Increased Medicare and Medicaid utilization, premium deficiency reserves, higher acuity in Medicaid, and potential negative impact of lower Medicare Advantage star ratings pose significant risks to the Health Care Benefits segment's operating income. Pharmacy client price improvements and loss of a large client threaten Health Services segment revenue. Changes in capital markets and potential downgrades in debt ratings could increase financing costs. Ongoing opioid litigation and other legal proceedings present substantial, uncertain liabilities.
Financial Upside
Growth in Medicare Advantage and individual exchange plans, new business from Cordavis, Oak Street Health, and Signify Health acquisitions, and improved drug purchasing could positively impact segment revenues. The company expects benefits from cost-saving initiatives and investments in efficiencies. Continued share repurchases are a potential source of shareholder value.
