Elevance Health Inc., the parent company of Anthem, Wellpoint, and Carelon, saw its stock plummet to a four-year low after announcing a lowered full-year profit outlook. The reason behind this drop? Rising Medicaid and Obamacare costs that are expected to continue pressing on the company in the near term.
The CEO stated that despite revenue exceeding forecasts for the second quarter, the pressure from rising healthcare costs cannot be assumed to subside soon. This has led to a decrease in investor confidence, causing Elevance Health’s stock to decline.
It’s worth noting that this is not the first time Elevance Health has missed its profit expectations. The company had previously done so three times in the past four quarters, indicating a pattern of underperformance. As the healthcare industry continues to face challenges from rising costs, it will be interesting to see how Elevance Health adapts and responds to these pressures.
Source: https://www.marketwatch.com/story/medicaid-aca-costs-will-keep-rising-and-this-insurers-stock-is-tumbling-c596c833