Elevance Health Beats Profit Estimates Despite Stock Slide

Elevance Health has warned of high medical costs for the year due to increased claims from Medicaid members, leading to a nearly 7% drop in its shares. The insurer expects more claims in the second half of the year from sicker patients, which could offset revenue growth. This trend has also affected shares of rival insurers like Centene and Molina Healthcare. Despite this, Elevance's second-quarter adjusted profit beat estimates, driven by its health services unit Carelon and growth in Obamacare and commercial health plans.