“We continue to take a cautious outlook on medical cost trends in this book and, combined with lower membership, we expect lower contributions from this business in 2025.”

In context

“elp 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 trends in this book and, combined with lower membership, we expect lower contributions from this business in 2025. Finally in our individual exchange book of business, we saw continued acceleration of medical cost trends driven by the specialist, inpatient and ambulatory categories. As we discussed on prior calls, we made meaningful price adjustments in our offerings for this product in 2025 which will lead to a significant rationalization of our membership while also shifting mix towards bronze plans. Taken together, these actions should improve results in our individual exchange offerings in 2025. Days claims payable at the end of the quarter was 44 days, down 0.6 days sequentially, primarily reflective of seasonality. DCP was down 1.9 days from the prior year quarter, primarily driven by growth in our Medicare business and the impact of increased pharmacy trends. We remain confident in the adequacy”