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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the Quarterly Period Ended March 31,2025ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF

2、 1934For the transition period from to Commission file number:001-16751 ELEVANCE HEALTH,INC.(Exact name of registrant as specified in its charter)Indiana 35-2145715(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification Number)220 Virginia Avenue Indianapolis,India

3、na 46204(Address of principal executive offices)(Zip Code)Registrants telephone number,including area code:(833)401-1577 Not Applicable(Former name,former address and former fiscal year,if changed since last report)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading

4、symbol(s)Name of each exchange on which registeredCommon Stock,$0.01 par valueELVNew York Stock ExchangeIndicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such

5、shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

6、 Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting

7、company,or an emerging growth company.See the definitions of“large accelerated filer”,“accelerated filer”,“smaller reporting company”,and“emerging growth company”in Rule 12b-2 of the Exchange Act:Large accelerated filer Accelerated filerNon-accelerated filer Smaller reporting companyEmerging growth

8、companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant

9、 is a shell company(as defined in Rule 12b-2 of the Exchange Act)Yes No As of April 16,2025,225,934,600 shares of the Registrants Common Stock were outstanding.Elevance Health,Inc.Quarterly Report on Form 10-QFor the Period Ended March 31,2025 Table of Contents PagePART I.FINANCIAL INFORMATIONITEM 1

10、.FINANCIAL STATEMENTSConsolidated Balance Sheets as of March 31,2025(Unaudited)and December 31,2024 .2Consolidated Statements of Income(Unaudited)for the Three Months Ended March 31,2025 and 2024 .3Consolidated Statements of Comprehensive Income(Unaudited)for the Three Months Ended March 31,2025 and

11、 2024 .4Consolidated Statements of Cash Flows(Unaudited)for the Three Months Ended March 31,2025 and 2024 .5Consolidated Statements of Changes in Equity(Unaudited)for the Three Months Ended March 31,2025 and 2024 .6Notes to Consolidated Financial Statements(Unaudited).7ITEM 2.MANAGEMENTS DISCUSSION

12、AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS .35ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK .50ITEM 4.CONTROLS AND PROCEDURES .50PART II.OTHER INFORMATIONITEM 1.LEGAL PROCEEDINGS .50ITEM 1A.RISK FACTORS .50ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE

13、OF PROCEEDS .51ITEM 3.DEFAULTS UPON SENIOR SECURITIES .51ITEM 4.MINE SAFETY DISCLOSURES .51ITEM 5.OTHER INFORMATION .51ITEM 6.EXHIBITS .52SIGNATURES .53-1-PART I.FINANCIAL INFORMATIONITEM 1.FINANCIAL STATEMENTSElevance Health,Inc.Consolidated Balance SheetsMarch 31,2025December 31,2024(Unaudited)(In

14、 millions,except share and per share data)AssetsCurrent assets:Cash and cash equivalents$7,500$8,288 Fixed maturity securities(amortized cost of$25,813 and$25,879;allowance for credit losses of$7 and$6)25,437 25,201 Equity securities 715 1,192 Premium receivables 10,359 8,011 Self-funded receivables

15、 5,246 5,044 Other receivables 6,576 6,016 Other current assets 5,288 4,700 Assets held for sale 490 Total current assets 61,121 58,942 Long-term investments:Fixed maturity securities(amortized cost of$1,070 and$1,049;allowance for credit losses of$0 and$0)1,060 1,035 Other invested assets 10,167 9,

16、749 Property and equipment,net 4,617 4,652 Goodwill 28,420 28,277 Other intangible assets 11,940 12,094 Other noncurrent assets 2,392 2,140 Total assets$119,717$116,889 Liabilities and equityLiabilitiesCurrent liabilities:Medical claims payable$16,812$15,746 Other policyholder liabilities 3,796 4,20

17、4 Unearned income 1,640 1,508 Accounts payable and accrued expenses 7,131 6,927 Short-term borrowings 250 365 Current portion of long-term debt 1,643 1,649 Other current liabilities 11,426 10,029 Liabilities held for sale 153 Total current liabilities 42,698 40,581 Long-term debt,less current portio

18、n 28,110 29,218 Reserves for future policy benefits 174 190 Deferred tax liabilities,net 2,121 2,148 Other noncurrent liabilities 3,994 3,326 Total liabilities 77,097 75,463 Commitments and contingencies Note 11Shareholders equityPreferred stock,without par value,shares authorized 100,000,000;shares

19、 issued and outstanding none Common stock,par value$0.01,shares authorized 900,000,000;shares issued and outstanding 225,641,361 and 227,479,695 2 2 Additional paid-in capital 8,866 8,911 Retained earnings 34,546 33,549 Accumulated other comprehensive loss(911)(1,147)Total shareholders equity 42,503

20、 41,315 Noncontrolling interests 117 111 Total equity 42,620 41,426 Total liabilities and equity$119,717$116,889 See accompanying notes.-2-Elevance Health,Inc.Consolidated Statements of Income(Unaudited)Three Months Ended March 3120252024(In millions,except per share data)RevenuesPremiums$40,887$35,

21、696 Product revenue 5,809 4,499 Service fees 2,069 2,078 Total operating revenue 48,765 42,273 Net investment income 590 465 Net losses on financial instruments(464)(161)Total revenues 48,891 42,577 ExpensesBenefit expense 35,312 30,546 Cost of products sold 4,983 3,825 Operating expense 5,300 4,886

22、 Interest expense 344 265 Amortization of other intangible assets 155 116 Total expenses 46,094 39,638 Income before income tax expense 2,797 2,939 Income tax expense 613 690 Net income 2,184 2,249 Net income attributable to noncontrolling interests(1)(3)Shareholders net income$2,183$2,246 Sharehold

23、ers net income per shareBasic$9.64$9.65 Diluted$9.61$9.59 Dividends per share$1.71$1.63 See accompanying notes.-3-Elevance Health,Inc.Consolidated Statements of Comprehensive Income(Unaudited)Three Months Ended March 3120252024(In millions)Net income$2,184$2,249 Other comprehensive income(loss),net

24、of tax:Change in net unrealized losses/gains on investments 235 (56)Change in non-credit component of impairment losses on investments 1 Change in net unrealized gains/losses on cash flow hedges 5 2 Change in net periodic pension and postretirement costs(5)4 Change in future policy benefits (2)Forei

25、gn currency translation adjustments 1 Other comprehensive income(loss)237 (52)Net loss attributable to noncontrolling interests(1)(3)Other comprehensive income attributable to noncontrolling interests(1)Total shareholders comprehensive income$2,419$2,194 See accompanying notes.-4-Elevance Health,Inc

26、.Consolidated Statements of Cash Flows(Unaudited)Three Months Ended March 3120252024(In millions)Operating activitiesNet income$2,184$2,249 Adjustments to reconcile net income to net cash provided by operating activities:Net losses on financial instruments 464 161 Equity in net(earnings)losses of ot

27、her invested assets(126)27 Depreciation and amortization 373 331 Deferred income taxes(174)136 Share-based compensation 81 62 Changes in operating assets and liabilities:Receivables,net(3,174)(282)Other invested assets(5)(29)Other assets(647)(1,104)Policy liabilities 600 31 Unearned income 132 72 Ac

28、counts payable and other liabilities 952 (257)Income taxes 357 581 Net cash provided by operating activities 1,017 1,978 Investing activitiesPurchases of investments(3,964)(6,103)Proceeds from sale of investments 4,150 4,898 Maturities,calls and redemptions from investments 424 535 Changes in securi

29、ties lending collateral(290)(212)Purchases of subsidiaries,net of cash acquired 4 (1,120)Purchases of property and equipment(196)(279)Other,net(25)(29)Net cash provided by(used in)investing activities 103 (2,310)Financing activitiesRepayments of long-term borrowings(1,250)Proceeds from short-term bo

30、rrowings 1,350 Repayments of short-term borrowings(115)Changes in securities lending payable 290 212 Changes in bank overdrafts 546 (586)Repurchase and retirement of common stock(880)(566)Cash dividends(386)(379)Proceeds from issuance of common stock under employee stock plans 23 97 Taxes paid throu

31、gh withholding of common stock under employee stock plans(123)(100)Other,net(14)4 Net cash provided by(used in)financing activities(1,909)32 Effect of foreign exchange rates on cash and cash equivalents 1 Change in cash and cash equivalents(788)(300)Cash and cash equivalents at beginning of period 8

32、,288 6,526 Cash and cash equivalents at end of period$7,500$6,226 See accompanying notes.-5-Elevance Health,Inc.Consolidated Statements of Changes in Equity(Unaudited)Total Shareholders Equity Common StockAdditionalPaid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveLossNoncontrolling Interes

33、tsTotalEquity(In millions)Number ofSharesParValueDecember 31,2024 227.5$2$8,911$33,549$(1,147)$111$41,426 Net income 2,183 1 2,184 Other comprehensive loss 236 1 237 Noncontrolling interests adjustment 4 4 Repurchase and retirement of common stock,including excise tax (2.2)(97)(799)(896)Dividends an

34、d dividend equivalents (387)(387)Issuance of common stock under employee stock plans,net of related tax benefits 0.4 52 52 March 31,2025 225.7$2$8,866$34,546$(911)$117$42,620 December 31,2023 233.1$2$8,868$31,749$(1,313)$99$39,405 Net income 2,246 3 2,249 Other comprehensive loss (52)(52)Repurchase

35、and retirement of common stock,including excise tax (1.1)(44)(525)(569)Dividends and dividend equivalents (382)(382)Issuance of common stock under employee stock plans,net of related tax benefits 0.5 59 59 March 31,2024 232.5$2$8,883$33,088$(1,365)$102$40,710 See accompanying notes.-6-Elevance Healt

36、h,Inc.Notes to Consolidated Financial Statements(Unaudited)March 31,2025(In Millions,Except Per Share Data or As Otherwise Stated Herein)1.OrganizationReferences to the terms“we,”“our,”“us”or“Elevance Health”used throughout these Notes to Consolidated Financial Statements refer to Elevance Health,In

37、c.,an Indiana corporation,and unless the context otherwise requires,its direct and indirect subsidiaries.References to the“states”include the District of Columbia and Puerto Rico unless the context otherwise requires.Elevance Health is a health company with the purpose of improving the health of hum

