“We expect increased membership decline as well as shifts into both level funded and self-funded product categories because of higher medical cost trends.”

In context

“inued cost trends and funding pressures and the need to support margin recovery, we have made significant adjustments to benefits. Additionally and unfortunately, given these pressures, we have made the difficult decision to exit plans that currently serve over six hundred thousand members. Primarily in less managed products such as PPO offerings. We have taken similar approaches for Medicare Supplement, Group MA, and standalone Part D pricing for next year. We will be watching the market closely at the 2026 Medicare offerings public. So we can better assess our market positioning and respond quickly. For commercial, because renewals occur over the course of the year, we are able to price for changes more dynamically. Our pricing will anticipate higher trend continuing into 2026 and 2027. We expect increased membership decline as well as shifts into both level funded and self-funded product categories because of higher medical cost trends. The individual exchange business, while we are prepared to continue to participate, the majority of the thirty markets we currently serve. We will approach them far more conservatively for 2026. We may need to make the difficult decision to exit select markets if we are unable to achieve the rates necessary for higher market-wide morbidity. Additionally, due to the projected expiration of premium subsidies across the ACA market, our membership should decline significantly. And we are mindful of the potential for adverse selection dynamics as we reprice these offerings for next year. In Medicaid, there remains a lag between funding levels and member health risk, and we expect this to continue into 2026. Resulting in additional margin compression in the business, including a loss within the”