The company said its Health Care Benefits segment medical benefit ratio (MBR) rose to 89.6% for the 3 months ended June 30, 2024, from 86.2% a year earlier. The company cited higher utilization, the unfavorable impact of lower Medicare Advantage star ratings and higher acuity in Medicaid as factors.

1. 01

   The company said its Health Care Benefits segment medical benefit ratio (MBR) rose to 89.6% for the 3 months ended June 30, 2024, from 86.2% a year earlier. The company cited higher utilization, the unfavorable impact of lower Medicare Advantage star ratings and higher acuity in Medicaid as factors.

2. 02

   The company said Health Care Benefits adjusted operating income fell $603 million (39.1%) over the 3 months and $1.7 billion (50.4%) over the 6 months. The company cited higher utilization and the unfavorable impact of Medicare Advantage star ratings as the main factors.

3. 03

   The company said consolidated operating income decreased $189 million (5.8%) over the 3 months and $1.4 billion (20.4%) over the 6 months. For the 6-month comparison, the absence of a $496 million restructuring charge and a $349 million loss on assets held for sale related to Omnicare recorded in the prior year partially offset the decline.

4. 04

   The company said net cash provided by operating activities for the 6 months ended June 30, 2024 decreased $5.4 billion from the prior year. The company cited the early receipt of $5.3 billion in CMS payments for July in the prior year and the impact of Medicare utilization as factors. It also said it issued $5.0 billion of senior notes in the same period.

Key figures

Quarter ended June 30, 2024

Revenue

$91.2B

Operating income

$3.0B

Net income

$1.8B

EPS

$1.41

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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