Elevance Health’s Profits Eclipse $1.1 Billion Despite Rising Costs
Elevance Health Reports Strong Third Quarter Earnings Despite Rising Costs
Elevance Health Tuesday said third quarter net income rose to nearly $1.2 billion despite rising costs in its government subsidized health insurance plans, the company announced Oct. 21, 2025.
Elevance Health
Elevance Health announced on Tuesday that its third quarter net income reached almost $1.2 billion, showcasing strong financial performance even in the face of escalating costs within its government subsidized health insurance plans.
As the nation’s second-largest health insurer after UnitedHealth Group’s UnitedHealthcare, Elevance Health is renowned for its management of Anthem brand Blue Cross and Blue Shield plans across 14 states. The company also oversees Medicaid programs through state contracts and offers individual coverage under the Affordable Care Act (ACA). Additionally, Elevance has a growing Carelon healthcare services division.
Similar to its competitors in the industry, Elevance has been grappling with increasing medical expenses from its health plan members. Despite these challenges, the company’s third-quarter results reflected costs that, while higher, were largely anticipated and manageable.
Net income surged by 17.8% to $1.18 billion in the third quarter ending on Sept. 30, compared to $1 billion in the corresponding period last year. Total revenues also saw a significant uptick, rising by 12.4% to $50.7 billion.
Elevance, like other health insurers, is experiencing a rise in benefit expenses. The company reported a benefit expense ratio of 91.3%, marking a 180 basis point increase year-over-year. This increase was primarily attributed to elevated costs in the Medicare business, particularly in Part D benefits, influenced by changes introduced in the Inflation Reduction Act.
Commenting on the results, Elevance Health CEO Gail Boudreaux emphasized the company’s commitment to affordability and enhancing the member experience through value-based care partnerships and AI-driven digital solutions. Looking ahead to 2026, Boudreaux underscored the importance of maintaining discipline in managing operations to drive long-term growth and value creation.
In the third quarter, Elevance reported a 12% increase in operating revenue to $50.1 billion, driven by higher premium yields in health benefits segments, recent acquisitions, and growth in Medicare Advantage membership. The company also noted ongoing Medicaid membership losses due to eligibility reverifications.
Despite a slight decline in health plan membership, with 45.4 million members at the end of the third quarter, Elevance remains focused on expanding its Carelon health services business, including the pharmacy benefit management arm, CarelonRx.
