| Invested through |
|
|---|---|
| Asset Classes | Listed equity |
| Impact strategy | Impact Equities and Bonds |
| Bloomberg ticker | ELV US |
| ISIN code | US0367521038 |
| Industry group | Health Care Equipment & Services |
| Aligned with SDGs |
Elevance Health is one of the largest managed care organizations (MCOs) in the US, and the largest for-profit managed care company in the Blue Cross and Blue Shield Association (BCBSA). The BCBSA is a federation of 36 separate US health insurance companies. Elevance Health offers Medicare, Medicaid and FEHB insurance (government), as well as commercial employer-based insurance to over 40 million members through its BCBSA state subsidiaries. The company was formed by the 2004 merger of WellPoint and Anthem after both companies acquired several health insurance companies and currently employs more than 70,000 people.
Investment rationale
Elevance has a positive impact on the health and wellbeing of US citizens by providing them with access to healthcare, which is still necessary as there is no universal healthcare coverage in the US. Furthermore, Elevance can play an important role in transitioning the healthcare sector away from fee-for-service models to fee-for-value models, which should lead to more normal levels of healthcare utilisation and thus reduce growth of health care spending. Being the payor, Elevance has to negotiate with healthcare providers about the level of reimbursement and also about how the provider is reimbursed. If Elevance succeeds in convincing hospitals to switch to a fee-for-value model, it should lead to lower and perhaps more predictable medical expenses. This is good for society (tax payer money can be used for something else), but also good for Elevance as it make it easier to control its medical expenses and thus maintain (or increase) margins.
The provision of health care insurance leads to increased access to health care facilities, improved financial protection and an improved health status. Health insurance plans offer protection against high medical costs which is especially beneficial for low-income groups. With it, Elevance contributes to SDG 3 (good health and well-being) and SDG 10 (reduced inequalities).
Alignment with Triodos Transitions: 98% of company revenues is aligned with the Wellbeing Transition and 37% with the Societal Transition. The contribution to the Wellbeing Transition comes from 98% of revenues related to the impact objective Health Care. The contribution to the Societal Transition comes from 37% of revenues related to the impact objective Socioeconomic Advancement & Empowerment.