38、anity.We are one of the largest health insurers in the United States in terms of medical membership,serving approximately 45.8 million medical members through our affiliated health plans as of March 31,2025.We offer a broad spectrum of network-based managed care risk-based plans to Individual,Employ

39、er Group,Medicaid and Medicare markets.In addition,we provide a broad array of managed care services to fee-based customers,including claims processing,stop loss insurance,provider network access,medical management,care management,wellness programs,actuarial services and other administrative service

40、s.We provide services to the federal government in connection with our Federal Health Products&Services business,which administers the Federal Employees Program.(“FEP”).We provide an array of specialty services both to customers of our subsidiary health plans and to unaffiliated health plans,includi

41、ng pharmacy services,stop loss insurance,dental,vision and supplemental health insurance benefits,as well as integrated health services.We are an independent licensee of the Blue Cross and Blue Shield Association(“BCBSA”),an association of independent health benefit plans.We serve our members as the

42、 Blue Cross licensee for California and as the Blue Cross and Blue Shield(“BCBS”)licensee for Colorado,Connecticut,Georgia,Indiana,Kentucky,Maine,Missouri(excluding 30 counties in the Kansas City area),Nevada,New Hampshire,New York(in the New York City metropolitan area and upstate New York),Ohio,Vi

43、rginia(excluding the Northern Virginia suburbs of Washington,D.C.)and Wisconsin.In a majority of these service areas,we do business as Anthem Blue Cross and Anthem Blue Cross and Blue Shield.We also conduct business through arrangements with other BCBS licensees as well as other strategic partners.I

44、n addition,we serve members in numerous states as Wellpoint,Carelon,MMM and/or Simply Healthcare.We are licensed to conduct insurance operations in all 50 states,the District of Columbia and Puerto Rico through our subsidiaries.Our portfolio consists of the following core go-to-market brands:Anthem

45、Blue Cross/Anthem Blue Cross and Blue Shield represents our Anthem-branded and affiliated Blue Cross and/or Blue Shield licensed Medicare,Medicaid,and commercial Health Benefit plans;Wellpoint represents our Wellpoint branded Medicare,Medicaid and commercial Health Benefit plans and other non-BCBSA

46、brands;and Carelon represents our healthcare related services and capabilities,including our CarelonRx and Carelon Services businesses.We report our results of operations in the following four reportable segments:Health Benefits,CarelonRx,Carelon Services and Corporate&Other(our businesses that do n

47、ot individually meet the quantitative thresholds for an operating segment,as well as corporate expenses not allocated to our other reportable segments).For additional information on reportable segments see Note 15,“Segment Information.”2.Basis of Presentation and Significant Accounting PoliciesBasis

48、 of Presentation:The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S.generally accepted accounting principles(“GAAP”)for interim financial reporting.Accordingly,they do not include all the information and footnotes required by GAAP for annual financ

49、ial statements.We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our Annual Report on Form 10-K for the year ended-7-December 31,2024(the“2024 Annual Report on Form 10-K”),unless the information contained in those disclosures materially changed or is

50、required by GAAP.In the opinion of management,all adjustments,including normal recurring adjustments,necessary for a fair statement of the consolidated financial statements as of and for the three months ended March 31,2025 and 2024 have been recorded.The results of operations for the three months e

51、nded March 31,2025 are not necessarily indicative of the results that may be expected for the full year ending December 31,2025,or any other period.The seasonal nature of portions of our healthcare and related benefits business,as well as competitive and other market conditions,may cause full-year r

52、esults to differ from estimates based upon our interim results of operations.These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31,2024 included in our 2024 Annual Report on Form 10-

53、K.Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S.dollar(“USD”).We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period.We translate the revenues and expenses of

54、 those subsidiaries to USD using the average exchange rates in effect during the period.The net effect of these translation adjustments is included in“Foreign currency translation adjustments”in our consolidated statements of comprehensive income.Reclassifications:Certain prior year amounts have bee

55、n reclassified to conform to the current year presentation.Cash and Cash Equivalents:We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits,and we have cash and cash equivalents on deposit to meet certain regulatory requireme

56、nts.These amounts totaled$695 and$409 at March 31,2025 and December 31,2024,respectively,and are included in the“Cash and cash equivalents”line on our consolidated balance sheets.Investments:We classify fixed maturity securities in our investment portfolio as“available-for-sale”and report those secu

57、rities at fair value.Certain fixed maturity securities are available to support current operations and,accordingly,we classify such investments as current assets without regard to their contractual maturity.Investments used to satisfy contractual,regulatory or other requirements are classified as lo

58、ng-term,without regard to contractual maturity.If a fixed maturity security is in an unrealized loss position and we have the intent to sell the fixed maturity security,or it is more likely than not that we will have to sell the fixed maturity security before recovery of its amortized cost basis,we

59、write down the fixed maturity securitys cost basis to fair value and record an impairment loss in our consolidated statements of income.For impaired fixed maturity securities that we do not intend to sell or if it is more likely than not that we will not have to sell such securities,but we expect th

60、at we will not fully recover the amortized cost basis,we recognize the credit component of the impairment as an allowance for credit loss in our consolidated balance sheets and record an impairment loss in our consolidated statements of income.The non-credit component of the impairment is recognized

61、 in“Accumulated other comprehensive loss.”Furthermore,unrealized losses entirely caused by non-credit-related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in“Accumulated other comprehensive loss.”The credit compo

62、nent of an impairment is determined primarily by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security.The net present value is calculated by discounting our best estimate of projected future cash flows at the effective interest r

63、ate implicit in the fixed maturity security at the date of purchase.For mortgage-backed and asset-backed securities,cash flow estimates are based on assumptions regarding the underlying collateral,including prepayment speeds,vintage,type of underlying asset,geographic concentrations,default rates,re

64、coveries and changes in value.For all other securities,cash flow estimates are driven by assumptions regarding probability of default,including changes in credit ratings and estimates regarding timing and amount of recoveries associated with a default.For asset-backed securities included in“Fixed ma

65、turity securities”,we recognize income using an effective yield based on anticipated prepayments and the estimated economic life of the securities.When estimates of prepayments change,the effective yield is recalculated to reflect actual payments to date and anticipated future payments.The net inves

66、tment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities.Such adjustments are reported within net investment income.-8-The changes in fair value of our marketable equity securities are recognized in o

67、ur results of operations within net losses on financial instruments.Certain marketable equity securities are held to satisfy contractual obligations or for other business purposes and are reported under the caption“Other invested assets”in our consolidated balance sheets.Mortgage loans on real estat

68、e are classified as held for investment and are reported at their amortized cost basis net of allowance under the caption“Other invested assets”in our consolidated balance sheets.Amortized cost is the amount at which the loan is originated,adjusted for accrued interest,amortization of premium,discou

69、nt and net deferred fees or costs,collection of cash and write-offs.We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management.The cash surrender value of the corporate-owned life insurance policies is reported under the

70、 caption“Other invested assets”in our consolidated balance sheets.We have investments in limited partnerships(“LPs”)and companies in which our ownership interest may enable us to influence the operating or financial decisions of the investee company,including unconsolidated variable interest entitie

71、s.These investments are accounted for using the equity method of accounting and are reported within“Other invested assets”in our consolidated balance sheets.Our proportionate share of equity in net income(loss)for these LPs and unconsolidated investee companies is reported within“Net investment inco

72、me”in our consolidated statements of income.The carrying value of these investments are written down,or impaired,to fair value when a decline in value is considered to be other-than temporary.In applying the equity method(including assessment for other-than temporary impairment),we use financial inf

73、ormation provided by the LPs and investee companies,generally on a one-to three-month lag.We consolidate investee companies in certain other instances where we are deemed to exercise control,or we are considered the primary beneficiary of a variable interest entity.Investment income is recorded when

74、 earned.All securities sold resulting in investment gains and losses are recorded on the trade date.Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold.We participate in securities lending programs whereby marketable securities in our i

75、nvestment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral.We recognize the collateral as an asset,which is reported under the caption“Other current assets”in our consolidated balance sheets,and we record a corresponding liability for the obl

76、igation to return the collateral to the borrower,which is reported under the caption“Other current liabilities.”The securities on loan are reported in the applicable investment category in our consolidated balance sheets.Unrealized gains or losses on securities lending collateral are included in“Acc

77、umulated other comprehensive loss”as a separate component of shareholders equity.The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions.To the extent the loaned securities value appreciates faster or depreciates slower than the value of th

78、e collateral pledged,we are exposed to the risk of the shortfall.As a primary mitigating mechanism,the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall,if any,is collected accordingly.Secondarily,the collateral level is set at 102%of the value of the l

79、oaned securities,which provides a cushion before any shortfall arises.The investment of the cash collateral is subject to market risk,which is managed by limiting the investments to higher quality and shorter duration instruments.-9-Receivables:Receivables are reported net of amounts for expected cr

80、edit losses.The allowance for doubtful accounts is based on historical collection trends,future forecasts and our judgment regarding the ability to collect specific accounts.Premium receivables include the uncollected amounts from insured groups,individuals and government programs.Premium receivable

81、s are reported net of an allowance for doubtful accounts of$178 and$183 at March 31,2025 and December 31,2024,respectively.Self-funded receivables include administrative fees,claims and other amounts due from fee-based customers for administrative services.Self-funded receivables are reported net of

82、 an allowance for doubtful accounts of$128 and$115 at March 31,2025 and December 31,2024,respectively.Other receivables include pharmacy rebates,provider advances,claims recoveries,reinsurance receivables,proceeds due from brokers on investment trades that have not yet settled,accrued investment inc

83、ome and other miscellaneous amounts due to us.These receivables are reported net of an allowance for doubtful accounts of$1,458 and$1,385 at March 31,2025 and December 31,2024,respectively.Revenue Recognition:Premiums for risk-based contracts are recognized as revenue over the period insurance cover

84、age is provided,and,if applicable,net of amounts recognized for rebates based on medical loss ratio,or regulatory requirements.Premiums may also include performance incentives and penalties,which are recognized based on contractual terms.We estimate amounts receivable and payable under these contrac

85、tual terms,and to the extent that such estimated amounts vary from the final amounts paid,the adjustments are included in earnings in the period of final settlement.Premium payments from contracted government agencies are based on eligibility lists produced by the government agencies.Premium payment

86、s related to the unexpired contractual coverage periods are reflected in the accompanying consolidated balance sheets as Unearned income.Premiums include revenue adjustments for retrospectively rated contracts where revenue is based on the estimated loss experience of the contract.Premium rates for

