107 
Property and equipment, net4,451 4,359 
Goodwill25,947 25,317 
Other intangible assets10,710 10,273 
Other noncurrent assets2,245 1,967 
Total assets$111,894 $108,928 
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable$16,459 $16,111 
Other policyholder liabilities5,298 5,600 
Unearned income1,474 1,402 
Accounts payable and accrued expenses5,658 6,910 
Short-term borrowings1,575 225 
Current portion of long-term debt2,900 1,649 
Other current liabilities10,970 9,894 
Total current liabilities44,334 41,791 
Long-term debt, less current portion21,976 23,246 
Reserves for future policy benefits765 778 
Deferred tax liabilities, net2,201 1,970 
Other noncurrent liabilities1,908 1,738 
Total liabilities71,184 69,523 
Commitments and contingencies – Note 11
Shareholders’ equity
Preferred stock, without par value, shares authorized – 100,000,000; shares issued and outstanding – none
  
Common stock, par value $0.01, shares authorized – 900,000,000; shares issued and outstanding –
232,544,717 and 233,071,088
2 2 
Additional paid-in capital8,883 8,868 
Retained earnings33,088 31,749 
Accumulated other comprehensive loss(1,365)(1,313)
Total shareholders’ equity40,608 39,306 
Noncontrolling interests102 99 
Total equity40,710 39,405 
Total liabilities and equity$111,894 $108,928 
See accompanying notes.
-2-


Elevance Health, Inc.
Consolidated Statements of Income
(Unaudited) 
 Three Months Ended 
 March 31
20242023
(In millions, except per share data)
Revenues
Premiums$35,696 $35,868 
Product revenue4,499 4,022 
Service fees2,078 2,008 
Total operating revenue42,273 41,898 
Net investment income465 387 
Net losses on financial instruments(161)(113)
Total revenues42,577 42,172 
Expenses
Benefit expense30,546 30,786 
Cost of products sold3,825 3,481 
Operating expense4,886 4,800 
Interest expense265 251 
Amortization of other intangible assets116 235 
Total expenses39,638 39,553 
Income before income tax expense
2,939 2,619 
Income tax expense690 615 
Net income2,249 2,004 
Net income attributable to noncontrolling interests
(3)(15)
Shareholders’ net income$2,246 $1,989 
Shareholders’ net income per share
Basic $9.65 $8.37 
Diluted $9.59 $8.30 
Dividends per share$1.63 $1.48 















See accompanying notes.

-3-


Elevance Health, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited) 
 Three Months Ended 
 March 31
20242023
(In millions)
Net income$2,249 $2,004 
Other comprehensive (loss) income, net of tax:
Change in net unrealized losses/gains on investments(56)427 
Change in non-credit component of impairment losses on investments
 (2)
Change in net unrealized gains/losses on cash flow hedges2 11 
Change in net periodic pension and postretirement costs4 2 
Change in future policy benefits (2)2 
Foreign currency translation adjustments 2 
Other comprehensive (loss) income
(52)442 
Net income attributable to noncontrolling interests
(3)(15)
Other comprehensive income attributable to noncontrolling interests
 (2)
Total shareholders’ comprehensive income$2,194 $2,429 



















See accompanying notes.

-4-


Elevance Health, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended 
 March 31
20242023
(In millions)
Operating activities
Net income$2,249 $2,004 
Adjustments to reconcile net income to net cash provided by operating activities:
Net losses on financial instruments161 113 
Equity in net losses of other invested assets
27 30 
Depreciation and amortization331 462 
Deferred income taxes136 (255)
Share-based compensation62 61 
Changes in operating assets and liabilities:
Receivables, net(282)(29)
Other invested assets(29)(15)
Other assets(1,104)(348)
Policy liabilities31 306 
Unearned income72 3,282 
Accounts payable and other liabilities(257)18 
Income taxes581 839 
Other, net 1 
Net cash provided by operating activities1,978 6,469 
Investing activities
Purchases of investments(6,103)(7,443)
Proceeds from sale of investments4,898 2,489 
Maturities, calls and redemptions from investments535 3,533 
Changes in securities lending collateral(212)204 
Purchases of subsidiaries, net of cash acquired(1,120)(1,638)
Purchases of property and equipment(279)(301)
Other, net(29)(28)
Net cash used in investing activities(2,310)(3,184)
Financing activities
Proceeds from long-term borrowings 2,574 
Repayments of long-term borrowings (1,908)
Proceeds from short-term borrowings1,350 325 
Changes in securities lending payable212 (205)
Changes in bank overdrafts(586)(291)
Repurchase and retirement of common stock(566)(622)
Cash dividends(379)(351)
Proceeds from issuance of common stock under employee stock plans97 43 
Taxes paid through withholding of common stock under employee stock plans(100)(98)
Other, net4 2 
Net cash used in financing activities32 (531)
Effect of foreign exchange rates on cash and cash equivalents 1 
Change in cash and cash equivalents(300)2,755 
Cash and cash equivalents at beginning of period6,526 7,387 
Cash and cash equivalents at end of period$6,226 $10,142 
See accompanying notes.

