Elevance Health Profits Hit $1.1B Amid Rising Costs
TL/DR –
Elevance Health announced that its Q3 net income rose to nearly $1.2 billion despite increasing costs in its government-subsidized health insurance plans such as Medicare Advantage. The company’s net income rose 17.8% to $1.18 billion compared to $1 billion the previous year, with total revenues up 12.4% to $50.7 billion. However, Elevance is experiencing higher benefit expenses, reporting a benefit expense ratio of 91.3%, an increase of 180 basis points year over year, reflecting higher costs mainly in its Medicare business.
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Elevance Health Records Rising Q3 Revenue Amid Growing Operational Costs
On October 21, 2025, Elevance Health unveiled that despite the rising costs of its government-funded health insurance plans, its third quarter net income surged to nearly $1.2 billion. Just like several other competitors in the sector, the firm has been trying to manage increasing medical expenses incurred by its health scheme members.
Surge in Expenses but Within Expected Limits
The firm, however, maintained that the rising costs were within expected limits, terming them as “elevated, but expected”. Elevance occupies the second position among health insurers in the United States, trailing behind UnitedHealth Group’s UnitedHealthcare. It is recognized for operating Anthem brand Blue Cross and Blue Shield plans across fourteen states.
Impressive Q3 Financial Results
The company’s net income saw a rise of 17.8% amounting to $1.18 billion in the third quarter which ended on September 30, compared to $1 billion recorded in the corresponding period of the previous year. Total revenues also rose by 12.4% to $50.7 billion.
Higher Benefit Expenses
Like other health insurance plans, Elevance is also grappling with higher benefits expenses. The benefit expense ratio, which is the percentage of premium revenue that is used for medical costs, was 91.3%, an increase of 180 basis points compared to the previous year.
CEO’s Remarks on Q3 Results
Commenting on the Q3 results, Elevance Health chief executive officer Gail Boudreaux stated, “Our third quarter results were in line with expectations and reflect disciplined execution across Elevance Health. In a dynamic healthcare environment, we’re focused on advancing affordability and elevating the member experience through our growing value-based care partnerships and AI-enabled digital solutions.”
Q3 Operating Revenue
The operating revenue of Elevance was up by 12% to $50.1 billion in the third quarter. However, the period ended with 45.4 million health plan members, a slight decrease compared to the same period in the preceding year.
Growth of Carelon Health Services Business
Meanwhile, the company’s Carelon health services business, which includes the pharmacy benefit management company CarelonRx grew by 33% with an operating revenue of $18.3 billion, thanks to “recent acquisitions in home health and pharmacy services.”
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