Medical Cost TrendsGuidance assumes medical cost trends remain at elevated levels in 2H24, with Part B drugs and IP admissions the primary drivers.
Revenue GuidanceManagement reduced 2024 revenue guidance by $125mm at the midpoint to the range of $6.01bn - $6.04bn vs their previous guide of $6.13bn - $6.18bn.
Revenue Impact FactorsDespite the strong membership growth, the retroactive termination of contracts, and the change in payer and member mix, resulting in a lower overall premium yield, are the reasons for the guide down in revenue.