Elevance Health (NYSE: ELV) is seeing the benefits as it continues to expand its in-home service line.
According to the third-quarter financial results of Careon, Elevance's healthcare services division, operating revenue for the third quarter increased by $4.5 billion compared to the same period last year. One of the drivers of this growth is the acquisition of home health services, the acquisition of pharmacy services, the growth of CarelonRx, and the expansion of Carelon Services' risk-based solutions.
Elevance President and CEO Gail K. Boudreau said the company is looking to expand its value-based arrangements as it expands its in-home service offerings.
“Careron is expanding our external relationships, expanding our pharmacy, behavioral health, specialty care, administrative and home services, and embedding value-based care principles throughout,” Boudreau said during the company's third-quarter earnings call on Tuesday.
Company executives have previously said home health care is “critical” to driving the company's overall health strategy. Elevance's previous home health acquisitions include the acquisition of home health care provider CareBridge in 2024 and the acquisition of intravenous services company Paragon Healthcare in 2024.
Carelon's third quarter operating revenue reached $18.3 billion, an increase of 33% year over year. Overall, Elevance had operating revenue of $50.1 billion in the third quarter, an increase of 12% year over year.
Elevance's third quarter operating revenue increase was driven by an increase in the company's Medicare Advantage (MA) membership. MA's growth was partially offset by the ongoing Medicaid revalidation, according to the company's chief financial officer, Mark Kaye.
Kay said Elevance's medical membership reached 45.4 million in the third quarter. Medicaid disenrollment is concentrated among members with low acuity and is driven by increasingly stringent eligibility screening and changes to state reverification processes, he continued.
“Our strategy for 2026 reflects a very disciplined focus on sustainable performance over the long term,” Boudreau said of the company's Medicare Advantage program. “So we looked to the future of the Medicare Advantage program and approached select plans and service areas where we didn't think there was an opportunity to see sustainable performance over the long term. … We work closely with individuals who have put their employment on hold to ensure they find the right plan for them.”
