Elevance Health Inc (NYSE:ELV) has reported Q3 FY23 adjusted EPS of $8.99, up 20.5% Y/Y, beating the consensus of $8.45.

The benefit expense ratio was 86.8%, an improvement of 40 basis points, driven by premium rate adjustments in recognition of the medical cost trend.

Also Read: Updated Covid Vaccine US Rollout Hit by Insurance Coverage Delays - What It Means?

Operating cash flow was $2.6 billion, or 2.0x net income. Medical membership totaled 47.33 million, a slight increase of 0.1% year-over-year.

During the third quarter of 2023, medical membership decreased by 664k, driven primarily by growth in BlueCard, Affordable Care Act health plans, and Medicare Advantage membership, partially offset by attrition in Medicaid due to the resumption of eligibility redeterminations and a new entrant into one of the state Medicaid programs in the third quarter, as well as declines in Employer Group risk-based business.

In Q3, the company completed a strategic review, resulting in a net charge of $697 million, comprised of the write-off of certain information technology assets, contract exit costs, and a reduction in staff.

Price Action: ELV shares are down 2.75% at $478.50 during the premarket session on the last check Wednesday.