Elevance Health

Elevance Health, Inc.

Company type	Public
Industry	Health insurance
Predecessor	Anthem, Inc.
Founded	1946 in Indianapolis, Indiana, United States
Headquarters	Indianapolis , United States
Area served	United States (15 states)
Key people	Elizabeth E. Tallett (Chairman), Gail Koziara Boudreaux (President & CEO)
Products	Medical, pharmaceutical, dental, behavioral health, long-term care, and disability insurance plans
Website	elevancehealth.com

Elevance Health, Inc. is a prominent American for-profit health insurance company, previously operating under the name Anthem, Inc. until June 2022. Its range of offerings encompasses medical, pharmaceutical, dental, behavioral health, long-term care, and disability insurance plans, delivered through affiliates including Anthem Blue Cross and Blue Shield, Anthem Blue Cross in California, Wellpoint, and Carelon. As the largest for-profit managed healthcare organization within the Blue Cross Blue Shield Association, Elevance Health served 46.8 million members as of 2022.

In 2021, Elevance Health secured the 20th spot on the Fortune 500 list by revenue and was ranked 78th on the Forbes Global 2000 list in 2023. The company is headquartered in Indianapolis, Indiana, with key leadership comprising Chairman Elizabeth E. Tallett and President & CEO Gail Koziara Boudreaux. Its operational strategy combines integrated healthcare services with insurance products to sustain substantial market share and foster growth nationwide.

Anthem

Established in 1946 in Indianapolis, Indiana, Anthem began as Mutual Hospital Insurance Inc. and Mutual Medical Insurance Inc., eventually dominating approximately 80% of Indiana’s medical insurance market by the 1970s.

By 1972, Blue Cross of Indiana and Blue Shield of Indiana formed a joint operating agreement. In 1985, these entities merged into Associated Insurance Companies, Inc. (later renamed The Associated Group), a holding company that continued to use the "Anthem" brand.

From 1989 to 1991, the company expanded its footprint through acquisitions such as American General Insurance Co. ($150 million) and The Shelby Insurance Co. ($125 million). It also established Acordia, an insurance brokerage firm that acquired American Business Insurance ($130 million) and Federal Kemper Insurance ($100 million) in 1993. That same year, The Associated Group merged with Southeastern Mutual Insurance Company, operator of Blue Cross and Blue Shield of Kentucky.

In 1994, the firm sold Raffensperger, Hughes & Co., Indiana’s largest investment bank, to National City Corp.. The following year it acquired Community Mutual Insurance in Ohio (with over 1.9 million policyholders), launching Anthem Blue Cross and Blue Shield. In 1996, it rebranded as Anthem Insurance Company.

Growth continued through acquisitions including Blue Cross and Blue Shield of Connecticut in 1997; and Blue Cross and Blue Shield of New Hampshire, Colorado, and Nevada in 1999—adding 850,000 policyholders through debt financing. At this point, Anthem served 2.4 million PPO members and 964,000 HMO enrollees. In 2000, it acquired Blue Cross Blue Shield of Maine.

Following the enactment of the Gramm-Leach-Bliley Act in 1999, Anthem underwent demutualization and launched an IPO, becoming the fourth-largest publicly traded managed health care company in the United States.

In 2002, Anthem purchased Trigon Healthcare of Virginia, the state’s largest insurer at $4.04 billion, increasing its membership to nearly 11.9 million.

Blue Cross of California

Blue Cross of California served as the foundation for WellPoint Health Network Inc., created in 1982 by merging Blue Cross of Northern California (established in 1936) with Blue Cross of Southern California (established in 1937), setting the stage for WellPoint’s managed care operations.

In 1992, WellPoint was formed to oversee Blue Cross of California’s managed care business. By January 1993, this segment was spun off as a publicly traded entity named WellPoint Health Networks Inc., with Blue Cross retaining an 80% ownership stake and voting control.

By 1996, Blue Cross of California transitioned into a for-profit corporation under WellPoint Health Networks as its parent company. That year marked WellPoint’s acquisition of Massachusetts Mutual Life Insurance Company’s group life and health subsidiaries for approximately $380 million, elevating it to the position of second-largest publicly held managed health insurer in the U.S., serving four million policyholders. In 1997, WellPoint expanded into Michigan, Texas, and the mid-Atlantic region by acquiring John Hancock Financial’s group health and life businesses for $86.7 million.

WellPoint pursued further expansion through strategic purchases: PrecisionRx in 2000; Rush Prudential Health Plans ($204 million) and Cerulean Companies (Blue Cross Blue Shield of Georgia) in 2001; Missouri-based RightChoice Managed Care for $1.5 billion in 2002; along with MethodistCare of Houston and HealthLink.

