Elevance makes a late cut to its 2024 forecast after seeing trouble in Medicaid

Shares of Elevance tumbled early Thursday after the insurer said rising Medicaid costs prompted a 2024 forecast cut less than three months before the year’s end. The Blue Cross-Blue Shield insurer said it was dealing with a “timing mismatch” between Medicaid rates and higher claims from its customers. The company dropped its forecast for 2024 adjusted earnings to approximately $33 per share after predicting at least $37.20 in July. Wall Street expects $37.25 per share, according to the data firm FactSet. Insurers typically act conservatively with their forecasts this late in the year.