87、certain lines of business are subject to approval by the Department of Insurance of each respective state.Additionally,delays in annual premium rate changes from contracted government agencies require that we defer the recognition of any increases to the period in which the premium rates become fina

88、l.The value of the impact can be significant in the period in which it is recognized depending on the magnitude of the premium rate increase,the membership to which it applies and the length of the delay between the effective date of the rate increase and the final contract date.Premium rate decreas

89、es are recognized in the period the change in premium rate becomes effective and the change in the rate is known,which may be prior to the period when the contract amendment affecting the rate is finalized.We also record premiums for certain value-based arrangements of our Carelon Services care deli

90、very businesses.Under these value-based arrangements,we carry financial responsibility across medical claims costs through risk contracts with health plans in which we deliver,integrate,direct and control certain health care services for patients.In exchange,we receive a premium that is typically pa

91、id on a per-patient per-month basis and performance-based payments that are recognized when performance metrics are achieved.We consider these value-based arrangements to represent a single performance obligation where revenues are recognized in the period in which health care services are made avai

92、lable.Service fees include revenue from certain group contracts that provide for the group to be at risk for all,or with supplemental insurance arrangements,a portion,of their claims experience.We charge these fee-based groups an administrative fee,which is based on the number of members in a group

93、and the groups claim experience.In addition,service fees include amounts received for the administration of Medicare,certain other government programs,and administrative services arrangements of our Carelon subsidiaries.Generally,each fee-based arrangement includes services which constitute a single

94、 suite of services provided and for which consideration is based upon an agreed-upon rate,regardless of the amount of services provided in a given period.As with premiums,each fee-based arrangement may include terms with retroactive rate or membership adjustments,performance incentives and penalties

95、,each of which is a form of variable consideration within the transaction price.As such,each fee-based arrangement contains a single performance obligation that constitutes a series,and revenue is recognized over time as the services are performed.All benefit payments under these programs are exclud

96、ed from benefit expense.The determination of whether services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.The estimation of variable consideration to be recognized requires significant judgment in

97、 the determination of the level of achievement of performance incentives,service level achievements subject to performance penalties,and the completion level of tasks subject to implementation fees.-10-Product revenue represents services performed by CarelonRx for unaffiliated pharmacy customers and

98、 includes ingredient costs(net of any rebates or discounts),including co-payments made by or on behalf of the customer,and service fees.Unaffiliated pharmacy customers include our fee-based groups that have contracted with CarelonRx for pharmacy services and third-party health plans.Product revenues

99、 and costs of goods sold for our affiliated health plans are eliminated in consolidation,excluding co-payments and subsidies made by or on behalf of affiliated customers.Product revenue for pharmacy services is recognized using the gross method at the negotiated contract price when CarelonRx has con

100、cluded that it is the principal,and it controls the services before prescription drugs are transferred to the customer.CarelonRx determined it is the principal due to its contractual rights to design and develop a listing of prescription drugs offered to the customer(formulary management);its contro

101、l over establishing the pharmacy network available to the customer to have its prescription fulfilled(network management);and its discretion over establishing the pricing for prescription drugs.Overall,control over these activities indicate CarelonRx is primarily responsible for fulfilling the promi

102、se to provide pharmacy services.CarelonRx recognizes revenue when control of the prescription drugs is transferred to customers,in an amount it expects to be entitled to in exchange for the products or services provided.For our non-risk-based contracts,we had no material contract assets,contract lia

103、bilities or deferred contract costs recorded on our consolidated balance sheet at March 31,2025 or December 31,2024.For the three months ended March 31,2025 and 2024,revenue recognized from performance obligations related to prior periods,such as changes in transaction price,were not material.For co

104、ntracts that have an original,expected duration of greater than one year,revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material.Recently Ad

105、opted Accounting Guidance:In November 2023,the Financial Accounting Standards Board(“FASB”)issued Accounting Standards Update No.2023-07,Segment Reporting(Topic 280):Improvements to Reportable Segment Disclosures(“ASU 2023-07”).The amendments in ASU 2023-07 are intended to improve reportable segment

106、 disclosure requirements,primarily through enhanced disclosures about significant segment expenses.The amendments are to be applied retrospectively to all prior periods presented in the financial statements,and upon transition,the significant segment expense categories and amounts disclosed in the p

107、rior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption.We adopted ASU 2023-07 as of January 1,2024.The adoption of ASU 2023-07 did not have an impact on our results of operations or our consolidated cash flows.Recent Accounting G

108、uidance Not Yet Adopted:In November 2024,the FASB issued Accounting Standards Update No.2024-03,Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures(Subtopic 220-40):Disaggregation of Income Statement Expenses(“ASU 2024-03”).This standard requires additional expense bre

109、akdowns in the footnotes for items such as inventory purchases,employee compensation,depreciation,and intangible asset amortization.Public companies must also provide a qualitative description of remaining expense amounts not separately disclosed,as well as the definition and total amount of selling

110、 expenses.ASU 2024-03 is effective for our fiscal year beginning after December 15,2026,and interim periods within our fiscal year beginning after December 15,2027.The amendments are to be applied either prospectively to financial statements issued for reporting periods after the effective date of t

111、he update,or retrospectively to all prior periods presented in the financial statements.We are currently evaluating the effects the adoption of ASU 2024-03 will have on our consolidated financial statements and related disclosures.In December 2023,the FASB issued Accounting Standards Update No.2023-

112、09,Income Taxes(Topic 740)(“ASU 2023-09”).The amendments in ASU 2023-09 are intended to improve income tax disclosures,primarily related to the rate reconciliation and income taxes paid information.ASU 2023-09 is effective for our fiscal year beginning after December 15,2024,however,these disclosure

113、s are not required for interim periods.The amendments are to be applied on a prospective basis,although retrospective adoption is permitted.We do not believe the adoption of ASU 2023-09 will have a material impact on our consolidated financial statements or disclosures.In August 2023,the FASB issued

114、 Accounting Standards Update No.2023-05,Business CombinationsJoint Venture Formations(Subtopic 805-60):Recognition and Initial Measurement(“ASU 2023-05”).ASU 2023-05 clarifies existing guidance to reduce diversity in practice and requires a joint venture to recognize and initially measure its assets

115、 and liabilities using a new basis of accounting,at fair value,upon formation.These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1,2025.We do not believe the adoption of ASU 2023-05 will have a material impact on our consolidated f

116、inancial statements and disclosures.-11-There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2024 Annual Report on Form 10-K that had,or are expected to have,a material impact on our consolidated financial position,results of operations,cas

117、h flows or disclosures.3.Business Acquisitions and DivestituresCompleted Acquisitions On December 31,2024,we completed our acquisition of Centers Plan for Healthy Living LLC and Centers for Specialty Care Group IPA,LLC(“Centers”).Centers is a managed long-term care plan that serves New York state Me

118、dicaid and dual-eligible Medicaid/Medicare members,enabling adults with long-term care needs and disabilities to live safely and independently in their own home.This acquisition aligns with our strategic plan to grow the Health Benefits segment and leverage industry-leading expertise while serving M

119、edicaid and dual-eligible populations.As of March 31,2025,the purchase price was allocated to the tangible and intangible net assets acquired based on managements initial estimates of their fair values,of which$152 has been allocated to finite-lived intangible assets,$426 to indefinite-lived intangi

120、ble assets and$451 to goodwill.The majority of the goodwill is not deductible for income tax purposes.As of March 31,2025,the initial accounting for the acquisition has not been finalized.The proforma effects of this acquisition for prior periods were not material to our consolidated results of oper

121、ations.On December 10,2024,we completed our acquisition of RSV QOZB LTSS,Inc.and certain affiliated entities(“CareBridge”),a value-based healthcare company that manages home and community-based services for Medicaid and dual-eligible members receiving long-term services and support.This acquisition

122、aligns with Carelon Services care at home strategy,and our vision to be an innovative,valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve.As of March 31,2025,the purchase price was allocated to the tangible and intangible net

123、assets acquired based on managements initial estimates of their fair values,of which$995 has been allocated to finite-lived intangible assets and$1,756 to goodwill.The majority of the goodwill is not deductible for income tax purposes.As of March 31,2025,the initial accounting for the acquisition ha

124、s not been finalized.The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations.On March 11,2024,we completed our acquisition of Paragon Healthcare,Inc.(“Paragon”).Paragon,which operates as part of CarelonRx,provides infusion services and i

125、njectable therapies through its omnichannel model of ambulatory infusion centers,home infusion pharmacies,and other specialty pharmacy services.This acquisition aligns with our vision to be an innovative,valuable and inclusive healthcare partner by providing care management programs that improve the

126、 lives of the people we serve.As of March 31,2025,the purchase price was allocated to the tangible and intangible net assets acquired based on their fair values,of which$411 has been allocated to finite-lived intangible assets and$747 to goodwill.The majority of the goodwill is not deductible for in

127、come tax purposes.Since closing and during the measurement period we have adjusted goodwill by$(30).As of March 31,2025,the accounting for the acquisition is finalized.The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations.DivestitureOn

128、 April 1,2024,we completed the sale of our life and disability businesses to StanCorp Financial Group,Inc.(“The Standard”),a provider of financial protection products and services for employers and individuals,which resulted in a gain on sale of business of$201.Upon closing,we and The Standard enter

129、ed into a product distribution partnership.The related net assets held for sale for the life and disability businesses divested and results of operations as of and for the three months ended March 31,2024 were not material.-12-4.Business Optimization InitiativeIn the third quarter of 2023,based on a

130、 strategic review of our operations,assets and investments,management implemented the“2023-2024 Business Efficiency Program”to enhance operating efficiency,refine the focus of our investments and optimize our physical footprint.The 2023-2024 Business Efficiency Program included the write-off of cert

131、ain information technology assets and contract exit costs,a reduction in staff including the relocation of certain job functions,and the impairment of assets associated with the closure or partial closure of data centers and offices.The 2023-2024 Business Efficiency Program was finalized as of Decem

132、ber 31,2024,except as to cash outlays related to personnel-related costs associated with this program,which are expected to be paid through 2025.The ending liability balances related to the employee termination costs under the 2023-2024 Business Efficiency Program at March 31,2025 and December 31,20