-5-


Elevance Health, Inc.
Consolidated Statements of Changes in Equity
(Unaudited)
Total Shareholders’ Equity
 Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Noncontrolling
Interests
Total
Equity
(In millions)Number of
Shares
Par
Value
December 31, 2023233.1 $2 $8,868 $31,749 $(1,313)$99 $39,405 
Net income— — — 2,246 — 3 2,249 
Other comprehensive loss
— — — — (52) (52)
Repurchase and retirement of common stock, including excise tax(1.1)— (44)(525)— — (569)
Dividends and dividend equivalents— — — (382)— — (382)
Issuance of common stock under employee stock plans, net of related tax benefits0.5 — 59  — — 59 
March 31, 2024232.5 $2 $8,883 $33,088 $(1,365)$102 $40,710 
December 31, 2022
238.0 $2 $9,084 $29,647 $(2,490)$87 $36,330 
Net income
— — — 1,989 — 15 2,004 
Other comprehensive income — — — — 440 2 442 
Repurchase and retirement of common stock, including excise tax
(1.3)— (51)(575)— — (626)
Dividends and dividend equivalents— — — (354)— — (354)
Issuance of common stock under employee stock plans, net of related tax benefits
0.4 — 6  — — 6 
Convertible debenture repurchases, conversions and tax adjustments
— — (342)— — — (342)
March 31, 2023237.1 $2 $8,697 $30,707 $(2,050)$104 $37,460 

See accompanying notes.

-6-


Elevance Health, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
March 31, 2024
(In Millions, Except Per Share Data or As Otherwise Stated Herein)
 
1.     Organization
References to the terms “we,” “our,” “us” or “Elevance Health” used throughout these Notes to Consolidated Financial Statements refer to Elevance Health, Inc., an Indiana corporation, and unless the context otherwise requires, its direct and indirect subsidiaries. References to the “states” include the District of Columbia and Puerto Rico unless the context otherwise requires.
Elevance Health is a health company with the purpose of improving the health of humanity. We are one of the largest health insurers in the United States in terms of medical membership, serving over 46 million medical members through our affiliated health plans as of March 31, 2024. We offer a broad spectrum of network-based managed care risk-based plans to Individual, Employer Group, Medicaid and Medicare markets. In addition, we provide a broad array of managed care services to fee-based customers, including claims processing, stop loss insurance, provider network access, medical management, care management, wellness programs, actuarial services and other administrative services. We provide services to the federal government in connection with our Federal Health Products & Services business, which administers the Federal Employees Health Benefits (“FEHB”) Program. We provide an array of specialty services both to customers of our subsidiary health plans and also to unaffiliated health plans, including pharmacy services, dental, vision and supplemental health insurance benefits, as well as integrated health services.
We are an independent licensee of the Blue Cross and Blue Shield Association (“BCBSA”), an association of independent health benefit plans. We serve our members as the Blue Cross licensee for California and as the Blue Cross and Blue Shield (“BCBS”) licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (in the New York City metropolitan area and upstate New York), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.) and Wisconsin. In a majority of these service areas, we do business as Anthem Blue Cross and Anthem Blue Cross and Blue Shield. We also conduct business through arrangements with other BCBS licensees as well as other strategic partners. In addition, we serve members in numerous states as Amerigroup, Freedom Health, HealthSun, MMM, Optimum HealthCare, Simply Healthcare and/or Wellpoint. We are licensed to conduct insurance operations in all 50 states, the District of Columbia and Puerto Rico through our subsidiaries. Through various subsidiaries, we also offer pharmacy services through our CarelonRx business, and other healthcare related services as Carelon Insights, Carelon Health, Carelon Behavioral Health and CareMore.
We have organized our brand portfolio into the following core go-to-market brands:
Anthem Blue Cross/Anthem Blue Cross and Blue Shield — represents our existing Anthem-branded and affiliated Blue Cross and/or Blue Shield licensed plans;
Wellpoint — we are uniting select non-BCBSA licensed Medicare, Medicaid and commercial plans under the Wellpoint name; and
Carelon — this brand brings together our healthcare-related brands and capabilities, including our CarelonRx and Carelon Services businesses, under a single brand name.
Our branding strategy reflects the evolution of our business from a traditional health insurance company to a lifetime, trusted health partner. We report our results of operations in the following four reportable segments: Health Benefits, CarelonRx, Carelon Services and Corporate & Other (our businesses that do not individually meet the quantitative thresholds for an operating segment, as well as corporate expenses not allocated to our other reportable segments). During the fourth quarter of 2023, we moved our Carelon Global Solutions international business from the Corporate & Other reportable segment to the Carelon Services reportable segment. All prior period reportable segment information has been reclassified for comparability to conform to the current presentation. For additional discussion regarding our segments, including the changes made, see Note 15 “Segment Information” included in this Quarterly Report on Form 10-Q.

