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Reuters
33 minutes ago
- Reuters
Elevance cuts forecast as rising costs hit health insurers
July 17 (Reuters) - Elevance (ELV.N), opens new tab cut its annual profit forecast and missed Wall Street estimates for quarterly earnings on Thursday, becoming the latest health insurer to warn about persistently high medical costs, and sending its shares 8% lower in early trading. In the last three months, peers UnitedHealth Group(UNH.N), opens new tab, Centene(CNC.N), opens new tab and Molina Healthcare(MOH.N), opens new tab have all issued warnings of elevated costs across government-backed insurance plans ahead of the typical earnings season. Indianapolis, Indiana-based Elevance - the first major health insurer to report second-quarter earnings - flagged higher-than-anticipated costs in its individual plans that conform to the Affordable Care Act, known as Obamacare, and its Medicaid plans for low-income people. Such mismatches reflect a higher use of healthcare services and rising costs of medical procedures, heightening the pressure on insurers already hurt by new regulatory and funding pressures in government plans in the last year. UnitedHealth in May had said it witnessed the trend from members enrolled in its federal-government-backed Medicare Advantage plans for those aged 65 and older. Centene and Molina had flagged higher costs for their state and federally-funded Medicaid plans and in Obamacare. Elevance on Wednesday said it sees annual adjusted profit of about $30 per share, compared with $34.15 to $34.85 per share it previously expected. The company said it expected additional changes to membership enrollment from new regulation under U.S. President Donald Trump's administration, and it expects states' reimbursement rates to price for those changes faster than they did following the COVID-19 pandemic. Wall Street analysts said the forecast cut was largely in the range that investors were expecting going into the quarter. Leerink Partners analyst Whit Mayo said the updated forecast for profit and medical loss ratio provides "a better reset" for Elevance but remains cautious due to the overall challenging environment for the sector. Elevance forecast full-year medical loss ratio, a closely watched metric which tracks medical costs, to be about 90%, reflecting the ongoing industry-wide trend of higher costs on Medicaid and Obamacare plans. For the quarter, Elevance reported a medical loss ratio, the percentage of premiums spent on medical care, of 88.9% compared to analysts' estimates of 88.70%. Elevance banks more on commercial and Medicaid health plans, which cover medical expenses for people with low income with about 19.1% of its members coming from Medicaid as of June 30.


Reuters
an hour ago
- Reuters
Abbott beats estimates on medical devices demand as forecast hits shares
July 17 (Reuters) - Abbott (ABT.N), opens new tab beat Wall Street estimates for second-quarter profit on Thursday, driven by strong demand for its medical devices, including continuous glucose monitors. However, its shares fell 5% premarket after the company's third-quarter earnings forecast fell short of expectations. Abbott projected a profit of between $1.28 and $1.32 per share for the current quarter, below expectation of $1.34. With Abbott shares one of the best year-to-date performers in large and mega-cap medtech, its print needed to be nearly spotless to keep shares moving higher, BTIG analyst Marie Thibault said. In April, Abbott had said it expects President Donald Trump's tariffs to begin impacting results in the third quarter, with an anticipated annual cost of "a few hundred million dollars." Investors will likely watch for any comments on tariffs from executives during the post-earnings call after larger rival Johnson & Johnson (JNJ.N), opens new tab on Wednesday halved its expectations for such costs this year to about $200 million. analyst Robbie Marcus said the company's results balance strong underlying growth trends in diabetes care and heart devices against a muted forecast update. Meanwhile, Abbott said on Thursday it planned to build a manufacturing facility in Georgia by 2028 to support its cardiovascular business, as companies seek to mitigate the tariff impact by moving manufacturing to the U.S. This follows the company's April announcements for manufacturing and research projects in Illinois and Texas, which are expected to go live by the end of the year. Sales of Abbott's continuous glucose monitoring (CGM) devices, which include the FreeStyle Libre series and Lingo, jumped 21.4% to $1.9 billion in the second quarter. CGM makers such as Abbott, Dexcom (DXCM.O), opens new tab and Medtronic (MDT.N), opens new tab are riding a surge in demand as diabetes awareness rises, insurance coverage expands, and patients embrace finger-prick-free technology. Abbott's quarterly revenue came in at $11.14 billion, beating expectations of $11.07 billion, according to data compiled by LSEG. On an adjusted basis, the company reported a profit of $1.26 per share for the second quarter, compared with analysts' average estimate of $1.25.


Daily Mail
2 hours ago
- Daily Mail
Former Super Bowl champion dies at 38 after cancer battle
Bryan Braman (pictured), a former NFL defensive end and member of the Super Bowl LII-champion Philadelphia Eagles, has died at 38 after battling a rare and aggressive form of cancer. His agent, Sean P. Stellato, confirmed his death Thursday. The Spokane, Washington native leaves behind two daughters. A journeyman edge rusher who attended three colleges before stints with the Houston Texas, Eagles, New Orleans Saints and Eagles again, Braman primarily contributed on special teams and once blocked a punt in a divisional-round playoff game. The Eagles' Super Bowl LII victory in February of 2018 was his final appearance in the NFL. Diagnosed in February, Braman's unspecified condition was later revealed in a GoFundMe drive aimed at covering his medical expenses. His former Texans teammate, JJ Watt, personally donated $10,000, while others such as Emmanuel Acho spread the word on social media. A June 20 update by organizer William Jones explained that 'Bryan is home with his family after undergoing a Car-t cell reprogramming treatment program in Seattle.' Initially the Car-t cell reprogramming appeared successful and his cells started 'reproducing within his bone marrow,' according to Jones. But while the mass began shrinking, the 'cancer started fighting back,' Jones explained. 'Bryan has not given up,' Jones wrote. 'He is looking into other trial treatment programs, and is determined to never give up.' The GoFundMe campaign raised nearly $90,000 for Braman. 'At Stellato Sports, Bryan Braman has always stood for strength, resilience and leadership,' Stellato told KPRC 2 in Houston prior to his death. 'He is a pillar and a staple of the underdog.' Although he went undrafted out of Idaho in 2011, Braman developed a bit of a cult following as a special teams contributor in Houston, blocking several punts, including one for a touchdown. He was named as a Pro Bowl alternate in 2012. Braman moved on to Philadelphia in 2014 and New Orleans in 2017, but suffered an injury and was placed on injured reserve before being released. That proved fortuitous for Braman, who signed with the Eagles in December before blocking a punt from the Atlanta Falcons' Matt Bosher in a 15-10 divisional-round playoff win. Braman later recorded a single tackle in the Eagles' 41-33 Super Bowl LII win over the New England Patriots in February of 2018. But his biggest contributions for the Eagles may have come in the locker room, according to former teammate Chris Long. '... we had a guy named Bryan Braman, special teams guy, looks like he's in a biker gang, long hair,' Long told the Ryen Russillo podcast in 2020. 'Bryan Braman was an absolute psychopath and he was like our cameo speech guy. And sometimes he would just, real impromptu, start screaming and looking like a [expletive] hedgehog, knocking [expletive] over in the locker room, eyes bulging out of his head. And, of course, he did look like a Sons of Anarchy dude so you were like, yeah, I'm listening. But Braman got going Super Bowl Sunday and I was like, "Yeah, you got it, bro." Since then, Braman has cameo'd in a Jake Miller country music video, while making the occasional public appearance at celebrity flag football or basketball events.