“So the margins that we're anticipating consistent with the changes we've announced today are still within our targeted margin range for Medicare Advantage for 2025.”

In context

“that we aspire to as an organization. Thank you very much. Next question? Operator: And we'll move to our next question from Stephen Baxter with Wells Fargo. Stephen Baxter: Yeah, hi, thanks. Just a follow-up on the trend discussion. Could you talk about where MA margins are now expected to shake out inside your 2025 guidance? And what you think is a reasonable timeline for covering the target margins? And whether there's any change to what you're thinking is as a reasonable long term margin target in this business post V28 and some of the issues you have adapting to it? And then again, the confidence level you can improve any margins in 2026 if trends stays at this level? Andrew Witty : Stephen, thanks so much. I'll ask Tim to respond to that. Tim Noel: Thanks, Stephen, for the question. So the margins that we're anticipating consistent with the changes we've announced today are still within our targeted margin range for Medicare Advantage for 2025. As we look forward to 2026 and we include the increases in care activity that we're seeing both in the 2025 portion of our bid and also pricing for 2026. At this distance, we can accommodate those care activity levels and return to the historical planning target levels that we've always historically assumed. Operator: Our next question comes from Erin Wright with Morgan Stanley. Erin Wright: Great. Thanks for taking my question. So on the policy front, I guess, what is your latest thinking in terms of just PBM reform? Your model has obviously evolved on that front, but also Medicaid funding cuts and what sort of permutations you could anticipate there and your ability to navigate that? Andrew Witty : Yes, Erin, thanks so much. Let me ask Patrick Conway to respond to you on the PBM side an”