-7-


2.     Basis of Presentation and Significant Accounting Policies
Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”), unless the information contained in those disclosures materially changed or is required by GAAP. In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three months ended March 31, 2024 and 2023 have been recorded. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024, or any other period. The seasonal nature of portions of our health care and related benefits business, as well as competitive and other market conditions, may cause full-year results to differ from estimates based upon our interim results of operations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K.
Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S. dollar (“USD”). We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period. We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period. The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income.
Cash and Cash Equivalents: We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits, and we have cash and cash equivalents on deposit to meet certain regulatory requirements. These amounts totaled $499 and $294 at March 31, 2024 and December 31, 2023, respectively, and are included in the cash and cash equivalents line on our consolidated balance sheets.
Investments: We classify fixed maturity securities in our investment portfolio as “available-for-sale” and report those securities at fair value. Certain fixed maturity securities are available to support current operations and, accordingly, we classify such investments as current assets without regard to their contractual maturity. Investments used to satisfy contractual, regulatory or other requirements are classified as long-term, without regard to contractual maturity.
If a fixed maturity security is in an unrealized loss position and we have the intent to sell the fixed maturity security, or it is more likely than not that we will have to sell the fixed maturity security before recovery of its amortized cost basis, we write down the fixed maturity security’s cost basis to fair value and record an impairment loss in our consolidated statements of income. For impaired fixed maturity securities that we do not intend to sell or if it is more likely than not that we will not have to sell such securities, but we expect that we will not fully recover the amortized cost basis, we recognize the credit component of the impairment as an allowance for credit loss in our consolidated balance sheets and record an impairment loss in our consolidated statements of income. The non-credit component of the impairment is recognized in accumulated other comprehensive loss. Furthermore, unrealized losses entirely caused by non-credit-related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive loss.
The credit component of an impairment is determined primarily by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting our best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of purchase. For mortgage-backed and asset-backed securities, cash flow estimates are based on assumptions regarding the underlying collateral, including prepayment speeds, vintage, type of underlying asset, geographic concentrations, default rates, recoveries and changes in value. For all other securities, cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings and estimates regarding timing and amount of recoveries associated with a default.
-8-


For asset-backed securities included in fixed maturity securities, we recognize income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities. Such adjustments are reported within net investment income.
The changes in fair value of our marketable equity securities are recognized in our results of operations within net losses on financial instruments. Certain marketable equity securities are held to satisfy contractual obligations and are reported under the caption “Other invested assets” in our consolidated balance sheets.
Mortgage loans on real estate are classified as held for investment and are reported at their amortized cost basis net of allowance under the caption “Other invested assets” in our consolidated balance sheets. Amortized cost is the amount at which the loan is originated, adjusted for accrued interest, amortization of premium, discount and net deferred fees or costs, collection of cash and write-offs.
We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management. The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets.
We use the equity method of accounting for investments in companies in which our ownership interest may enable us to influence the operating or financial decisions of the investee company. Our proportionate share of equity in net income of these unconsolidated affiliates is reported within net investment income. The equity method investments are reported under the caption “Other invested assets” in our consolidated balance sheets.
Investment income is recorded when earned. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold.
We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. We recognize the collateral as an asset, which is reported under the caption “Other current assets” on our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets. Unrealized gains or losses on securities lending collateral are included in accumulated other comprehensive loss as a separate component of shareholders’ equity. The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities’ value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments.
Receivables: Receivables are reported net of amounts for expected credit losses. The allowance for doubtful accounts is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts.
Premium receivables include the uncollected amounts from employer risk-based groups, individuals and government programs for insurance services. Premium receivables are reported net of an allowance for doubtful accounts of $212 at each of March 31, 2024 and December 31, 2023.
Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers for administrative services. Self-funded receivables are reported net of an allowance for doubtful accounts of $89 and $87 at March 31, 2024 and December 31, 2023, respectively.
Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades, accrued investment income and other miscellaneous amounts due to us. These receivables
-9-


are reported net of an allowance for doubtful accounts of $956 and $941 at March 31, 2024 and December 31, 2023, respectively.
Revenue Recognition: For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheet at March 31, 2024 or December 31, 2023. For the three months ended March 31, 2024 and 2023, revenue recognized from performance obligations related to prior periods, such as changes in transaction price, were not material. For contracts that have an original, expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material.
Recently Adopted Accounting Guidance: In November 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application (“ASU 2020-11”). The amendments in ASU 2020-11 changed the effective date and early application of Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, which was issued in November 2018. The amendments in ASU 2020-11 extended the original effective date by one year to our interim and annual reporting periods beginning after December 15, 2022. This standard requires us to review cash flow assumptions for our long-duration insurance contracts at least annually and recognize the effect of changes in future cash flow assumptions in net income. This standard also requires us to update discount rate assumptions quarterly and recognize the effect of changes in these assumptions in other comprehensive income. The rate used to discount our reserves for future policy benefits will be based on an estimate of the yield for an upper-medium grade fixed-income instrument with a duration profile matching that of our liabilities. In addition, this standard changes the amortization method for deferred acquisition costs. We adopted these amendments on January 1, 2023, using the modified retrospective transition method for changes to the liability for future policy benefits and deferred acquisition costs as of the transition date, January 1, 2021. The adoption did not have an overall material impact on our financial statements.
Recent Accounting Guidance Not Yet Adopted: In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740) ("ASU 2023-09"). The amendments in ASU 2023-09 are intended to improve income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for our fiscal year beginning after December 15, 2024. The amendments are to be applied on a prospective basis, although retrospective adoption is permitted. We do not believe the adoption of ASU 2023-09 will have a material impact on our consolidated financial statements or disclosures.
In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in ASU 2023-07 are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our fiscal year beginning after December 15, 2023, and interim periods within our fiscal year beginning after December 15, 2024. The amendments are to be applied retrospectively to all prior periods presented in the financial statements, and upon transition, the significant segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We are currently evaluating the effects the adoption of ASU 2023-07 will have on our consolidated financial statements and related disclosures.
In August 2023, the FASB issued Accounting Standards Update No. 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement (“ASU 2023-05”). ASU 2023-05 clarifies existing guidance to reduce diversity in practice and requires a joint venture to recognize and initially measure its assets and liabilities using a new basis of accounting, at fair value, upon formation. These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. We do not believe the adoption of ASU 2023-05 will have a material impact on our consolidated financial statements and disclosures.
There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2023 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations, cash flows or disclosures.
-10-