133、24 were$190 and$224,respectively.During the three months ended March 31,2025,there were no charges recorded related to employee termination costs under the 2023-2024 Business Efficiency Program,and payments were$34.5.Investments Fixed Maturity SecuritiesA summary of current and long-term fixed matur

134、ity securities,available-for-sale,at March 31,2025 and December 31,2024 is as follows:Cost or Amortized CostGrossUnrealizedGainsGrossUnrealizedLossesAllowance For Credit LossesEstimatedFair Value March 31,2025Fixed maturity securities:United States Government securities$1,782$15$(38)$1,759 Governmen

135、t sponsored securities 111 2 (3)110 Foreign government securities 10 10 States,municipalities and political subdivisions,tax-exempt 3,038 28 (115)2,951 Corporate securities 14,007 243 (275)(4)13,971 Residential mortgage-backed securities 3,502 25 (179)3,348 Commercial mortgage-backed securities 1,96

136、2 18 (37)1,943 Other asset-backed securities 2,471 36 (99)(3)2,405 Total fixed maturity securities$26,883$367$(746)$(7)$26,497 December 31,2024Fixed maturity securities:United States Government securities$1,907$2$(85)$1,824 Government sponsored securities 156 (5)151 Foreign government securities 19

137、(2)17 States,municipalities and political subdivisions,tax-exempt 3,142 33 (123)3,052 Corporate securities 14,095 192 (367)(4)13,916 Residential mortgage-backed securities 3,274 13 (236)3,051 Commercial mortgage-backed securities 1,801 8 (60)(1)1,748 Other asset-backed securities 2,534 36 (92)(1)2,4

138、77 Total fixed maturity securities$26,928$284$(970)$(6)$26,236 Other asset-backed securities primarily consist of collateralized loan obligations and other debt securities.-13-For fixed maturity securities in an unrealized loss position at March 31,2025 and December 31,2024,the following table summa

139、rizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position:Less than 12 Months12 Months or Greater(Securities are whole amounts)Number ofSecuritiesEstimatedFair ValueGrossUnrealizedLossNumber ofSecuritiesEstima

140、tedFair ValueGrossUnrealizedLossMarch 31,2025Fixed maturity securities:United States Government securities 31$614$(18)18$282$(20)Government sponsored securities 3 21 (1)34 37 (2)Foreign government securities 1 6 2 1 States,municipalities and political subdivisions,tax-exempt 471 1,026 (25)618 864 (9

141、0)Corporate securities 1,168 3,231 (64)1,218 2,290 (211)Residential mortgage-backed securities 186 622 (6)1,272 1,223 (173)Commercial mortgage-backed securities 108 457 (5)255 618 (32)Other asset-backed securities 110 265 (7)212 656 (92)Total fixed maturity securities 2,078$6,242$(126)3,629$5,971$(6

142、20)December 31,2024Fixed maturity securities:United States Government securities 40$1,240$(52)25$330$(33)Government sponsored securities 10 89 (2)36 42 (3)Foreign government securities 2 15 (1)2 2 (1)States,municipalities and political subdivisions,tax-exempt527 1,092 (22)661 943 (101)Corporate secu

143、rities1,415 4,717 (92)1,317 2,645 (275)Residential mortgage-backed securities306 1,097 (25)1,312 1,291 (211)Commercial mortgage-backed securities136 670 (15)297 661 (45)Other asset-backed securities123 293 (9)236 735 (83)Total fixed maturity securities 2,559$9,213$(218)3,886$6,649$(752)-14-Unrealize

144、d losses on our securities shown in the table above have not been recognized into income because,as of March 31,2025,we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their anticipated recovery.The declines in fair values are

145、largely due to elevated interest rates driven by the higher rate of inflation and other market conditions.Allowances for credit losses have been recorded in the amount of$7 and$6 at March 31,2025 and December 31,2024,respectively,for declines in fair value due to unfavorable changes in the credit qu

146、ality characteristics that impact our assessment of collectability of principal and interest.The amortized cost and fair value of fixed maturity securities at March 31,2025,by contractual maturity,are shown below.Expected maturities may differ from contractual maturities because the issuers of the s

147、ecurities may have the right to prepay obligations.AmortizedCostEstimatedFair ValueDue in one year or less$196$196 Due after one year through five years 4,685 4,647 Due after five years through ten years 10,620 10,578 Due after ten years 5,918 5,785 Mortgage-backed securities 5,464 5,291 Total fixed

148、 maturity securities$26,883$26,497 Equity Securities A summary of current equity securities at March 31,2025 and December 31,2024 is as follows:March 31,2025December 31,2024Equity securities:Exchange traded funds$621$1,002 Common equity securities 32 118 Private equity securities 62 72 Total$715$1,1

149、92 Other Invested Assets At March 31,2025,“Other invested assets”include non-controlled joint ventures,including our minority interest ownership of approximately 40%of Augusta Topco Holdings,L.P.(“Mosaic Health”)and our 40%minority interest ownership of Project Freedom Holdings,LLC,which is the ulti

150、mate parent of LIBERTY Dental Plan Corporation(“Liberty Dental”).On August 6,2024,we made an investment of$2,580,consisting of cash and the net put option discussed in Note 6,“Derivative Financial Instruments”.Mosaic Health is a joint venture with Clayton,Dubilier&Rice(“CD&R”)that is designed to acc

151、elerate innovation in care delivery across multiple regions in the United States by bringing together certain care delivery and enablement assets of Carelon Management Services Inc.(“CMSI Assets”),a Carelon Health business,and two CD&R portfolio businesses,apree health and Millennium Physician Group

152、.The investment is accounted for as an equity method investment.Our additional contribution of the CMSI Assets to Mosaic Health was completed on January 1,2025,for which we received an additional$300 of equity(approximately 5%ownership)in Mosaic Health.-15-In connection with our equity method invest

153、ment in Mosaic Health,we entered into a financing agreement to provide a term loan of$200 and a revolving credit facility of up to$500 to Mosaic Health.Net amounts receivable under these arrangements were$188 at both March 31,2025 and December 31,2024,which are included under the caption“Other noncu

154、rrent assets”in our consolidated balance sheets as of March 31,2025 and December 31,2024.During the three months ended March 31,2025,we recognized$4 in interest income from the financing arrangement with Mosaic Health.In addition to the term loan and line of credit,we committed to providing$70 of fu

155、nding with no additional equity interest in Mosaic Health to meet any shortfall in operating cash flow and regulatory capital requirements of the CMSI Assets through December 31,2026,and to fund any remaining shortfalls as necessary for which we would receive additional equity interests in Mosaic He

156、alth.In addition,during the quarter ended March 31,2025,in the normal course of business,Mosaic provided care delivery and enablement services to Elevance Health subsidiaries amounting to$175,reported in benefit expense.In January 2023,we made an equity investment consisting of cash and a net put op

157、tion in Liberty Dental,a joint venture with Welsh,Carson,Anderson&Stowe which engages in dental insurance and dental health care administration.The investment is accounted for as an equity method investment.In connection with our equity method investment in Liberty Dental,in December 2024 we entered

158、 into a commitment to provide funding in the form of mandatorily redeemable preferred equity shares in Liberty Dental of up to$250,of which$93 and$87 was disbursed as of March 31,2025 and December 31,2024,respectively.The mandatorily redeemable preferred equity in Liberty Dental is included in the c

159、aption“Other invested assets”in our consolidated balance sheets at March 31,2025 and December 31,2024.Dividend income recognized from the financing arrangement during the three months ended March 31,2025 and the year ended December 31,2024 was not material.During the quarter ended March 31,2025,in t

160、he normal course of business,Liberty Dental provided administrative services to our Medicare Advantage members under a capitated arrangement amounting to$146,reported in benefit expense.Investment Gains(Losses)Net investment gains(losses)for the three months ended March 31,2025 and 2024 are as follo

161、ws:Three Months Ended March 3120252024Net gains(losses):Fixed maturity securities:Gross realized gains from sales$28$22 Gross realized losses from sales(82)(159)Impairment losses recognized in income(1)(2)Net realized losses from sales of fixed maturity securities(55)(139)Equity securities:Unrealize

162、d gains(losses)recognized on equity securities still held at the end of the period(6)2 Net realized(losses)gains recognized on equity securities sold during the period(1)Net gains(losses)on equity securities(7)2 Other investments:Gross gains 5 16 Gross losses(94)(20)Other realized losses recognized

163、in income(311)(25)Net losses on other investments(400)(29)Net losses on investments$(462)$(166)A primary objective in the management of our fixed maturity and equity portfolios is to maximize total return relative to underlying liabilities and respective liquidity needs.In achieving this goal,assets

164、 may be sold to take advantage of market conditions or other investment opportunities as well as tax considerations.Sales will generally produce realized gains and losses.In the ordinary course of business,we may sell securities at a loss for a number of reasons,including,but not limited-16-to:(i)ch

165、anges in the investment environment;(ii)expectations that the fair value could deteriorate further;(iii)desire to reduce exposure to an issuer or an industry;(iv)changes in credit quality;or(v)changes in expected cash flow.Total proceeds from sales,maturities,calls or redemptions of fixed maturity s

166、ecurities were$3,338 and$5,401 during the three months ended March 31,2025 and 2024,respectively.Accrued Investment IncomeAt March 31,2025 and December 31,2024,accrued investment income totaled$268 and$287,respectively.We recognize accrued investment income under the caption“Other receivables”on our

167、 consolidated balance sheets.Securities Lending ProgramsThe fair value of the cash and securities received as collateral for securities loaned at March 31,2025 and December 31,2024 was$2,596 and$2,305,respectively.The collateral received was 102%of the market value of the loaned securities at each o

168、f March 31,2025 and December 31,2024.We recognize the collateral as an asset under the caption“Other current assets”in our consolidated balance sheets,and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption“Other current liabilities.”T

169、he securities on loan are reported in the applicable investment category on our consolidated balance sheets.At March 31,2025 and December 31,2024,the remaining contractual maturities of our securities lending transactions included overnight and continuous transactions of cash for$2,402 and$2,115,res

170、pectively,United States Government securities for$194 and$176,respectively,and residential mortgage-backed securities for$0 and$14,respectively.-17-6.Derivative Financial InstrumentsWe use derivative financial instruments to manage interest rate and foreign exchange risk and credit exposure.We prima

