“With 2026 being the final year of V28 phase in, you should expect 2026 value-based care margins to remain relatively consistent with the one percent margin we are achieving this year. And then begin to advance again in 2027 and beyond.”

In context

“covery in value-based care. We've aligned our 2026 benefits and product portfolio and footprint with our payer partners to address the final year of V28 headwinds. We plan to cease arrangements for about two hundred thousand patients largely and fully accountable of the PPO patients we serve today. We expect to keep narrowing our exposure beyond 2026. We are increasing rates to reflect the higher risk profiles and acuity we are seeing and expect to continue. We believe the combination of these activities will mitigate about half the remaining $4 billion V28 headwind in 2026. The remainder of our offset will come from operating cost discipline, and consistent execution of our care programs, which enhance engagement, diagnosis accuracy, and quality outcomes, and reduce overall cost of care. With 2026 being the final year of V28 phase in, you should expect 2026 value-based care margins to remain relatively consistent with the one percent margin we are achieving this year. And then begin to advance again in 2027 and beyond. We are optimizing our portfolio of clinical practices. We are managing our fee for service and fully accountable risk practices to align with performance expectations. Transitioning to partial risk or service arrangements where necessary, and exiting fully accountable products in certain markets. Third, we are aggressively advancing operational disciplines across our portfolio of businesses. More concentrated operating model I mentioned earlier plays into more standardized approaches which predictable outcomes, and lower operating costs. We will complete the final stages of our technology integration which will enable meaningful advances with emerging technologies, like AI to drive efficiency gains. For 2026, we expect to deliver almost $1 billion in cost reduction. Finally, beyond value-”