3.    Business Acquisitions and Divestitures
Completed Acquisitions
On March 11, 2024, we completed our acquisition of Paragon Healthcare, Inc. (“Paragon”). Paragon, which operates as part of CarelonRx, provides infusion services and injectable therapies through its omnichannel model of ambulatory infusion centers, home infusion pharmacies, and other specialty pharmacy services. This acquisition aligns with our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve. As of March 31, 2024, the purchase price was allocated to the tangible and intangible net assets acquired based on management's initial estimates of their fair values, of which $553 has been allocated to finite-lived intangible assets and $635 to goodwill. The majority of the goodwill is not deductible for income tax purposes. As of March 31, 2024, the initial accounting for the acquisition has not been finalized. The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations.
On February 15, 2023, we completed our acquisition of BioPlus Parent, LLC and subsidiaries (“BioPlus”) from CarepathRx Aggregator, LLC. Prior to the acquisition, BioPlus was one of the largest independent specialty pharmacy organizations in the United States. BioPlus, which operates as part of CarelonRx, seeks to connect payors and providers of specialty pharmaceuticals to meet the medication therapy needs of patients with complex medical conditions. This acquisition aligns with our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve. As of March 31, 2024, the purchase price was allocated to the tangible and intangible net assets acquired based on management’s estimates of their fair values, of which $820 has been allocated to finite-lived intangible assets and $893 to goodwill. Measurement period adjustments during the three months ended March 31, 2024 were $(5). The majority of goodwill is not deductible for income tax purposes. As of March 31, 2024, the initial accounting for the acquisition was finalized. The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations.
Divestiture
On April 1, 2024, we completed the sale of our life and disability businesses to StanCorp Financial Group, Inc. (“The Standard”), a provider of financial protection products and services for employers and individuals. Upon closing, we and The Standard entered into a product distribution partnership. The related net assets held for sale and results of operations for the life and disability businesses to be divested as of and for the three months ending March 31, 2024 were not material.
Pending Acquisitions
On December 31, 2023, we entered into an agreement to acquire Centers Plan for Healthy Living LLC and Centers for Specialty Care Group IPA, LLC (“Centers”). Centers is a managed long-term care plan that serves New York state Medicaid and dually-eligible Medicaid/Medicare members, enabling adults with long-term care needs and disabilities to live safely and independently in their own home. This acquisition aligns with our strategic plan to grow the Health Benefits segment and leverage industry-leading expertise while serving Medicaid and dually eligible populations. The acquisition is expected to close in the third quarter of 2024 and is subject to standard closing conditions and customary approvals.
On January 23, 2023, we announced our entrance into an agreement to acquire Louisiana Health Service & Indemnity Company, d/b/a Blue Cross and Blue Shield of Louisiana, an independent licensee of the BCBSA that provides healthcare plans to the Individual, Employer Group, Medicaid and Medicare markets, primarily in the State of Louisiana. This acquisition aligns with our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve. The acquisition is subject to closing conditions and approvals.

-11-


4.    Business Optimization Initiatives
During the third quarter of 2023, based on a strategic review of our operations, assets and investments, management implemented the “2023-2024 Business Efficiency Program” to enhance operating efficiency, refine the focus of our investments and optimize our physical footprint. The 2023-2024 Business Efficiency Program includes the write-off of certain information technology assets and contract exit costs, a reduction in staff including the relocation of certain job functions, and the impairment of assets associated with the closure or partial closure of data centers and offices. The 2023-2024 Business Efficiency Program is expected to be substantially complete by the end of the third quarter of 2024. Cash outlays associated with this program, which primarily relate to the personnel-related costs, are expected to be paid through 2024.
The ending balances related to the total liabilities for employee termination costs under the 2023-2024 Business Efficiency Program at March 31, 2024 and December 31, 2023 were $150 and $191, respectively, and were recorded in the Corporate & Other reportable segment. During the quarter ended March 31, 2024 there were no charges or releases related to employee termination costs under the 2023-2024 Business Efficiency Program, and payments were $41.
5.     Investments
Fixed Maturity Securities
We evaluate our available-for-sale fixed maturity securities for declines based on qualitative and quantitative factors. We have established an allowance for credit loss and recorded credit loss expense as a reflection of our expected impairment losses. We continue to review our investment portfolios under our impairment review policy. Given the inherent uncertainty of changes in market conditions and the significant judgments involved, there is a continuing risk that declines in fair value may occur and additional material impairment losses for credit losses on investments may be recorded in future periods.
-12-


