在下调预期之前，该公司的福利费用比率(保费中用于医疗保健成本的部分)出现飙升，这主要是由于医疗补助费率与其会员的更高的病情严重程度之间的时间不匹配。Elevance Health (ELV.US) faces pressure in its Medical Care business, and Morgan Stanley downgraded the stock rating from 'Shareholding' to 'Hold' on Tuesday.
According to Zhito Finance APP, the resumption of state-level qualification reviews in the USA has changed the severity of conditions in Elevance Health (ELV.US) member base, leading to pressure on the company's Medical Care business. Morgan Stanley downgraded the stock rating from 'Shareholding' to 'Hold' on Tuesday.
The managed Medical Care company headquartered in Indiana lowered its full-year profit forecast to below market expectations when it announced third-quarter results in October, citing that one reason is the mismatch between Medical Care reimbursement rates and the medical needs of its members, with competitors like Centene (CNC.US) sharing the same concerns.
Before lowering expectations, the company's benefit expense ratio (the portion of premium allocated to Medical Care costs) surged due to a timing mismatch between Medical Care rates and its members' higher severity of conditions.
Elevance's stock price has fallen about 20% in 2024, mainly due to disappointing third-quarter performance and industry reviews; however, Morgan Stanley Analyst Erin Wright still chooses to remain cautious due to the uncertainty of the company's recovery path and adverse cost trends.
The analyst wrote: 'While expectations are not high, the uncertainty of normalizing MDCD's financials and the increased concerns regarding MA financial cost trends observed in the third quarter make us hesitant.'
