“We are cautiously optimistic that our benefit design changes in 2025 will help alleviate some of this supplemental benefit pressure.”

In context

“arter, as well as higher levels of favorable prior period reserve development. While medical trends remained elevated, the experience we observed to date was less severe than the trends we assumed in the downside scenario we discussed last quarter. Importantly, during the quarter we experienced positive prior period reserve development across all lines of business primarily related to second and third quarter dates of service. In our Medicare book, continued elevated trend levels were attributable to the same categories we discussed last quarter, including inpatient, outpatient, supplemental benefits, and pharmacy. Relative to our downside scenario discussed on the third quarter call, we did see some moderation of inpatient trends while supplemental benefit costs remained stubbornly high. We are cautiously optimistic that our benefit design changes in 2025 will help alleviate some of this supplemental benefit pressure. In our Medicaid business, acuity remained consistent with the latter part of the third quarter as redeterminations have largely concluded across our state footprint. We continue to work closely with our state partners to align rates with the changes in acuity. During the quarter, we made additional progress on rate updates, and with over 40% of our book having re-priced in early January 2025, we have line of sight to a mid-4% [indiscernible] rate increase. Our overall rate advocacy efforts are currently on track. In our group commercial risk book, fourth quarter trends remained elevated and, similar to others in the industry, we experienced some pressure on our stop loss business, which represents less than 3% of our 2024 premiums. We continue to take a cautious outlook on medical cost tr”