A summary of current and long-term fixed maturity securities, available-for-sale, at March 31, 2024 and December 31, 2023 is as follows:
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Allowance
For Credit
Losses
Estimated
Fair Value
 
March 31, 2024
Fixed maturity securities:
United States Government securities$1,858 $6 $(73)$ $1,791 
Government sponsored securities127  (4) 123 
Foreign government securities73  (1) 72 
States, municipalities and political subdivisions, tax-exempt3,722 55 (150) 3,627 
Corporate securities16,099 256 (575)(2)15,778 
Residential mortgage-backed securities4,204 27 (302) 3,929 
Commercial mortgage-backed securities1,971 12 (89)(2)1,892 
Other asset-backed securities3,275 28 (105) 3,198 
Total fixed maturity securities$31,329 $384 $(1,299)$(4)$30,410 
December 31, 2023
Fixed maturity securities:
United States Government securities$1,873 $25 $(54)$ $1,844 
Government sponsored securities112 1 (3) 110 
Foreign government securities5 1 (2) 4 
States, municipalities and political subdivisions, tax-exempt3,985 69 (152) 3,902 
Corporate securities14,838 322 (580)(2)14,578 
Residential mortgage-backed securities4,071 40 (279) 3,832 
Commercial mortgage-backed securities2,174 13 (138)(2)2,047 
Other asset-backed securities4,278 25 (130) 4,173 
Total fixed maturity securities$31,336 $496 $(1,338)$(4)$30,490 
Other asset-backed securities primarily consists of collateralized loan obligations and other debt securities.
-13-


For fixed maturity securities in an unrealized loss position at March 31, 2024 and December 31, 2023, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: 
 Less than 12 Months12 Months or Greater
(Securities are whole amounts)Number of
Securities
Estimated
Fair Value
Gross
Unrealized
Loss
Number of
Securities
Estimated
Fair Value
Gross
Unrealized
Loss
March 31, 2024
Fixed maturity securities:
United States Government securities46 $1,188 $(29)48$306 $(44)
Government sponsored securities4 40  3951 (4)
Foreign government securities
5 10  24 (1)
States, municipalities and political subdivisions, tax-exempt231 449 (4)1,0011,656 (146)
Corporate securities906 2,324 (31)2,4225,775 (544)
Residential mortgage-backed securities239 1,026 (14)1,6311,958 (288)
Commercial mortgage-backed securities84 364 (6)4151,059 (83)
Other asset-backed securities126 454 (16)4141,288 (89)
Total fixed maturity securities1,641 $5,855 $(100)5,972$12,097 $(1,199)
December 31, 2023
Fixed maturity securities:
United States Government securities35 $552 $(9)44 $370 $(45)
Government sponsored securities   4052 (3)
Foreign government securities
   24 (2)
States, municipalities and political subdivisions, tax-exempt203354 (2)1,0341,811 (150)
Corporate securities389608 (15)2,6246,871 (565)
Residential mortgage-backed securities
183438 (5)1,6202,075 (274)
Commercial mortgage-backed securities
112353 (6)5341,317 (132)
Other asset-backed securities110394 (18)7612,342 (112)
Total fixed maturity securities1,032 $2,699 $(55)6,659$14,842 $(1,283)
Unrealized losses on our securities shown in the table above have not been recognized into income because, as of March 31, 2024, we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their maturity or anticipated recovery. The declines in fair values are largely due to increasing interest rates driven by the higher rate of inflation and other market conditions.
Allowances for credit losses have been recorded in the amount of $4 at both March 31, 2024 and December 31, 2023, for declines in fair value due to unfavorable changes in the credit quality characteristics that impact our assessment of collectability of principal and interest.


