Elevance Health to Exit Unsustainable Medicaid Markets Over Next 12-18 Months

Elevance Health, the nation's second-largest insurer, said on its Q2 earnings call it will further reduce its Medicaid business in the coming year.

The move comes as several states are preparing to implement work-requirement rules for Medicaid, and Elevance indicated it will exit markets it deems financially unsustainable within 12 to 18 months, following a recent withdrawal from Washington, D.C.

Despite the retreat, the company raised its profit outlook and beat analysts' expectations, reporting roughly $50 billion in revenue and $1.5 billion in profit for the quarter, though profit to shareholders fell 16% year-over-year.

Analysts noted the details were limited, but the strategy signals Elevance's focus on profitability amid rising Medicaid costs.