Elevance Health (ELV) risk factors, FY2024 10-K

BUSINESS RISKS

1. 01If we fail to appropriately predict, price for and manage healthcare costs, the profitability of our products and services could decline, which could materially adversely affect our business, cash flows, financial condition and results of operations
2. 02disasters in connection with climate change, geopolitical instability and other public health crises; and new mandated benefits and treatment guidelines and changes to other regulations impacting our business
3. 03A significant reduction in the enrollment in our health benefits programs, pharmacy services or diversified products and services, particularly in states where we have large regional concentrations, could have an adverse effect on our business, cash flows, financial condition and results of operations
4. 04If we fail to responsibly use and protect data, or if such data is found to be inaccurate or unreliable, our business and customers could suffer adverse consequences
5. 05There are various risks and conditions associated with participating in Medicare and Medicaid programs, including payment rates, processes and timelines that are determined by the government, compliance with government contract requirements and regulatory oversight
6. 06different than our assumptions and estimates and could have a material adverse effect on our business, financial condition and results of operations
7. 07A change in our healthcare product mix may impact our profitability
8. 08If we fail to develop and maintain satisfactory relationships with hospitals, physicians, pharmacy service providers and other healthcare providers, our business, cash flows, financial condition and results of operations may be adversely affected
9. 09We are dependent on the success of our relationships with third parties for various services and functions
10. 10The failure to properly maintain the integrity or availability of our data, or to successfully maintain, protect and upgrade our information systems could adversely affect our business
11. 11We are subject to risks associated with our use of AI, which could adversely affect our business, reputation or financial results
12. 12We are subject to risks associated with pandemics, like the COVID-19 pandemic, as well as other extreme events, large-scale medical emergencies and public health crises, which could have a material adverse effect on our business, results of operations, and financial condition and financial performance

LEGAL, REGULATORY AND PUBLIC POLICY RISKS

1. 13We are subject to significant government regulation, and changes or proposed changes in the regulation of our business by federal and state regulators may adversely affect our business, cash flows, financial condition and results of operations and the market price of our securities
2. 14We are required to obtain and maintain insurance, licenses and other regulatory approvals to market certain of our products and services, to increase prices for certain regulated products and services and to consummate some of our acquisitions and dispositions
3. 15We are subject to various risks associated with our international operations
4. 16We face risks related to litigation
5. 17There are various risks associated with providing health benefits and other healthcare diversified products and services
6. 18Our pharmacy services business and pharmacy related operations are subject to risks and uncertainties that are in addition to those we face in our core healthcare business
7. 19Indiana law, other applicable laws, our articles of incorporation and bylaws, and provisions of our BCBSA license agreements may prevent or discourage takeovers and business combinations that our shareholders might consider to be in their best interest
8. 20The health benefits industry is subject to negative publicity, which could adversely affect our business, cash flows, financial condition and results of operations

STRATEGIC RISKS

1. 21We face competition in many of our markets, and if we fail to adequately adapt to changes in our industry and develop and implement strategic growth opportunities, our ability to compete and grow may be adversely affected
2. 22We have built a significant portion of our current business through mergers and acquisitions, joint ventures, strategic alliances and investments, and although we expect to pursue such opportunities in the future, we are subject to risks resulting from such business combinations
3. 23We face intense competition to attract and retain associates. Further, managing key executive succession and retention is critical to our success
4. 24Restrictions on our ability to obtain funds from our regulated subsidiaries could limit our ability to repurchase shares, pay dividends and meet our obligations and materially adversely affect our business, cash flows, financial condition and results of operations
5. 25We have substantial indebtedness outstanding and may incur additional indebtedness in the future, which could adversely affect our ability to pursue desirable business opportunities and to react to changes in the economy or our industry
6. 26A downgrade in our credit ratings could have an adverse effect on our business, cash flows, financial condition and results of operations
7. 27The value of our intangible assets may become impaired
8. 28The value of our investments is influenced by varying economic and market conditions, and a decrease in value may result in a loss charged to income