171、rily invest in the following types of derivative financial instruments:interest rate swaps,futures,forward contracts,put and call options,collars,swaptions,embedded derivatives and warrants.We also enter into master netting agreements,which reduce credit risk by permitting net settlement of transact

172、ions.At March 31,2025 and December 31,2024,we had posted collateral of$14 and$142,respectively,related to our derivative financial instruments.We have entered into various interest rate swap contracts to convert a portion of our interest rate exposure on our long-term debt from fixed rates to floati

173、ng rates.The floating rates payable on all of our fair value hedges are benchmarked to the Secured Overnight Financing Rate(“SOFR”).Any amounts recognized for changes in fair value of these derivatives are included in the captions“Other current assets,”“Other noncurrent assets,”“Other current liabil

174、ities”or“Other noncurrent liabilities”in our consolidated balance sheets,as applicable.The unrecognized loss for all expired and terminated cash flow hedges included in accumulated other comprehensive loss,net of tax,was$199 and$201 at March 31,2025 and December 31,2024,respectively.During the three

175、 months ended March 31,2025,we recognized net gains of$1 and net losses of$(3),respectively,on non-hedging derivatives.During the three months ended March 31,2024,we recognized net gains of$11 and net losses of$(6)on non-hedging derivatives,respectively.In connection with our equity investment in Mo

176、saic Health(see Note 5,“Investments”),we entered into a limited partnership and related agreements with the majority owners that provides for certain rights and obligations of each party,including certain put,call,and purchase price true-up options.These options,if exercised,will result in our purch

177、ase of the units held by the majority owners as early as 2028 but no later than 2030 at a price based on certain multiples of revenue and earnings of Mosaic Health businesses,subject to various adjustments and qualifications.We have calculated the fair value of the net put option,which is a Level II

178、I measurement(see Note 7,“Fair Value”),using a Monte Carlo simulation,which relies on assumptions including cash flow projections,risk-free rates,volatility and details specific to the options.Significant changes in assumptions could result in significantly lower or higher fair value measurements.Th

179、e net put options estimated fair value liability of$1,330,which is a non-cash item measured at the date of our initial investment,is included under the caption“Other noncurrent liabilities”in our consolidated balance sheets as of March 31,2025 and December 31,2024.We have elected to not mark the net

180、 put option to market,as it is an option on large blocks of equity securities,and the carrying value of the net put option will remain on the consolidated balance sheets until it is exercised or expires.In connection with our equity investment in Liberty Dental(see Note 5,“Investments”),we entered i

181、nto an agreement with the majority owners that provides for certain rights and obligations of each party,including certain put and call options.These options,if exercised,will result in our purchase of the units held by the majority owners as early as 2026 but no later than 2027 at a price based on

182、certain multiples of earnings of Liberty Dental,subject to various adjustments and qualifications.We have calculated the fair value of the net put option,which is a Level III measurement(see Note 7,“Fair Value”),using a Monte Carlo simulation,which relies on assumptions including cash flow projectio

183、ns,risk-free rates,volatility and details specific to the options.Significant changes in assumptions could result in significantly lower or higher fair value measurements.On March 28,2025,the terms of the put and call options were substantially amended.The previous net put option liability of$85 at

184、December 31,2024 was extinguished and we recognized a new net put option liability at its estimated fair value of$396 which is included under the caption“Other noncurrent liabilities”in our consolidated balance sheets as of March 31,2025.The change in value was recognized through net losses on finan

185、cial instruments in our consolidated statement of income.For additional information relating to the fair value of our derivative assets and liabilities,see Note 7,“Fair Value,”included in this Quarterly Report on Form 10-Q.-18-7.Fair ValueAssets and liabilities recorded at fair value in our consolid

186、ated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value.These assets and liabilities are classified into one of three levels of hierarchy defined by GAAP.For a description of the methods and assumptions that are used to estimat

187、e and determine the fair value hierarchy classification for each class of financial instruments,see Note 7,“Fair Value,”to our audited consolidated financial statements as of and for the year ended December 31,2024 included in Part II,Item 8 of our 2024 Annual Report on Form 10-K.A summary of fair v

188、alue measurements by level for assets and liabilities measured at fair value on a recurring basis at March 31,2025 and December 31,2024 is as follows:-19-Level ILevel IILevel IIITotalMarch 31,2025Assets:Cash equivalents$3,489$3,489 Fixed maturity securities,available-for-sale:United States Governmen

189、t securities 1,759 1,759 Government sponsored securities 110 110 Foreign government securities 10 10 States,municipalities and political subdivisions,tax-exempt 2,951 2,951 Corporate securities 13,856 115 13,971 Residential mortgage-backed securities 3,348 3,348 Commercial mortgage-backed securities

190、 1,943 1,943 Other asset-backed securities 1,602 803 2,405 Total fixed maturity securities,available-for-sale 25,579 918 26,497 Equity securities:Exchange traded funds 621 621 Common equity securities 2 30 32 Private equity securities 62 62 Total equity securities 623 30 62 715 Other invested assets

191、-common equity securities 8 8 Securities lending collateral 2,597 2,597 Derivatives-other assets 32 32 Total assets$4,120$28,238$980$33,338 Percentage of total assets at fair value 12%85%3%100%Liabilities:Derivatives-other liabilities$(47)$(47)Total liabilities$(47)$(47)December 31,2024Assets:Cash e

192、quivalents$3,199$3,199 Fixed maturity securities,available-for-sale:United States Government securities 1,824 1,824 Government sponsored securities 151 151 Foreign government securities 17 17 States,municipalities and political subdivisions,tax-exempt 3,052 3,052 Corporate securities 13,873 43 13,91

193、6 Residential mortgage-backed securities 3,041 10 3,051 Commercial mortgage-backed securities 1,748 1,748 Other asset-backed securities 1,730 747 2,477 Total fixed maturity securities,available-for-sale 25,436 800 26,236 Equity securities:Exchange traded funds 1,002 1,002 Common equity securities 87

194、 31 118 Private equity securities 72 72 Total equity securities 1,089 31 72 1,192 Other invested assets-common equity securities 18 18 Securities lending collateral 2,306 2,306 Derivatives-other assets 5 5 Total assets$4,306$27,778$872$32,956 Percentage of total assets at fair value 13%84%3%100%Liab

195、ilities:Derivatives-other liabilities$(150)$(150)Total liabilities$(150)$(150)There were no individually material transfers into or out of Level III during the three months ended March 31,2025 or 2024.There were no adjustments to quoted market prices obtained from the pricing services during the thr

196、ee months ended March 31,2025 or 2024.-20-Certain assets and liabilities are measured at fair value on a nonrecurring basis;that is,the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances.As disclosed in Note 3,“Busin

197、ess Acquisitions and Divestitures,”we completed our acquisition of Centers and CareBridge in December 2024 and Paragon in March 2024.The net assets acquired in our acquisitions of Centers,CareBridge and Paragon,and resulting goodwill and other intangible assets were recorded at fair value primarily

198、using Level III inputs.The majority of tangible assets acquired and liabilities assumed were recorded at their carrying values as of the acquisition date,as their carrying values approximated their fair values due to their short-term nature.The initial fair values of goodwill and other intangible as

199、sets acquired in our acquisitions of Centers and CareBridge were internally estimated based on the income approach.The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future.We developed internal estimates for the

200、 expected cash flows and discount rate in the present value calculation.The fair values of goodwill and other intangible assets acquired in our acquisition of Paragon were finalized as of March 31,2025 and were calculated based on the income approach.In 2024,we entered into a limited partnership and

201、 related agreements which included certain put and call options on our minority interest ownership of Mosaic Health.Also,in 2023,we entered into a limited liability company agreement which included certain put and call options on our minority interest ownership of Liberty Dental.The net put option l

202、iabilities were recorded at their fair value measured at the date of acquisition using Level III inputs based on a Monte Carlo simulation,which relies on assumptions including cash flow projections,risk-free rates,volatility and details specific to the options.We have elected to not mark the net put

203、 options to market.As discussed in Note 6,“Derivatives”,on March 28,2025,the terms of the Liberty Dental put and call options were substantially amended.The previous net put option liability was extinguished and we recognized a new net put option liability at its estimated fair value of$396.The exti

204、nguished net put option estimated fair value was$543 at December 31,2024.Other than the assets acquired and liabilities assumed in our acquisitions of Centers,CareBridge and Paragon and the net put options on Mosaic Health and Liberty Dental,there were no material assets or liabilities measured at f

205、air value on a nonrecurring basis during the three months ended March 31,2025 or 2024.In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets,FASB guidance also requires the disclosure of fair values for certain other financial instruments for whi

206、ch it is practicable to estimate fair value,whether or not such values are recognized in our consolidated balance sheets.Non-financial instruments such as property and equipment,other current assets,deferred income taxes,intangible assets and certain financial instruments,such as limited partnership

207、s,joint ventures,other non-controlled corporations,corporate-owned life insurance policies,and policy liabilities,are excluded from the fair value disclosures.Therefore,the fair value amounts cannot be aggregated to determine our underlying economic value.The carrying amounts reported in the consoli

208、dated balance sheets for cash,premium receivables,self-funded receivables,other receivables,unearned income,accounts payable and accrued expenses,and certain other current liabilities approximate fair value because of the short-term nature of these items.These assets and liabilities are not listed i

209、n the table below.See Note 7,“Fair Value,”to our audited consolidated financial statements as of and for the year ended December 31,2024 included in Part II,Item 8 of our 2024 Annual Report on Form 10-K for details on the methods and assumptions used to estimate the fair value for each class of fina

210、ncial instruments that are recorded at their carrying value in our consolidated balance sheets.-21-A summary of the estimated fair values by level for each class of financial instruments that is recorded at its carrying value on our consolidated balance sheets at March 31,2025 and December 31,2024 i

211、s as follows:CarryingValueEstimated Fair Value Level ILevel IILevel IIITotalMarch 31,2025Assets:Other invested assets$657$634$634 Liabilities:Debt:Short-term borrowings 250 250 250 Notes 29,753 27,586 27,586 Options 1,726 1,726 1,726 December 31,2024Assets:Other invested assets$642$610$610 Liabiliti

212、es:Debt:Short-term borrowings 365 365 365 Notes 30,867 28,460 28,460 Options 1,415 1,873 1,873 8.Income TaxesDuring the three months ended March 31,2025 and 2024,we recognized income tax expense of$613 and$690,respectively,which represent effective income tax rates of 21.9%and 23.5%,respectively.The

