“In 2025, we expect savings from this initiative to drive at least $500 million of adjusted operating earnings.”

In context

“D, both sources of incremental pressure in 2024. We currently project that we will improve Medicare Advantage margins between 100 and 200 basis points in 2025. This will be a significant first step to achieving our target margins of 4% to 5% over the next several years. For our individual exchange business, we had the opportunity to re-file our bids to reflect the latest risk adjustment data and prudently reflected those updates in our 2025 bids. As a result, we continue to expect profit improvement in that business in 2025. In Medicaid, we believe the dislocation between acuity and rates is temporary and will be largely resolved through the next pricing cycle. In Karen’s remarks, she highlighted the work our team has underway to deliver on a multi-year enterprise productivity initiative. In 2025, we expect savings from this initiative to drive at least $500 million of adjusted operating earnings. We are encouraged by our deliberate efforts to strengthen our outlook and generate meaningful positive momentum for 2025 and beyond. As is our customary practice, we will give more formal guidance later this year. With that, we will now open the call to your questions. Operator? Operator: Thank you. [Operator instructions] The first question today comes from Lisa Gill from JP Morgan. Lisa, please go ahead, your line is open. Lisa Gill: Thanks very much, good morning Karen and Tom. I just wanted to start with the health benefits business. If I go back to last quarter and we talked about the level of visibility that you had around cost trends, and then I heard your comments, Karen, that as you closed Q2, the trend accelerated, so really two questions here. One, can you talk about the level”