Elevance Health Falls as Medical Costs Show Signs of Rising
- Elevance drops top end of long-term earnings growth target
- Pressure in Medicaid business hits other insurers’ shares
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Elevance Health Inc.’s shares fell the most in over a year Wednesday after management warned medical costs will likely be at the higher end of what they’d previously forecast for the year.
The health insurance giant posted solid second-quarter results, but emerging pressure in Medicaid appeared to spook investors. Elevance’s Chief Financial Officer Mark Kaye said on a call with analysts that he expects Medicaid expenses to rise this year.