| 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 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 is headquartered in Indianapolis, Indiana.
Investment rationale
Elevance provides US citizens 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 negotiates with healthcare providers on the level of reimbursement and also on how the provider is reimbursed. Switching to a fee-for-value model is expected to lead to lower and more predictable medical expenses. This is good for society (tax payer money can be redirected to other uses), but also good for Elevance as it makes it easier to control its medical expenses and thus maintain (or increase) margins.
Health care insurance increases access to health care facilities, improves financial protection and of course citizens' health status. Health insurance plans offer protection against high medical costs which is especially beneficial for low-income groups.
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.