“Based on our work to date, we were successful in identifying actions that, at a minimum, will offset the return of certain variable expenses in 2025 as we work to drive further efficiencies across the enterprise over the coming years.”

In context

“argin recovery in the Aetna business. Shifting now to our outlook for 2025, as David mentioned, we are establishing our initial full year 2025 guidance for adjusted EPS in a range of $5.75 to $6.00. Consistent with past practice, this range does not assume the recurrence of prior year reserve developments, which contributed approximately $0.18 to our 2024 adjusted EPS results. After excluding the favorable impact of prior year reserve development, our initial 2025 adjusted EPS guidance represents year-over-year growth of approximately 10% at the low end of the range. We believe this represents an appropriately achievable baseline with opportunities for outperformance. Incorporated across our guidance elements is the initial down payment on our multi-year $2 billion cost efficiency effort. Based on our work to date, we were successful in identifying actions that, at a minimum, will offset the return of certain variable expenses in 2025 as we work to drive further efficiencies across the enterprise over the coming years. Now let’s turn to some of the segment details. I’ll start with our healthcare benefits segment. We expect aggregate membership to decline by over 1 million members, primarily driven by reductions in our individual exchange and Medicare products. We estimate that membership in our individual exchange block could contract by over 800,000 lives, and we’ll have greater visibility when all effectuated members have paid their premiums by the end of March. We also expect our Medicare Advantage membership to end the year down a high single digit percentage from year end 2024. This is consistent with the guidance we have been giving investors since last summer and reflects strong execution by our teams as they made the difficult choices necessary to improve Medicare Advantage profitability in 2025”