“First, there was about $100 million of expense favorability, which is primarily timing and will come back over the remainder of the year.”

In context

“ly encouraged about the progress, and proud of the team for what they’ve done. Tom, I’ll turn it over to you, just for more detail on the trend part. Tom Cowhey: Great, morning Justin. As you look at the quarter, if you strip out the premium deficiency reserve, the underlying Aetna business beat by about a billion dollars, so we had strong prior period reserve development off the 12/31 reserves which, as I noted in the prepared remarks, was partially offset by some out-of-period revenue changes, and so net, those two are worth about $400 million, which was the driver of the increased guidance this morning. As you look at the current period, the upside is almost entirely driven by Medicare, so the other businesses are largely going to offset. Inside Medicare, there’s a few things going on. First, there was about $100 million of expense favorability, which is primarily timing and will come back over the remainder of the year. As you look at the core Medicare trends, they’re running consistent with to slightly better than our outlook, and as Steve said, they’re showing early signs of stabilization. First quarter in-patient trends are generally consistent with the full year ’24. We’ve also seen some modest favorability in outpatient, but medical pharmacy trends remain stubbornly high. Outside of the core trends, as I noted, we saw strong seasonal performance out of Part D, and we also saw strong year-over-year improvement in our supplemental benefit trends, but we haven’t pulled through this favorability until we see more data. Then turning last, just to close out, your specific question on group, that is a place where we continue to watch. Specifically in-patient trends on that block have remained quite high, a”