213、 decrease in our effective income tax rate from the three months ended March 31,2024 was primarily due to favorable resolutions of uncertain tax positions and certain investment credits.We recognized income taxes receivable of$63 and$213 as an asset under the caption“Other current assets”and income

214、taxes payable of$267 and$75 as a liability under the caption“Other current liabilities”in our consolidated balance sheets as of March 31,2025 and December 31,2024,respectively.-22-9.Medical Claims PayableA reconciliation of the beginning and ending balances for medical claims payable for the three m

215、onths ended March 31,2025 and 2024 is as follows:20252024Gross medical claims payable,beginning of period$15,580$15,865 Ceded medical claims payable,beginning of period(13)(7)Net medical claims payable,beginning of period 15,567 15,858 Business combinations and purchase adjustments(85)Net incurred m

216、edical claims:Current period 35,313 30,708 Prior periods redundancies(1,025)(1,205)Total net incurred medical claims 34,288 29,503 Net payments attributable to:Current period medical claims 23,392 19,580 Prior periods medical claims 9,863 9,606 Total net payments 33,255 29,186 Net medical claims pay

217、able,end of period 16,515 16,175 Ceded medical claims payable,end of period 14 8 Gross medical claims payable,end of period$16,529$16,183 At March 31,2025,the total of net incurred but not reported liabilities plus expected development on reported claims was$11,835,$3,979 and$701 for the claim years

218、 2025,2024,and 2023 and prior,respectively.The favorable development recognized in the three months ended March 31,2025 resulted from faster than expected development of completion factors from the latter part of 2024 as well as smaller but significant contribution from trend factors in late 2024 de

219、veloping more favorably than originally expected.The favorable development recognized in the three months ended March 31,2024 resulted from faster than expected development of completion factors during the latter part of 2023,as well as trend factors in late 2023 developing more favorably than origi

220、nally expected.-23-The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the three months ended March 31,2025 and 2024 is as follows:20252024Net incurred medical claims with medical claims payable$33,349$29,503 Performance-based ar

221、rangements without medical claims payable 939 Total net incurred medical claims 34,288 29,503 Quality improvement and other claims expense 1,024 1,043 Benefit expense$35,312$30,546 Net incurred medical claims under certain performance-based risk arrangements that include gain or loss sharing compone

222、nts do not require a medical claim payable liability.The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheets,as of March 31,2025 is as follows:TotalNet medical claims paya

223、ble,end of period$16,515 Ceded medical claims payable,end of period 14 Insurance lines other than short duration 283 Gross medical claims payable,end of period$16,812 10.DebtWe generally issue senior unsecured notes for long-term borrowing purposes.At March 31,2025 and December 31,2024,we had$29,728

224、 and$30,842,respectively,outstanding under these notes.We have an unsecured surplus note with an outstanding principal balance of$25 at both March 31,2025 and December 31,2024.We have a senior revolving credit facility(the“5-Year Facility”)with a group of lenders for general corporate purposes.The 5

225、-Year Facility provides credit of up to$4,000 and matures in April 2027.Our ability to borrow under the 5-Year Facility is subject to compliance with certain covenants,including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60%,subject to increase in certain cir

226、cumstances set forth in the credit agreement for the 5-Year Facility.As of March 31,2025,our debt-to-capital ratio,as defined and calculated under the 5-Year Facility,was 41.3%.We do not believe the restrictions contained in our 5-Year Facility covenants materially affect our financial or operating

227、flexibility.As of March 31,2025,we were in compliance with all of our debt covenants under the 5-Year Facility.There were no amounts outstanding under the 5-Year Facility at any time during the three months ended March 31,2025 or during the year ended December 31,2024.We have an authorized commercia

228、l paper program of up to$4,000,the proceeds of which may be used for general corporate purposes.We had no amounts outstanding under this program at both March 31,2025 and December 31,2024.We are a member,through certain subsidiaries,of the Federal Home Loan Bank of Indianapolis,the Federal Home Loan

229、 Bank of Cincinnati,the Federal Home Loan Bank of Atlanta and the Federal Home Loan Bank of New York(collectively,the“FHLBs”).As a member,we have the ability to obtain short-term cash advances,subject to certain minimum collateral requirements.We had$250 and$365 of outstanding short-term borrowings

230、from the FHLBs at March 31,2025 and December 31,2024,respectively.All debt is a direct obligation of Elevance Health,Inc.,except for the unsecured surplus note and the FHLBs borrowings.-24-11.Commitments and ContingenciesLitigation and Regulatory Proceedings We are defendants in,or parties to,a numb

231、er of pending or threatened legal actions or proceedings.To the extent a plaintiff or plaintiffs in the following cases have specified in their complaint or in other court filings the amount of damages being sought,we have noted those alleged damages in the descriptions below.Where available informa

232、tion indicates that it is probable that a loss has been incurred as of the date of the consolidated financial statements and we can reasonably estimate the amount of that loss,we accrue the estimated loss by a charge to income.In many proceedings,however,it is difficult to determine whether any loss

233、 is probable or reasonably possible.In addition,even where loss is possible or probable or an exposure to loss exists in excess of the liability already accrued with respect to a previously identified loss contingency,it is not always possible to reasonably estimate the amount of the possible or pro

234、bable loss or range of losses in excess of the amount,if any,accrued,for various reasons,including but not limited to some or all of the following:(i)there are novel or unsettled legal issues presented,(ii)the proceedings are in early stages,(iii)there is uncertainty as to the likelihood of a class

235、being certified or decertified or the ultimate size and scope of the class,(iv)there is uncertainty as to the outcome of pending appeals or motions,(v)there are significant factual issues to be resolved and/or(vi)in many cases,the plaintiffs have not specified damages in their complaint or in court

236、filings.With respect to the cases described below,we contest liability and/or the amount of damages in each matter,and we believe we have meritorious defenses.We do not believe the outcome of any known pending or threatened legal actions or proceedings will,in the aggregate,have a material impact on

237、 our financial position.However,unanticipated outcomes do sometimes occur,which could result in liabilities in excess of our accruals and could have a material adverse effect on our consolidated financial position or results of operations.In addition to the lawsuits described below,we are also invol

238、ved in other pending and threatened litigation of the character incidental to our business and are from time to time involved as a party in various governmental investigations,audits,reviews and administrative proceedings(“government actions”).These government actions include routine and special inq

239、uiries by and disclosures to state insurance departments,state attorneys general,U.S.Regulatory Agencies,the U.S.Attorney General and subcommittees of the U.S.Congress.Such government actions could result in the imposition of civil or criminal fines,penalties,other sanctions and additional rules,reg

240、ulations or other restrictions on our business operations.Any liability that may result from any one of these government actions individually,or in the aggregate,could have a material adverse effect on our consolidated financial position or results of operations.Blue Cross Blue Shield Antitrust Liti

241、gationWe are a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA and Blue Cross and/or Blue Shield licensees(the“Blue plans”)across the country.Cases filed in twenty-eight states were consolidated into a single,multi-district proceeding captioned In re Blue Cross Blu

242、e Shield Antitrust Litigation that is pending in the U.S.District Court for the Northern District of Alabama(the“Court”).Generally,the suits allege that the BCBSA and the Blue plans have conspired to horizontally allocate geographic markets through license agreements,best efforts rules that limit th

243、e percentage of non-Blue revenue of each plan,restrictions on acquisitions,rules governing the BlueCard and National Accounts programs and other arrangements in violation of the Sherman Antitrust Act and related state laws.The cases were brought by two putative nationwide classes of plaintiffs,healt

244、h plan subscribers and providers.The BCBSA and Blue plans approved a settlement agreement and release with the subscriber plaintiffs(the“Subscriber Settlement Agreement”),which agreement required the Courts approval to become effective.The Subscriber Settlement Agreement requires the defendants to m

245、ake a monetary settlement payment and contains certain terms imposing non-monetary obligations including(i)eliminating the“national best efforts”rule in the BCBSA license agreements(which rule limits the percentage of non-Blue revenue permitted for each Blue plan)and(ii)allowing for some large natio

246、nal employers with self-funded benefit plans to request a bid for insurance coverage from a second Blue plan in addition to the local Blue plan.In November 2020,the Court issued an order preliminarily approving the Subscriber Settlement Agreement,following which members of the subscriber class were

247、provided notice of the Subscriber Settlement Agreement and an opportunity to opt out of the class.A small number of subscribers submitted valid opt-outs by the opt-out deadline.-25-In August 2022,the Court issued a final order approving the Subscriber Settlement Agreement(the“Final Approval Order”).

248、The Court amended its Final Approval Order in September 2022,further clarifying the injunctive relief that may be available to subscribers who submitted valid opt-outs.The ultimate amount paid by us under the Subscriber Settlement Agreement was$604.The Subscriber Settlement Agreement and the defenda

249、nts payment and non-monetary obligations under the Subscriber Settlement Agreement became effective in June 2024,with the request for second Blue plan bid provisions effective in September 2024.The funds held in escrow will be distributed in accordance with the Subscriber Settlement Agreement.A numb

250、er of follow-on cases involving entities that opted out of the Subscriber Settlement Agreement have been filed.Those actions are:Alaska Air Group,Inc.,et al.v.Anthem,Inc.,et al.,No.2:21-cv-01209-AMM(N.D.Ala.)(“Alaska Air”);JetBlue Airways Corp.,et al.v.Anthem,Inc.,et al.,No.2:22-cv-00558-GMB(N.D.Ala

251、.)(“Jet Blue”);Metropolitan Transportation Authority v.Blue Cross and Blue Shield of Alabama et al.,No.2:22-cv-00265-RDP(N.D.Ala.)(dismissed without prejudice in June 2023);Bed Bath&Beyond Inc.v.Anthem,Inc.,No.2:22-cv-01256-SGC(N.D.Ala.);Hoover,et al.v.Blue Cross Blue Shield Association,et al.,No 1:

252、21-cv-23448(S.D.Fla.).;and VHS Liquidating Trust v.Blue Cross of California,et al.,No.RG21106600(Cal.Super.)(“VHS”).In February 2023,the Court denied the defendants motion to dismiss based on a statute of limitations defense in Alaska Air and Jet Blue.In September 2023,the California court presiding

253、 over the VHS case upheld its prior order granting in part defendants motion to strike based on the statute of limitations.On February 14,2025,the VHS plaintiffs amended their complaint to add an additional plaintiff,Childrens Hospital of Los Angeles.We intend to continue to vigorously defend these