-14-


The amortized cost and fair value of fixed maturity securities at March 31, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations.
Amortized
Cost
Estimated
Fair Value
Due in one year or less$369 $365 
Due after one year through five years6,038 5,900 
Due after five years through ten years11,099 10,864 
Due after ten years7,648 7,460 
Mortgage-backed securities6,175 5,821 
Total fixed maturity securities$31,329 $30,410 
During the three months ended March 31, 2024 and 2023, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $5,401 and $5,410, respectively.
In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to: (i) changes in the investment environment; (ii) expectation that the fair value could deteriorate further; (iii) desire to reduce exposure to an issuer or an industry; (iv) changes in credit quality; or (v) changes in expected cash flow.
All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold.
Equity Securities
A summary of marketable equity securities at March 31, 2024 and December 31, 2023 is as follows:
 March 31, 2024December 31, 2023
Equity securities:
Exchange traded funds$382 $106 
Common equity securities52 45 
Private equity securities77 78 
Total$511 $229 
Other Invested Assets
Other invested assets include primarily our investments in limited partnerships, joint ventures and other non-controlled corporations, mortgage loans and the cash surrender value of corporate-owned life insurance policies. Investments in limited partnerships, joint ventures and other non-controlled corporations are carried at our share in the entities’ undistributed earnings, which approximates fair value. Financial information for certain of these investments is reported on a one or three month lag due to the timing of when we receive financial information from the companies.
On April 12, 2024, we entered into an agreement to partner with Clayton, Dubilier & Rice (“CD&R”) to accelerate innovation in care delivery across multiple regions in the United States by bringing together through a new company, (“NewCo”), certain care delivery and enablement assets of Carelon Management Services Inc., a Carelon Health business (“CMSI Assets”), and two CD&R portfolio businesses, apree health and Millennium Physician Group. Our investment in NewCo will be through a combination of cash, an existing equity investment in apree health, and the contribution of CMSI Assets. We will account for our initial minority ownership interest in NewCo as an equity method investment. Further, in connection with our equity investment, each party will have certain rights and obligations, including certain put, call, and purchase price true-up options, for which the estimated value will be determinable at the time of the incremental investments. The contribution of CMSI Assets and businesses to be contributed by CD&R to NewCo are subject to standard closing conditions and customary approvals.
-15-


Investment (Losses) and Gains
Net investment (losses) and gains for the three months ended March 31, 2024 and 2023 are as follows:
Three Months Ended 
 March 31
20242023
Net (losses) gains:
Fixed maturity securities:
Gross realized gains from sales$22 $10 
Gross realized losses from sales(159)(115)
Impairment losses recognized in income
(2)(7)
Net realized losses from sales of fixed maturity securities(139)(112)
Equity securities:
Unrealized gains (losses) recognized on equity securities still held at the end of the period
2 (1)
Net realized losses recognized on equity securities sold during the period
 (1)
Net gains (losses) on equity securities2 (2)
Other investments:
Gross gains16 27 
Gross losses(20)(1)
Impairment losses recognized in income(25)(3)
Net (losses) gains on other investments
(29)23 
Net losses on investments$(166)$(91)
Accrued Investment Income
At March 31, 2024 and December 31, 2023, accrued investment income totaled $294 and $301, respectively. We recognize accrued investment income under the caption “Other receivables” on our consolidated balance sheets.
Securities Lending Programs
We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. The fair value of the collateral received at the time of the transactions amounted to $2,592 and $2,380 at March 31, 2024 and December 31, 2023, respectively. The value of the collateral represented 102% of the market value of the securities on loan at each of March 31, 2024 and December 31, 2023. We recognize the collateral as an asset under the caption “Other current assets” in our consolidated balance sheets, and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets.
At March 31, 2024 and December 31, 2023, the remaining contractual maturity of our securities lending agreements included overnight and continuous transactions of cash for $2,351 and $2,255, respectively, of United States Government securities for $241 and $99, respectively, and of residential mortgage-backed securities for $0 and $26, respectively.
6.    Derivative Financial Instruments
We primarily invest in the following types of derivative financial instruments: interest rate swaps, futures, forward contracts, put and call options, swaptions, embedded derivatives and warrants. We also enter into master netting agreements, which reduce credit risk by permitting net settlement of transactions.
-16-


We have entered into various interest rate swap contracts to convert a portion of our interest rate exposure on our long-term debt from fixed rates to floating rates. The floating rates payable on all of our fair value hedges are benchmarked to the Secured Overnight Financing Rate (“SOFR”). Any amounts recognized for changes in fair value of these derivatives are included in the captions “Other current assets,” “Other noncurrent assets,” “Other current liabilities” or “Other noncurrent liabilities” in our consolidated balance sheets.
The unrecognized loss for all expired and terminated cash flow hedges included in accumulated other comprehensive loss, net of tax, was $209 and $211 at March 31, 2024 and December 31, 2023, respectively.
During the three months ended March 31, 2024, we recognized gains of $11 and losses of $6, respectively, on non-hedging derivatives. During the three months ended March 31, 2023, we recognized gains of $12 and losses of $34 on non-hedging derivatives, respectively.
For additional information relating to the fair value of our derivative assets and liabilities, see Note 7, “Fair Value,” included in this Quarterly Report on Form 10-Q.
7.    Fair Value
Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. These assets and liabilities are classified into one of three levels of hierarchy defined by GAAP.
For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see Note 7 “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2023 included in Part II, Item 8 of our 2023 Annual Report on Form 10-K.
A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023 is as follows:
-17-


