Jason Cassorla

Filton declined to forecast, citing third-party actuaries and industry-wide claim severity, and pointed to tort reform lobbying.

Filton conceded outpatient growth undershot plan and framed Talkspace as the accelerant that could prompt an outlook revisit.

Filton confirmed $120-130M DPP benefit in Q1 was guided. Back-half ramp driven by: new facility contributions (Cedar Hill, Florida, 178 new beds), behavioral volume improvement, outpatient revenue growth, and wage moderation in behavioral.

Filton cited two factors: 2025 staffing investments now allowing greater patient capacity, and improved outpatient focus capturing shifting demand. Views volume trajectory as upward.

Filton said acuity-adjusted LOS already below pre-pandemic levels. Single biggest obstacle to further reduction is subacute capacity scarcity in skilled nursing and long-term rehab. Expects marketplace supply to improve over time alongside internal technology initiatives.

Filton said 4-6% behavioral revenue growth should exceed cost inflation. 2025 headcount investment of 3.1% Q4 growth will moderate in 2026 as positions are filled. Outpatient margins better than inpatient, so growing outpatient faster helps overall margin expansion.

Filton said payer behavior hasn't materially changed. Length of stay holding due to aggressive documentation practices. Only North Carolina has enacted actual Medicaid behavioral cuts, representing just 2% of UHS behavioral beds.

Filton detailed the bridge: +$140M DPP ($115M D.C. + $25M misc), -$35M malpractice reserve, -$18M legal settlement = ~$90-95M net increase. Core business trends assumed to continue at prior quarter levels.

Filton said acute revenue at 5.7% is on target. Q2 skewed more to pricing than volume, driven by favorable Commercial/Exchange payer mix shift from Medicaid. Excluding West Henderson, would be low 6%s.

Filton described two growth channels: improving step-down patient capture from existing hospitals, and opening 10-15 new freestanding outpatient facilities annually with ~$1M capital each.

Brian detailed the ~$500B specialty pharmacy TAM, Shields serving 80+ health systems and 1,000+ hospitals, and three growth vectors (secular growth, low management-company penetration, Shields-Evernorth synergies). Direct.

Ann attributed MCR favorability to broad-based fundamentals plus flu, weather deferrals, and bronze plan mix. Q2 MCR expected slightly above full year high end due to steeper seasonality post-Medicare divestiture.

Ann confirmed high end of 8-12% growth target including Shields contribution. Expectations consistent with Q3 commentary. Shields details not broken out separately but built into the high-end growth expectation.

Brian clarified growth off full year guide of at least $4.125B with no adjustments. National accounts flat to slightly declining for 2026, Select segment continues to grow, individual exchange membership expected to decline commensurate with industry.

Ann cited client mix (largest clients growing fastest with lower margins) and drug mix (higher-priced drug sales inflate revenue more than margins). Brian described CuraScript as low single-digit margin distribution with high-margin fee-based enablement services as separate growth opportunity.

Morgan said fee-based/self-funded commercial is performing well with rising persistency, a strong 2027 national-account pipeline, and prior clients moving back to Anthem.

Gail outlined three pillars: actions already in motion from 2025-2026 on pricing and care management, maturing 2026 investments stepping up returns, and multiple independent levers across health benefits and Carelon.

Pete quantified Carelon underlying growth excluding affiliated headwind: services high teens to low twenties, Rx low double-digit. One large external services client moved from risk to fee basis as main headwind. Best year ever for both services and Rx external sales. Mid-single-digit affiliated membership impact.

Gail said it is premature to consider state exits given constructive and responsive engagement from state partners. Always monitoring rate adequacy but current trajectory positive.

Answered the trend question with both price and utilization detail, but declined to size the site of service contribution.

Celeste explained Q1-to-Q2 seasonality less pronounced than prior year due to normalized PPD levels. End of 2025 reserving was more regular than end of 2024, resulting in less PPD release in Q1 2026 vs Q1 2025.

Celeste confirmed ~$550M+ incremental investments in 2025. Not currently contemplating incremental investments for 2026. Stars spend consistent on absolute basis but down significantly on PMPM basis due to 25% membership growth. Will be transparent if they decide to make additional investments.

Celeste expects similar trend levels: mid-to-high single digit medical and low double digit pharmacy. Clinical excellence trend-bend opportunity is one of larger transformation levers but too early to size.

Mike broke down ER volume impacts (140bps respiratory, 50bps storm) and outpatient surgery weakness in hospital ortho and low-acuity ASC lines.

Mike confirmed guidance assumes uninsured growth from exchange loss. Uninsured patients reserved immediately as uncompensated care. Bronze enrollees have lower collection rate than silver but patient balance impact assessed as relatively immaterial.

Mike walked through hurricane timeline: Q1 flat, Q2 slightly negative, Q3 again about flat combined. All $100M improvement in Q4. NC volumes recovered but payer mix deteriorated with elevated premium labor.