Elevance Cuts Profit Outlook as Costs Surge

Elevance Health became the fourth major U.S. health insurer to lower its full-year profit forecast, citing persistently high medical costs in its Medicaid and Affordable Care Act (ACA) businesses. In the second quarter of 2025, Elevance reported adjusted earnings per share of $8.84, missing analyst expectations, and a 14.3% year-over-year increase in operating revenue to $49.4 billion. The company reduced its annual adjusted earnings forecast to about $30 per share from a previous range of $34.15–$34.85, and now anticipates a full-year medical loss ratio near 90%. Elevated costs and profit warnings have also impacted peers such as UnitedHealth, Centene, and Molina Healthcare, triggering declines in health insurance stocks. Executives emphasized that these challenges are industry-wide and are expected to continue into 2026, driven by increased healthcare utilization and new regulatory pressures. The results highlight ongoing difficulties in controlling costs for government-backed health programs.