Level ILevel IILevel IIITotal
March 31, 2024
Assets:
Cash equivalents$1,155$$$1,155
Fixed maturity securities, available-for-sale:
United States Government securities1,7911,791
Government sponsored securities123123
Foreign government securities7272
States, municipalities and political subdivisions, tax-exempt3,6273,627
Corporate securities15,7265215,778
Residential mortgage-backed securities3,914153,929
Commercial mortgage-backed securities1,881111,892
Other asset-backed securities2,4787203,198
Total fixed maturity securities, available-for-sale29,61279830,410
Equity securities:
Exchange traded funds382382
Common equity securities153752
Private equity securities7777
Total equity securities3973777511
Other invested assets - common equity securities102102
Securities lending collateral2,5942,594
Derivatives - other assets22
Total assets$1,654$32,245$875$34,774
Percentage of total assets at fair value
5%93%2%100%
Liabilities:
Derivatives - other liabilities$$(61)$$(61)
Total liabilities$$(61)$$(61)
December 31, 2023
Assets:
Cash equivalents$2,210$$$2,210
Fixed maturity securities, available-for-sale:
United States Government securities1,8441,844
Government sponsored securities110110
Foreign government securities44
States, municipalities and political subdivisions, tax-exempt3,9023,902
Corporate securities14,5324614,578
Residential mortgage-backed securities3,83023,832
Commercial mortgage-backed securities2,0472,047
Other asset-backed securities3,6345394,173
Total fixed maturity securities, available-for-sale29,90358730,490
Equity securities:
Exchange traded funds106106
Common equity securities123345
Private equity securities7878
Total equity securities1183378229
Other invested assets - common equity securities111111
Securities lending collateral2,3822,382
Derivatives - other assets1010
Total assets$2,439$32,328$665$35,432
Percentage of total assets at fair value
7%91%2%100%
Liabilities:
Derivatives - other liabilities$$(40)$$(40)
Total liabilities$$(40)$$(40)
-18-


There were no individually material transfers into or out of Level III during the three months ended March 31, 2024 or 2023. There were no adjustments to quoted market prices obtained from the pricing services during the three months ended March 31, 2024 or 2023.
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. As disclosed in Note 3, “Business Acquisitions and Divestitures,” we completed our acquisition of Paragon in the first quarter of 2024 and the acquisition of BioPlus in the first quarter of 2023. The net assets acquired in our acquisitions of Paragon and BioPlus and resulting goodwill and other intangible assets were recorded at fair value primarily using Level III inputs. The majority of tangible assets acquired and liabilities assumed were recorded at their carrying values as of the acquisition date, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in our acquisitions of Paragon and BioPlus were internally estimated based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future. We developed internal estimates for the expected cash flows and discount rate in the present value calculation. Also in 2023, we entered into a shareholder’s agreement which included certain put and call options on our minority interest ownership of Liberty Dental. The resulting net put option liability was recorded at its fair value measured at the date of acquisition using Level III inputs with an election not to mark the derivative to market. Other than the assets acquired and liabilities assumed in our acquisitions of Paragon and BioPlus and the net put option on Liberty Dental, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2024 or 2023.
In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in our consolidated balance sheets.
Non-financial instruments such as property and equipment, other current assets, deferred income taxes, intangible assets and certain financial instruments, such as policy liabilities, are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value.
The carrying amounts reported in the consolidated balance sheets for cash, premium receivables, self-funded receivables, other receivables, unearned income, accounts payable and accrued expenses, and certain other current liabilities approximate fair value because of the short-term nature of these items. These assets and liabilities are not listed in the table below.
See Note 7 “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2023 included in Part II, Item 8 of our 2023 Annual Report on Form 10-K for details on the methods and assumptions used to estimate the fair value of each class of financial instrument that is recorded at its carrying value in our consolidated balance sheets.
-19-


A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at March 31, 2024 and December 31, 2023 is as follows:
 Carrying
Value
Estimated Fair Value
 Level ILevel IILevel IIITotal
March 31, 2024
Assets:
Other invested assets$6,611 $ $ $6,580 $6,580 
Liabilities:
Debt:
Short-term borrowings225  225  225 
Commercial paper
1,350  1,350  1,350 
Notes24,876  23,046  23,046 
December 31, 2023
Assets:
Other invested assets$5,996 $ $ $5,972 $5,972 
Liabilities:
Debt:
Short-term borrowings225  225  225 
Notes24,895  23,569  23,569 
8.     Income Taxes
During the three months ended March 31, 2024 and 2023, we recognized income tax expense of $690 and $615, respectively, which represent an effective income tax rate of 23.5% for both periods.
Income taxes payable totaled $38 at March 31, 2024 and income taxes receivable totaled $543 at December 31, 2023. We recognize the income tax payable as a liability under the caption “Other current liabilities” and the income tax receivable as an asset under the caption “Other current assets” in our consolidated balance sheets.
-20-


9. Medical Claims Payable
A reconciliation of the beginning and ending balances for medical claims payable for the three months ended March 31, 2024 and 2023 is as follows:
20242023
Gross medical claims payable, beginning of period$15,865 $15,348 
Ceded medical claims payable, beginning of period(7)(6)
Net medical claims payable, beginning of period15,858 15,342 
Net incurred medical claims:
Current period30,708 30,751 
Prior periods redundancies(1,205)(1,068)
Total net incurred medical claims29,503 29,683 
Net payments attributable to:
Current period medical claims19,580 19,948 
Prior periods medical claims9,606 9,593 
Total net payments29,186 29,541 
Net medical claims payable, end of period16,175 15,484 
Ceded medical claims payable, end of period8 7 
Gross medical claims payable, end of period$16,183 $15,491 
At March 31, 2024, the total of net incurred but not reported liabilities plus expected development on reported claims was $724, $4,323 and $11,128 for the claim years 2022 and prior, 2023 and 2024, respectively.
The favorable development recognized in the three months ended March 31, 2024 resulted from faster than expected development of completion factors from the latter part of 2023 as well as trend factors in late 2023 developing more favorably than originally expected. The favorable development recognized in the three months ended March 31, 2023 resulted primarily from trend factors in late 2022 developing more favorably than expected and favorable development in the completion factors resulting from the latter part of 2022 developing faster than expected.
The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the three months ended March 31, 2024 and 2023 is as follows:
20242023
Total net incurred medical claims$29,503 $29,683 
Quality improvement and other claims expense1,043 1,103 
Benefit expense$30,546 $30,786 
The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheet, as of March 31, 2024 is as follows:
Total
Net medical claims payable, end of period$16,175 
Ceded medical claims payable, end of period8 
Insurance lines other than short duration276 
Gross medical claims payable, end of period$16,459 
-21-


