Eagle Capital Management, LLC on Elevance Health, Inc.
Thesis
Elevance is part of Eagle's 13% managed-care allocation. The industry combines significant scale advantages with structural growth above the broader economy, but recent cost and pricing pressures have depressed margins. Eagle believes those conditions have bottomed and expects a multi-year improvement in margins and earnings, with AI projects providing opportunities to lower costs and improve service quality.
“These managed care companies have significant scale advantages in a consolidated industry that outgrows the overall economy.”
Key risks
- Medicare Advantage and Medicaid cost and pricing pressures may remain elevated.