Elevance Health, Inc.

Elevance Health, Inc. is one of the largest health insurers in the United States, serving approximately 45.4 million medical members through affiliated Blue Cross Blue Shield plans across 14 states, with an additional national footprint in pharmacy benefits, specialty healthcare services, and government programs. The company generated $199.1 billion in revenue in fiscal 2025, making it the second-largest health insurer by membership and revenue after UnitedHealth Group.

This is a story about a sprawling incumbent navigating a difficult post-pandemic normalization. Elevance Health — rebranded from Anthem in 2022 — has spent the last several years transforming from a federation of regional Blue Cross plans into an integrated payer-services platform, adding pharmacy benefit management (CarelonRx), home-based care (CareBridge), and a suite of risk-based clinical services under the Carelon umbrella. That transformation coincided with a brutal period for the government books: Medicaid redeterminations have eroded membership and strained margins, Medicare Advantage required an abrupt portfolio restructuring, and a CMS risk adjustment dispute now hangs over the company with a $935 million accrual. The stock trades at roughly 16.5 times trailing earnings, a discount to its own five-year average and to UnitedHealth, reflecting the market's uncertainty about whether management can execute the multi-year repair job it has laid out. The file turns on a straightforward question: does the margin trough in 2025-26 represent a cyclical low that disciplined execution and a diversified platform can lift, or is it the new normal for a business whose government exposure makes it structurally different from the managed-care peers it once traded in line with?