“On the D-SNP product, our intention is to reduce our supplemental benefits in certain areas, including some of the kind of FlexCards that we put in the market this year.”

In context

“used on the general enrollment block. It does not apply to D-SNP, and it does not apply to certain supplemental benefits as well, which we'll be very focused on to make sure we rightsize for 2025 pricing. As we think about tailwinds, though, Tom mentioned the Stars tailwind, which is about $700 million, assuming a stabilized membership, and I'll come back and talk about that a little bit. With respect to the pricing actions, we're going to be very focused on taking those pricing actions, as I mentioned, to incorporate the trends, but also be mindful of how we think about TBC. Stars does impact TBC in that it reduces the amount of allowance we have under the regs. But as I mentioned, there are opportunities we have to trim benefits around TBC, and we will be very focused on doing that. On the D-SNP product, our intention is to reduce our supplemental benefits in certain areas, including some of the kind of FlexCards that we put in the market this year. And so you'll see us reduce those benefits, and that allows us to capture margin without impacting TBC, and so that's important. The other point I'd make, and Karen and Tom alluded to it, we will be taking actions around certain service areas. So to the extent that we don't believe we can credibly recapture margin in a reasonable period of time, we will exit those counties. We will also be looking at areas where we believe that it makes sense to actually discontinue a specific product, then reintroduce a new product where TBC won't apply. And we'll be looking at those opportunities as well, being mindful of the member disruption and some of the churn that you might see. And so as we step back, we are very focused on margin over membership. Obviously, we're trying to create a stable”