254、follow-on cases,which we believe are without merit;however,their ultimate outcome cannot be presently determined.In October 2020,after the Court lifted the stay as to the provider litigation,provider plaintiffs filed a renewed motion for class certification,which defendants opposed.In March 2021,the

255、 Court issued an order terminating the pending motion for class certification until the Court determined the standard of review applicable to the providers claims.In response to that order,the parties filed renewed standard of review motions,and in June 2021,the parties filed summary judgment motion

256、s not critically dependent on class certification.In February 2022,the Court issued orders(i)granting certain defendants motion for partial summary judgment against the provider plaintiffs who had previously released claims against such defendants and(ii)granting the provider plaintiffs motion for p

257、artial summary judgment,determining that Ohio v.American Express Co.does not affect the standard of review in this case.In August 2022,the Court issued orders(i)granting in part the defendants motion regarding the antitrust standard of review,holding that for the period of time after the elimination

258、 of the“national best efforts”rule,the rule of reason applies to the provider plaintiffs market allocation conspiracy claims,and(ii)denying the provider plaintiffs motion for partial summary judgment on the standard of review,reaffirming its prior holding that the provider groups boycott claims are

259、subject to the rule of reason.In December 2023,the Court denied defendants motion for summary judgment on providers damage claims as time-barred and speculative and provider plaintiffs motion for partial summary judgment on the defendants single entity defense due to the existence of genuine issues

260、of material fact.In January 2024,the Court issued orders(i)denying defendants motion for summary judgment on(a)all claims by certain hospital providers and(b)any claims based on the Blue systems rules other than exclusive serviced areas or BlueCard and(ii)denying provider plaintiffs motion for parti

261、al summary judgment on defendants common law trademark claims.In the third quarter of 2024,the BCBSA,along with the individually named Blue plans approved a settlement agreement and release(the“Provider Settlement Agreement”)with the provider plaintiffs,and in October 2024 the provider plaintiffs fi

262、led a motion for preliminary approval with the Court.The Court granted preliminary approval of the provider settlement on December 4,2024.A Final Fairness hearing is scheduled for July 29,2025.If finally approved by the Court,the Provider Settlement Agreement will require the defendants to make a mo

263、netary settlement payment,our portion of which is estimated to be$666,and will contain certain non-monetary terms including(i)expansion of certain opportunities to contract with providers in contiguous service areas,(ii)certain prompt pay commitments,and(iii)various technological enhancements to the

264、 BlueCard program.We recognized our estimated payment obligation under the Provider Settlement Agreement of$666 in September 2024.We recognized this estimated payment obligation as operating expense in the Corporate&Other segment(see Note 15,“Segment Information”).A number of follow-on cases involvi

265、ng entities that opted out of the putative Provider Settlement Agreement have been filed.We intend to continue to vigorously defend these provider follow-on cases,which we believe are without merit;however,their ultimate outcome cannot be presently determined.-26-Medicare Risk Adjustment LitigationI

266、n March 2020,the U.S.Department of Justice(“DOJ”)filed a civil lawsuit against Elevance Health,Inc.in the U.S.District Court for the Southern District of New York(the“District Court”)in a case captioned United States v.Anthem,Inc.The DOJs suit alleges,among other things,that we falsely certified the

267、 accuracy of the diagnosis data we submitted to the Centers for Medicare and Medicaid Services(“CMS”)for risk-adjustment purposes under Medicare Part C and knowingly failed to delete inaccurate diagnosis codes.The DOJ further alleges that,as a result of these purported acts,we caused CMS to calculat

268、e the risk-adjustment payments based on inaccurate diagnosis information,which enabled us to obtain unspecified amounts of payments in Medicare funds in violation of the False Claims Act.The DOJ filed an amended complaint in July 2020,alleging the same causes of action but revising some of its factu

269、al allegations.In September 2020,we filed a motion to transfer the lawsuit to the Southern District of Ohio,a motion to dismiss part of the lawsuit,and a motion to strike certain allegations in the amended complaint,all of which the District Court denied in October 2022.In November 2022,we filed an

270、answer.In March 2023,discovery commenced,and an initial case management conference was held in April 2023.Fact discovery is ongoing.In December 2024,the District Court issued a scheduling order setting the deadlines for the completion of fact discovery in August 2025 and April 2026 for the completio

271、n of expert discovery.We intend to continue to vigorously defend this suit,which we believe is without merit;however,the ultimate outcome cannot be presently determined.Other ContingenciesFrom time to time,we and certain of our subsidiaries are parties to various legal proceedings,many of which invo

272、lve claims for coverage encountered in the ordinary course of business.We,like Health Maintenance Organizations(“HMOs”)and health insurers generally,exclude certain healthcare and other services from coverage under our HMO,Preferred Provider Organizations and other plans.We are,in the ordinary cours

273、e of business,subject to the claims of our enrollees arising out of decisions to restrict or deny reimbursement for uncovered services.The loss of even one such claim,if it results in a significant punitive damage award,could have a material adverse effect on us.In addition,the risk of potential lia

274、bility under punitive damage theories may increase significantly the difficulty of obtaining reasonable reimbursement of coverage claims.Contractual Obligations and CommitmentsIn September 2024,we extended our agreement with a vendor for information technology infrastructure and related management a

275、nd support services through June 2029.Our remaining commitment under this agreement is approximately$1,961.We have the ability to terminate the agreement upon the occurrence of certain events,subject to early termination fees.CarelonRx markets and offers pharmacy services to our affiliated health pl

276、an customers throughout the country,as well as to customers outside of the health plans we own.The comprehensive pharmacy services portfolio includes all core pharmacy services,such as home delivery and specialty pharmacies,claims adjudication,formulary management,pharmacy networks,rebate administra

277、tion,a prescription drug database and member services.CarelonRx delegates certain core pharmacy services to CaremarkPCS Health,L.L.C.(“CVS”),which is a subsidiary of CVS Health Corporation,pursuant to an agreement(the“CVS Agreement”),with the current contractual term extending through December 31,20

278、27.We can elect to have CVS continue to provide services to us for a three-year extension period on the same terms and conditions as in the current CVS Agreement in the event of a termination or non-renewal by either party.We have financial guarantees related to standby letters of credit and surety

279、bonds related to certain contractual commitments,which totaled$894 as of March 31,2025.We do not believe such obligations will materially affect our financial position,results of operations,or cash flows.We have unfunded loan commitments to certain equity investees of$501 at March 31,2025.We do not

280、believe such obligations will materially affect our financial position,results of operations,or cash flows.Vulnerability ConcentrationsFinancial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents,investment securities,premium receivables an

281、d instruments held through hedging activities.All investment securities are managed by professional investment managers within policies authorized by our Board of Directors.Such policies limit the-27-amounts that may be invested in any one issuer and prescribe certain investee company criteria.Conce

282、ntrations of credit risk with respect to premium receivables are limited due to the large number of employer groups that constitute our customer base in the states in which we conduct business.As of March 31,2025,there were no significant concentrations of financial instruments in a single investee,

283、industry or geographic location.12.Capital Stock Stock Incentive PlansA summary of stock option activity for the three months ended March 31,2025 is as follows:Number ofSharesWeighted-AverageOption Priceper ShareWeighted-AverageRemainingContractualLife(Years)AggregateIntrinsicValueOutstanding at Jan

284、uary 1,2025 2.9$361.36 Granted 0.6 395.49 Exercised(0.1)209.75 Outstanding at March 31,2025 3.4 371.80 6.28$264 Exercisable at March 31,2025 2.2 339.92 4.92$239 A summary of the status of nonvested restricted stock activity,including restricted stock units and performance units,for the three months

285、ended March 31,2025 is as follows:RestrictedStock Sharesand UnitsWeighted-AverageGrant DateFair Valueper ShareNonvested at January 1,2025 1.0$478.70 Granted 0.6 395.49 Vested(0.4)465.96 Nonvested at March 31,2025 1.2 442.07 During the three months ended March 31,2025,we granted approximately 0.2 res

286、tricted stock units that are contingent upon us achieving earnings targets over the three-year period from 2025 to 2027.These grants have been included in the activity shown above but will be subject to adjustment at the end of 2027 based on results during the three-year period.Fair ValueWe use a bi

287、nomial lattice valuation model to estimate the fair value of all stock options granted.For a more detailed discussion of our stock incentive plan fair value methodology,see Note 15,“Capital Stock,”to our audited consolidated financial statements as of and for the year ended December 31,2024 included

288、 in Part II,Item 8 of our 2024 Annual Report on Form 10-K.The following weighted-average assumptions were used to estimate the fair values of options granted during the three months ended March 31,2025 and 2024:Three Months Ended March 3120252024Risk-free interest rate 4.29%4.28%Volatility factor 30

289、.00%28.00%Quarterly dividend yield 0.432%0.327%Weighted-average expected life(years)4.454.40-28-The following weighted-average fair values per option or share were determined for the three months ended March 31,2025 and 2024:Three Months Ended March 3120252024Options granted during the period$107.31

290、$134.53 Restricted stock awards granted during the period 395.49 499.00 Use of Capital Dividends and Stock Repurchase ProgramWe regularly review the appropriate use of capital,including acquisitions,common stock and debt security repurchases and dividends to shareholders.The declaration and payment

291、of any dividends or repurchases of our common stock or debt is at the discretion of our Board of Directors and depends upon our financial condition,results of operations,future liquidity needs,regulatory and capital requirements and other factors deemed relevant by our Board of Directors.A summary o

292、f our cash dividend activity for the three months ended March 31,2025 and 2024 is as follows:Declaration DateRecord DatePayment DateCashDividendper ShareTotalThree Months Ended March 31,2025January 22,2025March 10,2025March 25,2025$1.71$386 Three Months Ended March 31,2024January 23,2024March 8,2024

293、March 22,2024$1.63$379 On April 16,2025,our Audit Committee declared a second quarter 2025 dividend to shareholders of$1.71 per share,payable on June 25,2025 to shareholders of record at the close of business on June 10,2025.Under our Board of Directors authorization,we maintain a common stock repur

294、chase program.On October 15,2024,our Audit Committee,pursuant to authorization granted by the Board of Directors,authorized an$8,000 increase to the common stock repurchase program.No duration has been placed on the common stock repurchase program,and we reserve the right to discontinue the program

