Story perspectives
Elevance Health Faces Medicaid Costs Surge, Shares Dip
10/22/2025
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Story summary
- Elevance Health announced on October 21 that Medicaid costs will stay high into 2027.
- The outlook overshadowed the third-quarter profit that exceeded expectations, causing shares to drop 4%.
- CFO Mark Kaye said 2026 will be the lowest point for Medicaid profitability.
- The company expects higher costs in the fourth quarter as members use benefits before changes.
- Elevance Health reaffirmed its 2025 profit forecast of about $30 per share.