In 2003, WellPoint added Golden West Dental and Vision (California) along with Cobalt—which included Blue Cross and Blue Shield United of Wisconsin—to its portfolio.

The merger between Anthem Insurance Company and WellPoint Health Networks in 2004 created WellPoint, Inc., operating under the Anthem brand across eleven states offering Blue Cross and Blue Shield products.

Acquisitions persisted with Lumenos—a leader in consumer-driven healthcare—for $185 million in 2005; WellChoice in New York for roughly $6.5 billion that same year, broadening its Blue Cross Blue Shield license coverage to fourteen states; followed by American Imaging Management—a radiology benefit management firm—in 2007.

Leadership changes included Leslie Margolin serving as president of California operations from 2008 to 2010. The company also acquired Resolution Health (specializing in medical data analytics) in 2008 and DeCare Dental in 2009.

In 2011, WellPoint expanded into elder care by acquiring CareMore based in Cerritos, California. The next year it purchased Amerigroup for $4.9 billion to leverage Medicaid expansion opportunities under the Affordable Care Act.

CEO Angela Braly stepped down in August 2012 amid investor concerns.

On August 13, 2014, WellPoint announced it would rebrand as Anthem, Inc., effective December that year—reflecting its evolved corporate identity and market positioning.

Anthem, Inc.

In February 2015, Anthem completed the acquisition of Simply Healthcare Holdings, a Florida-based company specializing in Medicaid and Medicare managed care. By June 2015, Anthem proposed a cash and stock offer exceeding $54 billion to acquire Cigna, with the goal of forming the largest health insurer in the United States. Nevertheless, a federal court blocked this merger in 2017 due to antitrust concerns, prompting Cigna to withdraw from the deal.

In October 2017, Anthem terminated its pharmacy benefit management (PBM) agreement with Express Scripts, alleging $3 billion in excessive charges, and subsequently launched its own PBM division named IngenioRx. Following this, Anthem secured a five-year agreement with CVS Health. Meanwhile, Cigna announced its intention to acquire Express Scripts for $58 billion.

Gail Koziara Boudreaux was named CEO in November 2017, providing new strategic direction for the company. The following year, Anthem expanded its headquarters and entered into a lease for a technology center located in Atlanta to foster innovation and support growth initiatives.

Continuing its acquisition approach, Anthem purchased behavioral health provider Beacon Health Options in March 2020. In February 2021, it acquired the Puerto Rico subsidiaries of InnovaCare Health, which included both Medicare Advantage and Medicaid plans. Later that year, Anthem declared plans to acquire Integra Managed Care in New York, finalizing the deal by May 2022.

On June 28, 2022, Anthem officially rebranded as Elevance Health, Inc. and updated its stock ticker symbol from "ANTM" to "ELV," signaling a shift in its business strategy and market presence.

Elevance Health

On January 23, 2023, Elevance Health announced a definitive agreement to purchase Blue Cross and Blue Shield of Louisiana, broadening its operations to cover 15 states and adding approximately 1.9 million members. Additionally, in 2023 Elevance revealed plans to rename its Amerigroup division as Wellpoint beginning in 2024.

Subsidiaries

The subsidiaries under Elevance Health include:

• Amerigroup
  • Medicaid services in District of Columbia
  • Medicaid services in Georgia
  • Medicare Advantage plans in New Mexico
• Anthem Blue Cross
  • California
    • Blue Cross of California Partnership Plan (Medicaid)
  • Upstate New York
• Anthem Blue Cross Blue Shield
  • Colorado
  • Connecticut
  • Georgia
  • Indiana
  • Kentucky
    • Medicaid services via Anthem Blue Cross and Blue Shield
  • Maine
  • Missouri (excluding parts of Kansas City)
  • Nevada
    • Medicaid coverage through Anthem Blue Cross and Blue Shield Healthcare Solutions
  • New Hampshire
  • Downstate New York
  • Ohio
  • Virginia (excluding certain counties)
    • Medicaid services branded as HealthKeepers
  • Wisconsin
• Carelon Behavioral Health
  • Operating in California, Kansas, Pennsylvania
• Carelon Global Solutions India
• Freedom Health (Florida)
• Golden West Dental & Vision (California)
• HealthSun (Florida)
• MMM (Puerto Rico)
• Optimum Healthcare (Florida)
• Simply Healthcare (Florida)
• UniCare (West Virginia)
• WellPoint
  • Providing Medicaid and/or Medicare Advantage plans across Arizona, Iowa, Maryland, Massachusetts, New Jersey, Tennessee, Texas, and Washington

Joint ventures

Elevance maintains several joint venture partnerships, including:

• Anthem | MaineHealth in Maine
• Blue Medicare Advantage in collaboration with Independence Blue Cross in Pennsylvania
• Colorado Community Health Alliance alongside Centura Health and other partners in Colorado
• Healthy Blue Kansas, formed with Blue Cross organizations in Kansas
• Healthy Blue Louisiana, in partnership with Blue Cross Blue Shield of Louisiana
• Summit Community Care based in Arkansas
• Centers Plan for Healthy Living operating in New York and Florida

Quality of care

In 2011, the patient advocacy office of California assigned Anthem a rating of 2 out of 4 stars for "Meeting National Standards of Care," which improved to 3 out of 4 stars by 2014. By 2022, twenty-one Medicaid plans affiliated with Elevance Health had received health equity accreditation from the National Committee for Quality Assurance (NCQA), demonstrating a sustained dedication to enhancing quality and equity within healthcare services.

Charitable donations

WellPoint committed $30 million over three years starting in 2007 through its charitable foundation to support uninsured individuals. However, by 2009, only $6.2 million had reportedly been allocated. The company maintained that it fulfilled the entire $30-million pledge by mid-2009 but did not provide detailed financial disclosures.

2007 DMHC Investigation

In 2007, the California Department of Managed Health Care (DMHC) launched an investigation into Anthem for rescinding policies of patients suffering from expensive or life-threatening conditions. The DMHC determined that all policy cancellations reviewed were unlawful. Anthem Blue Cross resolved the matter in July 2008 by agreeing to a $10 million settlement without admitting fault, reinstating coverage for 1,770 affected policyholders, and covering associated medical expenses.

2010 Reuters Exposé

Reuters revealed in April 2010 that WellPoint employed a computer algorithm designed to flag women recently diagnosed with breast cancer for policy cancellation. This software initiated fraud investigations against these patients as a basis to terminate their coverage. WellPoint defended the tool as one that analyzed diagnostic codes related to pre-existing conditions during application processing. The report generated significant public backlash and led Health and Human Services Secretary Kathleen Sebelius and President Barack Obama to call for an end to this practice.

In 2011, Anthem discontinued policies for members who paid premiums via credit card without providing advance warning, further raising concerns about customer service practices.

Opposition to healthcare reform

In August 2009, Anthem, the largest for-profit insurer in California, encouraged its employees to oppose healthcare reforms introduced during the Obama administration. Consumer Watchdog alleged that WellPoint pressured staff to lobby against the reforms, potentially violating California labor laws that prohibit coercive political activities. Although no formal complaints or investigations followed, this episode underscored friction between the company's business objectives and regulatory frameworks.

Between 2010 and 2011, WellPoint executives held monthly meetings with other leading insurers to strategize on minimizing the effects of the Patient Protection and Affordable Care Act, reflecting concerted lobbying efforts aimed at safeguarding market position amid evolving regulations.

Maine premium adjustments

In 2009, Anthem Health Plans of Maine, a subsidiary of WellPoint, initiated legal action against the state of Maine seeking authorization to implement higher premium increases. Since insurance providers in Maine operate under licenses issued by the Bureau of Insurance, Anthem needed the state's approval before modifying rates. The court ruled unfavorably for Anthem, emphasizing that the Maine Insurance Code does not require the Superintendent to factor in profitability when sanctioning rate changes.

California rate hikes

In February 2010, WellPoint declared premium increases reaching as much as 39% for certain individual Anthem Blue Cross policies in California, prompting investigations by both federal and state authorities. This announcement followed a previous 68% surge in premiums the year before, which had already attracted extensive media scrutiny and public criticism as a reflection of escalating healthcare expenses nationwide.

Anthem explained these steep hikes—up to quadruple the rate of medical inflation—as a consequence of a "death spiral": rising unemployment and falling wages caused healthier policyholders to drop coverage, resulting in a sicker insured population and higher costs. Facing political pressure and consumer dissatisfaction, Anthem delayed implementing the rate increase until May 1, 2010.

In response to the controversy, California Senator Dianne Feinstein introduced legislation aimed at empowering the federal government to block insurance premium increases deemed "unjustified."

WellPoint's expense reclassification

On March 17, 2010, WellPoint adjusted its accounting practices by reclassifying certain administrative expenses as medical care costs to align with Patient Protection and Affordable Care Act loss ratio rules. These regulations require insurers to allocate at least 80% or 85% of premiums toward healthcare services depending on the plan category.

Data breach from 2009 to 2010

In June 2010, Anthem alerted approximately 230,000 customers in California about a data security breach that exposed personal information. The breach resulted from a third-party vendor's failure to fully reinstate security protocols following an October 2009 system upgrade. A class action lawsuit emerged after a customer found her coverage application publicly accessible online. Attorneys involved confirmed that sensitive data had been exposed for five months. Additionally, Indiana Attorney General Greg Zoeller filed suit against Anthem seeking $300,000 in civil penalties due to delayed notification of the breach.