295、at any time.Repurchases may be made from time to time at prevailing market prices,subject to certain restrictions on volume,pricing and timing.The repurchases are effected from time to time in the open market,through negotiated transactions,including accelerated share repurchase agreements,and throu

296、gh plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934,as amended.Our stock repurchase program is discretionary,as we are under no obligation to repurchase shares.We repurchase shares under the program when we believe it is a prudent use of capital.The excess cost of

297、the repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings.A summary of common stock repurchases for the three months ended March 31,2025 and 2024 is as follows:Three Months Ended March 31 20252024Shares repurchased 2.2 1.1 Average price

298、per share$395.78$492.76 Aggregate cost$880$566 Authorization remaining at the end of the period$8,420$3,633 We expect to utilize the remaining authorized amount over a multi-year period,subject to market and industry conditions.For additional information regarding the use of capital for debt securit

299、y repurchases,see Note 10,“Debt,”included in this Quarterly Report on Form 10-Q and Note 13,“Debt,”to our audited consolidated financial statements as of and for the year ended December 31,2024 included in Part II,Item 8 of our 2024 Annual Report on Form 10-K.-29-13.Accumulated Other Comprehensive(L

300、oss)Income A reconciliation of the components of accumulated other comprehensive(loss)income at March 31,2025 and 2024 is as follows:20252024Net unrealized investment(losses)gains:Beginning of period balance$(523)$(632)Other comprehensive income(loss)before reclassifications,net of tax(expense)benef

301、it of($60)and$50 respectively 193 (162)Amounts reclassified from accumulated other comprehensive income,net of tax expense of($13)and($33)respectively 42 106 Other comprehensive income(loss)235 (56)Other comprehensive loss attributable to noncontrolling interests,net of tax benefit of$0 and$0 respec

302、tively(1)End of period balance(289)(688)Non-credit components of impairments on investments:Beginning of period balance(2)(3)Other comprehensive income,net of tax expense of$0 and$0 respectively 1 End of period balance(1)(3)Net cash flow hedges:Beginning of period balance(207)(211)Other comprehensiv

303、e income,net of tax expense of($3)and($1)respectively 5 2 End of period balance(202)(209)Pension and other postretirement benefits:Beginning of period balance(399)(459)Other comprehensive(loss)income,net of tax expense of($8)and($1)respectively(5)4 End of period balance(404)(455)Future policy benefi

304、ts:Beginning of period balance 8 10 Other comprehensive loss,net of tax benefit of$0 and$0 respectively (2)End of period balance 8 8 Foreign currency translation adjustments:Beginning of period balance(24)(18)Other comprehensive income,net of tax expense of$0 and$0 respectively 1 End of period balan

305、ce(23)(18)Total:Total beginning of period accumulated other comprehensive loss(1,147)(1,313)Total other comprehensive income(loss),net of tax(expense)benefit of($84)and$15 respectively 237 (52)Total other comprehensive loss attributable to noncontrolling interests,net of tax benefit of$0 and$0 respe

306、ctively(1)Total end of period accumulated other comprehensive loss$(911)$(1,365)-30-14.Shareholders Earnings per ShareThe denominator for basic and diluted shareholders earnings per share for the three months ended March 31,2025 and 2024 is as follows:20252024Denominator for basic shareholders earni

307、ngs per share weighted-average shares 226.4 232.7 Effect of dilutive securities employee stock options,non-vested restricted stock awards and convertible debentures 0.8 1.5 Denominator for diluted shareholders earnings per share 227.2 234.2 During the three months ended March 31,2025 and 2024,weight

308、ed-average shares related to certain stock options of 1.5 and 0.6,respectively,were excluded from the denominator for diluted shareholders earnings per share because the stock options were anti-dilutive.We have issued approximately 0.6 cumulative restricted stock units under our stock incentive plan

309、s,of which vesting is contingent upon us meeting specified annual earnings targets.Contingent restricted stock units are excluded from the denominator for diluted shareholders earnings per share and are included only if and when the contingency is met.These contingent restricted stock units are bein

310、g measured over a three-year period and generally vest in March of the year following each measurement period.15.Segment InformationWe report our results of operations in the following four reportable segments:Health Benefits,CarelonRx,Carelon Services and Corporate&Other.An immaterial amount of our

311、 total consolidated revenues is derived from activities outside of the U.S.and Puerto Rico.Our Health Benefits segment offers a comprehensive suite of health plans and services to our Individual,Employer Group risk-based,Employer Group fee-based,BlueCard,Medicare,Medicaid and FEP members.The Health

312、Benefits segment offers health products on a full-risk basis;provides a broad array of administrative managed care services to our fee-based customers;and provides a variety of specialty and other insurance products and services such as stop loss,dental,vision and supplemental health insurance benef

313、its.Our CarelonRx segment includes our pharmacy services business.CarelonRx markets and offers pharmacy services to our affiliated health plan customers,as well as to external customers outside of the health plans we own.CarelonRx offers a comprehensive pharmacy services portfolio,which includes all

314、 core pharmacy services,such as home delivery and specialty pharmacies,claims adjudication,formulary management,pharmacy networks,rebate administration,a prescription drug database and member services,as well as infusion services and injectable therapies.Our Carelon Services segment integrates physi

315、cal,behavioral,pharmacy,and social services with the aim of delivering whole health affordably by offering a broad array of healthcare related services and capabilities to internal and external customers through our Carelon Health and Carelon Insights businesses.Carelon promotes affordability by man

316、aging complex areas of the healthcare system,leveraging data and insights to ensure members receive safe,appropriate,high-quality care and providers are reimbursed accurately and timely.Our approach to cost management relies on capabilities including provider enablement,value-based networks,member e

317、ngagement,and utilization management.Our care delivery services primarily target serving chronic and complex populations by providing personalized care in the home and virtually.As a part of Carelon Health,we completed our acquisition of CareBridge at the end of 2024,which provides virtual care to c

318、omplex Medicaid and Medicare patients and supports plans in managing home and community-based services.Our Corporate&Other segment includes our businesses that do not individually meet the quantitative threshold for an operating segment,as well as corporate expenses not allocated to our other report

319、able segments.We define operating revenues to include premiums,product revenue and service fees.Operating revenues are derived from premiums and fees received,primarily from the sale and administration of health benefits and pharmacy products and-31-services.Operating gain is calculated as total ope

320、rating revenue less benefit expense,cost of products sold and operating expense.Affiliated revenues represent revenues or costs for services provided to our subsidiaries by CarelonRx and Carelon Services,in addition to certain administrative and other services provided by our international businesse

321、s,which are recorded at cost or managements estimate of fair market value.Certain administrative costs related to affiliate services are charged to the operating segment receiving the benefits and the amounts may change over time.These affiliated revenues are eliminated in our consolidated financial

322、 statements.For segment reporting,we present all capitation risk arrangements on a gross basis;therefore,eliminations also include adjustments for capitated risk arrangements that are recognized on a net basis under GAAP.The accounting policies of the segments are consistent with those described in

323、the summary of significant accounting policies in Note 2,“Basis of Presentation and Significant Accounting Policies,”except that all capitation risk arrangements are reported on a gross basis with an adjustment included in eliminations for capitated risk arrangements that are presented on a net basi

324、s under GAAP.Our chief operating decision maker(the“CODM”)is our Chief Executive Officer.The CODM assesses the performance of our reportable segments based on operating gain or loss as defined above.The CODM evaluates net investment income,net gains(losses)on financial instruments,interest expense,d

325、epreciation and amortization expense,income taxes and assets,liabilities and equity on a consolidated basis,as these items are managed in a corporate shared service environment and are not the responsibility of segment operating management.The CODM uses operating gain or loss,developed during the an

326、nual budget process,and updated during the periodic forecasting process,as a basis to assess performance and allocate operating and capital resources to each segment.-32-Financial data by reportable segment for the three months ended March 31,2025 and 2024 is as follows:CarelonHealth BenefitsCarelon

327、RxCarelon ServicesTotalCorporate&OtherEliminationsTotalThree Months Ended March 31,2025Premiums$39,588$1,500$1,500$(201)$40,887 Product revenue 5,809 5,809$5,809 Service fees 1,843 3 223 226 2,069 Operating revenue-unaffiliated 41,431 5,812 1,723 7,535 (201)48,765 Operating revenue-affiliated 4,304

328、4,813 9,117 165 (9,282)Operating revenue-total$41,431$10,116$6,536$16,652$165$(9,483)$48,765 Benefit expense$34,393$5,319$5,319$10$(4,410)$35,312 Cost of products sold 9,284 9,284 (4,301)$4,983 Operating expense 4,821 230 726 956 295 (772)5,300 Operating gain(loss)$2,217$602$491$1,093$(140)$3,170 Th

329、ree Months Ended March 31,2024Premiums$35,382$408$408$(94)$35,696 Product revenue 4,499 4,499$4,499 Service fees 1,876 1 197 198 4 2,078 Operating revenue-unaffiliated 37,258 4,500 605 5,105 4 (94)42,273 Operating revenue-affiliated 3,567 3,404 6,971 123 (7,094)Operating revenue-total$37,258$8,067$4

330、,009$12,076$127$(7,188)$42,273 Benefit expense$30,500$3,010$3,010$10$(2,974)$30,546 Cost of products sold 7,373 7,373 (3,548)$3,825 Operating expense 4,471 171 709 880 201 (666)4,886 Operating gain(loss)$2,287$523$290$813$(84)$3,016 A reconciliation of reportable segments operating revenue to the am

331、ounts of total revenues included in our consolidated statements of income for the three months ended March 31,2025 and 2024 is as follows:Three Months Ended March 31 20252024Reportable segments operating revenue 48,765 42,273 Net investment income 590 465 Net losses on financial instruments(464)(161

332、)Total revenues$48,891$42,577-33-A reconciliation of reportable segments operating gain to income before income tax expense included in our consolidated statements of income for the three months ended March 31,2025 and 2024 is as follows:Three Months Ended March 31 20252024Income before income tax e

333、xpense 2,797 2,939 Net investment income(590)(465)Net losses on financial instruments 464 161 Interest expense 344 265 Amortization of other intangible assets 155 116 Reportable segments operating gain 3,170 3,016-34-ITEM 2.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS(In Millions,Except Per Share Data or as Otherwise Stated Herein)This Managements Discussion