A Weak Near-Term Outlook Does Not Erase Elevance's Long-Term Competitive Advantages

Elevance Health continues to capitalize on its enviable position as the exclusive licensee of the Blue Cross Blue Shield brand in 14 states. We believe that the Blue Cross Blue Shield brand is the most recognizable and trusted franchise in the US health insurance industry. As the largest Blue Cross Blue Shield operator, Elevance only lags UnitedHealth in US medical membership, which is particularly impressive given Elevance's limited geographic reach compared with UnitedHealth's national network. Specifically, Elevance's market share dives deep in licensed states where it insures about one out of every 3 people. This high local market share appears particularly valuable in health insurance since medical-care providers typically only operate in a limited geographic area, making local market share the most relevant to most reimbursement negotiations with caregivers.