Coverage denial for cancer treatment

In May 2014, Anthem Blue Cross initially refused to cover hospitalization costs for a Sonoma County resident battling stage four cancer despite his payment of over $100,000 in premiums. After public outcry, Anthem reversed its position and approved the claim.

Data breach in 2015

On February 4, 2015, Anthem, Inc. revealed a significant cybersecurity incident involving unauthorized access to more than 37.5 million records containing personally identifiable information. The breach impacted multiple brands within Anthem’s portfolio such as Anthem Blue Cross, Blue Cross and Blue Shield of Georgia, Empire Blue Cross and Blue Shield, Amerigroup, Caremore, and UniCare. Although medical and financial details were reportedly untouched, exposed data included names, dates of birth, medical IDs, social security numbers, addresses, email addresses, employment information, and income figures.

Following the breach disclosure, Anthem provided complimentary credit monitoring services to affected individuals. Bloomberg News suggested potential involvement by Chinese state-sponsored actors; ultimately about 80 million records were compromised. In June 2017, Anthem consented to a $115 million settlement addressing claims of insufficient data security measures; these funds were designated for two years of identity theft protection for those impacted. In 2019, indictments were issued against two Chinese nationals connected to the attack. This event underscored critical cybersecurity weaknesses within the healthcare sector and led to increased regulatory attention as well as reputational harm for Anthem.

"Avoidable ER program"

Anthem has broadened its "avoidable ER program" since 2015, which denies payment for emergency room visits considered unrelated to covered medical conditions. Some patients were billed amounts surpassing $10,000 that Anthem declined to cover. A 2013 study published in the Journal of the American Medical Association revealed that 87% of patients initially classified as non-urgent were subsequently diagnosed with emergency conditions, calling into question the program's standards. Opponents contend that this policy breaches federal regulations by determining coverage based on final diagnoses rather than initial symptoms and raises safety concerns by compelling patients to self-assess before seeking emergency care.

Ignoring complaints

In 2017, Anthem was penalized $5 million by the California Department of Managed Health Care due to slow responses to consumer grievances, with the fine later reduced to $2.8 million following a settlement in 2019.

2019 litigation over coercive direct payments

Sovereign Health initiated legal action against Anthem in 2019, alleging that the insurer used direct payments to patients as leverage to coerce Sovereign’s addiction and mental health treatment centers into joining its network under unfavorable conditions.

Fraud in diagnostics

The Department of Justice filed a lawsuit against Anthem in March 2020, accusing the company of submitting false diagnostic information to inflate Medicare reimbursements. In October 2022, a judge ruled that Anthem must proceed with the lawsuit.

Medicare Advantage star rating dispute

In January 2024, Elevance Health filed a complaint with the Department of Health and Human Services (HHS) contesting modifications to the Medicare Advantage star rating system. The updated methodology led to significant rating reductions in 2024, affecting critical bonus payments.

Finances

For the fiscal year 2017, Anthem reported net earnings of US$3.843 billion on revenues totaling US$90.039 billion, marking a 6.1% rise compared to the previous year. By October 2018, its stock price exceeded $183 per share, with market capitalization surpassing US$69.1 billion.

Year	Revenue in mil. US$	Net income in mil. US$	Total assets in mil. US$	Price per share in US$	Employees
2005	44,614	2,464	51,287	60.61
2006	57,058	3,095	51,575	66.39
2007	61,168	3,345	52,060	71.13
2008	61,251	2,491	48,403	46.09
2009	64,940	4,746	52,125	41.67
2010	58,699	2,887	50,167	50.00
2011	60,711	2,647	52,163	60.91
2012	61,497	2,656	58,955	57.16
2013	71,024	2,490	59,575	72.27	48,000
2014	73,874	2,570	61,676	101.39	51,000
2015	79,157	2,560	61,718	140.42	53,000
2016	84,863	2,470	65,083	129.28	53,000
2017	90,040	3,843	70,540	183.12	56,000
2018	92,105	3,750	71,571	248.34	63,900
2019	104,213	4,807	77,473	268.65	70,600
2020	121,867	4,572	86,615
2021	138,639	6,104	97,460		98,200
2022	156,595	6,025	102,772		102,300

This financial summary demonstrates Anthem's steady revenue expansion and growing employee base through 2022 as part of its ongoing strategy to enhance market presence and global healthcare operations.

Recognition

From 2018 through 2022, the company earned a place on the S&P Dow Jones Sustainability Index. It was also recognized by Fortune as one of the 100 Best Companies to Work For. Additionally, between 2015 and 2022, the organization consistently appeared on the Corporate Equality Index's list of Best Places to Work for LGBTQ Equality.