Health Insurance Giant Shaken by Medicare Turmoil, 12 Trillion Won Vanishes in a Day

Elevance Health (NYSE: ELV) shares tumbled more than 14% on the New York Stock Exchange on January 27, closing at $323 and driving its market capitalization down to about $71.8 billion. In a single day, roughly $9 billion was wiped out as a broader selloff in the health insurance sector struck the company.

The decline came after industry leader UnitedHealth Group reported a sharp drop in fourth-quarter net income and said its 2027 Medicare Advantage payment rate would rise by only 0.09%. Fears of rising medical costs and weakening profitability have since rippled across to Elevance Health.

Market projections that Elevance Health’s fourth-quarter medical loss ratio could exceed 92% have further eroded confidence in health insurers, traditionally viewed as defensive stocks. Elevance is set to report its fourth-quarter and full-year 2025 results early on January 28 Eastern Time, and investors are closely watching guidance on margins and medical loss ratios in its Medicare and Medicaid businesses.

Despite the steep selloff, Wall Street consensus remains at a “moderate buy” with an average price target around $400, suggesting potential for heightened volatility after the earnings release.

Formerly known as Anthem until its 2022 rebranding, Elevance Health has transformed from a traditional health insurer into an integrated healthcare platform under its Carelon and WellPoint brands. Through its Blue Cross and Blue Shield affiliates, the company provides commercial and government insurance, pharmacy services, behavioral health, and home healthcare to more than 100 million customers in the U.S., making it the industry’s second-largest player after UnitedHealth.