Business Context and Reporting Period
This Form 8-K is a current report filed by Anthem, Inc. (now Elevance Health, Inc.) on June 17, 2019. The filing serves as a Regulation FD disclosure regarding upcoming investor communications scheduled between June 18, 2019, and June 28, 2019.
Key Financial Metrics
The filing does not provide historical revenue, profit, cash flow, margin, debt, or liquidity figures for the current or prior periods. It focuses exclusively on forward-looking earnings guidance.
- Full Year 2019 Net Income Guidance: Greater than $18.27 per share.
- Unfavorable Items: Approximately $0.93 per share included in the net income guidance.
- Adjusted Net Income Guidance: Greater than $19.20 per share (excluding the unfavorable items).
Material Changes
The filing does not report material changes to financial results compared to prior periods. It states that the guidance reaffirmed does not include any adjustment items beyond those reported in the Company's first quarter 2019 earnings release.
Guidance, Outlook, and Risks
Management intends to reaffirm the full-year 2019 net income guidance during investor meetings. The filing includes extensive forward-looking statements subject to significant risks and uncertainties, including:
- Regulatory Environment: Changes to the Affordable Care Act (ACA) and outcomes of legal challenges.
- Operational Risks: Healthcare cost trends, provider contracting, premium rate approvals, and enrollment levels.
- Legal and Litigation: Ongoing litigation with Cigna Corporation regarding the failed merger agreement, including potential termination fees and damages.
- Pharmacy Benefit Management: Risks related to agreements with Express Scripts and the transition to CVS Health.
- Other Risks: Data security breaches, CMS Star ratings, capital requirements, and general economic conditions.
Investor Verification Checklist
- Verify the specific nature and magnitude of the $0.93 per share in net unfavorable items referenced in the guidance.
- Review the status and potential financial impact of the litigation between Anthem and Cigna Corporation.
- Confirm the progress and risks associated with the transition of pharmacy benefit management services from Express Scripts to CVS Health.
- Monitor regulatory developments regarding the ACA and their potential effect on premium rates and enrollment.