Elevance Health Reduces Medicare Footprint, Exits Standalone Part D Plans for Profitability

Core Insights - Elevance Health Inc. is recognized as one of the best inexpensive stocks to buy according to hedge funds [1] - The company is reducing its Medicare footprint to enhance profitability, particularly in its Medicare Advantage and standalone Medicare Part D plans [1][2] Group 1: Strategic Decisions - Elevance's CFO announced at the Wells Fargo Healthcare Conference that the company will exit certain Medicare Advantage plans with unsustainable long-term economics, impacting approximately 150,000 of its 2.3 million MA members [2][3] - The company is fully exiting the standalone Medicare Part D plan market, where it is the sixth-largest provider with 400,000 members, to focus on higher-margin Medicare Advantage and dual special needs plans [3] Group 2: Market Position - Elevance is the fourth-largest Medicare Advantage payer in the US and is prioritizing plans with narrower networks, such as Health Maintenance Organizations, to help members manage costs [3]