Company: ELV
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001156039-25-000010
Chunk: 204

Company: Elevance Health, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 204
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 costs, mix of business, benefit plan designs, provider reimbursement levels, processing system conversions and changes, claim inventory levels, claim processing and submission patterns, and operational changes resulting from business combinations. Favorable Developmentsby Changes in Key Assumptions 202420232022Assumed trend factors$(688)$(895)$(859)Assumed completion factors(1,043)(676)(10)Total$(1,731)$(1,571)$(869)The favorable development recognized in 2024 resulted primarily from completion factors developing more favorably than originally expected as well as a smaller but significant contribution from trend factors in late 2023.

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Elevance Health, Inc.Notes to Consolidated Financial Statements (continued)

The favorable development recognized in 2023 resulted primarily from trend factors in late 2022 developing more favorably than originally expected. Favorable development in the completion factors in late 2022 also contributed to the favorable development in 2023.The favorable development recognized in 2022 resulted primarily from trend factors in late 2021 developing more favorably than originally expected as well as a smaller contribution from completion factor development.The reconciliation of net incurred medical claims to benefit expense included in the consolidated statements of income is as follows:Years Ended December 31202420232022Total net incurred medical claims$123,639 $120,227 $112,545 Quality improvement and other claims expense3,928 4,103 4,097 Benefit expense$127,567 $124,330 $116,642 Incurred claims development, net of reinsurance, for the years ended December 31, 2024, 2023 and 2022 is as follows:Cumulative Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance202220232024Claim Years(Unaudited)(Unaudited)2022 & Prior$125,938 $124,367 $124,041 2023121,798 120,393 2024125,513 Total$369,947 Paid claims development, net of reinsurance, for the years ended December 31, 2024, 2023 and 2022 is as follows:Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance202220232024Claim Years(Unaudited)(Unaudited)2022 & Prior$110,597 $123,162 $123,849 2023107,146 119