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Forbes
183 days

Elevance Health Bolsters Employer Insurance Business

1. Elevance acquires Verily’s Granular to enhance self-funded employer offerings. 2. Granular specializes in stop-loss and reinsurance solutions for self-funded plans. 3. Elevance's membership declined 2% due to Medicaid attrition; employer plans counteract drops. 4. The acquisition responds to rising healthcare costs and member exodus in Medicaid. 5. Elevance's employer segment growth contrasts slowed sales in government-subsidized healthcare.

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FAQ

Why Bullish?

Acquiring Granular positions Elevance more favorably despite challenges in Medicaid segments. The recent past saw competitors gain from strategic acquisitions that boosted their market offerings, indicating potential for ELV to strengthen similarly.

How important is it?

This acquisition can significantly strengthen Elevance's market position and service delivery, directly impacting competitive dynamics in self-funded segments.

Why Long Term?

Integration of Granular's capabilities may take time to realize full benefits. Historical investments in technology have shown long-term positive impacts in similar sectors.

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