Pelican Bay Capital Management, LLC on Elevance Health
Thesis
Pelican Bay believes Elevance is recovering from weakness in the Medicare insurance market as management reprices plans to account for higher medical costs. The company is also exiting unprofitable Medicaid programs, shifting pharmaceutical spending to its in-house PBM and taking share from UnitedHealthcare in commercial insurance. The thesis rests on improved pricing discipline and portfolio actions restoring profitability while the business continues to gain share. P(1) Pelican Bay Capital Manage…
“management successfully repriced plans to account for higher medical costs”
Key risks
- Renewed medical-cost pressure in Medicare