10.     Debt
We generally issue senior unsecured notes for long-term borrowing purposes. At March 31, 2024 and December 31, 2023, we had $24,851 and $24,870, respectively, outstanding under these notes.
We have an unsecured surplus note with an outstanding principal balance of $25 at both March 31, 2024 and December 31, 2023.
We have a senior revolving credit facility (the “5-Year Facility”) with a group of lenders for general corporate purposes. The 5-Year Facility provides credit of up to $4,000 and matures in April 2027. Our ability to borrow under the 5-Year Facility is subject to compliance with certain covenants, including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60%, subject to increase in certain circumstances set forth in the credit agreement for the 5-Year Facility. As of March 31, 2024, our debt-to-capital ratio, as defined and calculated under the 5-Year Facility, was 39.4%. We do not believe the restrictions contained in our 5-Year Facility covenants materially affect our financial or operating flexibility. As of March 31, 2024, we were in compliance with all of our debt covenants under the 5-Year Facility. There were no amounts outstanding under the 5-Year Facility at any time during the three months ended March 31, 2024 or the year ended December 31, 2023.
We have an authorized commercial paper program of up to $4,000, the proceeds of which may be used for general corporate purposes. At March 31, 2024 and December 31, 2023, we had $1,350 and $0, respectively, outstanding under this program. Beginning June 30, 2023, we have reclassified our commercial paper balances from long-term debt to short-term debt as our intent is to not replace short-term commercial paper outstanding at expiration with additional short-term commercial paper for an uninterrupted period extending for more than one year.
We are a member, through certain subsidiaries, of the Federal Home Loan Bank of Indianapolis, the Federal Home Loan Bank of Cincinnati, the Federal Home Loan Bank of Atlanta and the Federal Home Loan Bank of New York (collectively, the “FHLBs”). As a member, we have the ability to obtain short-term cash advances, subject to certain minimum collateral requirements. We had $225 of outstanding short-term borrowings from the FHLBs at each of March 31, 2024 and December 31, 2023.
All debt is a direct obligation of Elevance Health, Inc., except for the surplus note and the FHLBs borrowings.
11.     Commitments and Contingencies
Litigation and Regulatory Proceedings
We are defendants in, or parties to, a number of pending or threatened legal actions or proceedings. To the extent a plaintiff or plaintiffs in the following cases have specified in their complaint or in other court filings the amount of damages being sought, we have noted those alleged damages in the descriptions below.
Where available information indicates that it is probable that a loss has been incurred as of the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many proceedings, however, it is difficult to determine whether any loss is probable or reasonably possible. In addition, even where loss is possible or probable or an exposure to loss exists in excess of the liability already accrued with respect to a previously identified loss contingency, it is not always possible to reasonably estimate the amount of the possible or probable loss or range of losses in excess of the amount, if any, accrued, for various reasons, including but not limited to some or all of the following: (i) there are novel or unsettled legal issues presented, (ii) the proceedings are in early stages, (iii) there is uncertainty as to the likelihood of a class being certified or decertified or the ultimate size and scope of the class, (iv) there is uncertainty as to the outcome of pending appeals or motions, (v) there are significant factual issues to be resolved, and/or (vi) in many cases, the plaintiffs have not specified damages in their complaint or in court filings.
With respect to the cases described below, we contest liability and/or the amount of damages in each matter, and we believe we have meritorious defenses. We do not believe the outcome of any known pending or threatened legal actions or proceedings will, in the aggregate, have a material impact on our financial position. However, unanticipated outcomes do
-22-


sometimes occur, which could result in liabilities in excess of our accruals and could have a material adverse effect on our consolidated financial position or results of operations.
In addition to the lawsuits described below, we are also involved in other pending and threatened litigation of the character incidental to our business and are from time to time involved as a party in various governmental investigations, audits, reviews and administrative proceedings (“government actions”). These government actions include routine and special inquiries by and disclosures to state insurance departments, state attorneys general, U.S. Regulatory Agencies, the U.S. Attorney General and subcommittees of the U.S. Congress. Such government actions could result in the imposition of civil or criminal fines, penalties, other sanctions and additional rules, regulations or other restrictions on our business operations. Any liability that may result from any one of these government actions, or in the aggregate, could have a material adverse effect on our consolidated financial position or results of operations.