STAT+: Elevance plots a Medicaid retreat as costs remain high

STAT PlusInsurance Elevance plots a Medicaid retreat as costs remain high Plan comes as states prepare to roll out work requirements for the program Manage alerts for this article Email this article Share this article By Tara BannowJuly 15, 2026 Hospitals and Insurance Reporter Tara Bannow[email protected]Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70. The country’s second-biggest health insurer said Wednesday it plans to further shrink its Medicaid portfolio in the coming year, just as states roll out requirements for the program that covers low-income Americans. Elevance Health made the announcement on its second-quarter earnings call, in which the company raised its profit outlook and surpassed analysts’ expectations for both profit and revenue. The company posted about $50 billion in revenue in the quarter, which ended June 30, and $1.5 billion in profit to shareholders, down 16% year over year. Advertisement The details were slim, despite several analysts’ prodding on the call: only that the company will exit Medicaid markets it deems unsustainable over the next 12 to 18 months, much like it just did in Washington, D.C. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — and get additional analysis of the financial innards of our health care system — by subscribing to STAT+. Already have an account? Log in Monthly $39 Totals $468 per year $39/month Get Started Totals $468 per year Starter $30 for 3 months, then $399/year $30 for 3 months Get Started Then $399/year Annual $399 Save 15% $399/year Get Started Save 15% 11+ Users Custom Savings start at 25%! Request A Quote Request A Quote Savings start at 25%! 2-10 Users $300 Annually per user $300/year Get Started $300 Annually per user View All Plans To read the rest of this story subscribe to STAT+. Subscribe Log In health care costs, Health insurance, Medicaid, STAT+ Submit a correction requestReprints Tara Bannow Hospitals and Insurance Reporter Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70. Newsletter Unpacking the business — and secretive inner workings — of the U.S. health care industry Recommended Exclusive July 15, 2026 STAT Plus: Medicare Advantage insurers face new bipartisan scrutiny over AI and care denials Health tech July 15, 2026 STAT Plus: Swing Therapeutics acquired by medical VR platform XR Health Advertisement Business July 14, 2026 STAT Plus: Hospital chain HCA warns of lower profits as more patients go uninsured Health July 13, 2026 STAT Plus: Dementia study replicates promising outcomes following risk-reduction strategies Health Care Inc. Newsletter July 13, 2026 STAT Plus: UnitedHealth’s questionable review, and more MA stars lawsuits Subscriber Picks