Elevance Health (ELV) risk factors, FY2025 10-K

Elevance Health's FY2025 10-K, filed Feb 06, 2026, lists 27 risk factors in 4 groups. Against the prior year's 28: 2 new, 3 dropped, 8 substantially reworded.

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Risk factors listed
274 groups
New this year
2vs 28 last year
Dropped
3since the prior 10-K
Substantially reworded
8of those kept
Section length
13k wordsItem 1A

What the changes say

  • International operations expose Elevance Health to complex regulatory and anti-corruption compliance risks.

What changed since the prior 10-K

New

  • NewLEGAL, REGULATORY AND PUBLIC POLICY RISKS

    operations could be adversely affected. In the future, we may acquire or operate new businesses outside of the U.S., increasing our exposure to these risks

    Subsidiaries operating internationally face complex local and cross-border regulations, including anti-corruption laws and data protection mandates.

  • NewSTRATEGIC RISKS

    2021 Appropriations Act, which requires reporting of plan spending, the cost of plan pharmacy benefits, enrollee premiums and any manufacturer rebates received by the plan or issuer, may adversely affect our competitive position, cash flows, financial condition and results of operations

    The 2021 Appropriations Act mandates plan spending and rebate reporting, which could impact our competitive position and growth strategy.

Dropped

  • DroppedBUSINESS RISKS

    disasters 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

  • DroppedBUSINESS RISKS

    different than our assumptions and estimates and could have a material adverse effect on our business, financial condition and results of operations

    Climate change disasters and medical cost estimate variability risks.

  • DroppedLEGAL, REGULATORY AND PUBLIC POLICY RISKS

    We 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

Reworded

  • 84% rewrittenBUSINESS RISKS

    If we fail to appropriately predict, price for and manage healthcare costs, the profitability of our products and services could decline, which could adversely affect our business, cash flows, financial condition and results of operations

    Slight phrasing updates regarding medical cost prediction and pricing impacts on profitability and cash flows.

    Was: If 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

  • 70% rewrittenLEGAL, REGULATORY AND PUBLIC POLICY RISKS

    We are subject to various risks associated with our international operations

    Truncated text at the end of the risk description regarding international expansion challenges.

  • 68% rewrittenLEGAL, REGULATORY AND PUBLIC POLICY RISKS

    We 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

    Minor phrasing change from 'affect the way in' to 'affect how' existing laws apply to acquired entities.

  • 68% rewrittenBUSINESS RISKS

    There 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

    Updated potential impact wording from 'material adverse effect' to 'adverse effect' regarding government programs.

  • 57% rewrittenSTRATEGIC RISKS

    We 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

    Refined wording on industry competition and removed references to specific technological advancements like telehealth.

  • 43% rewrittenLEGAL, REGULATORY AND PUBLIC POLICY RISKS

    The health benefits industry is subject to negative publicity and sentiment, which could adversely affect our business, cash flows, financial condition and results of operations

    Added customer satisfaction levels to the drivers of negative industry publicity and sentiment.

    Was: The health benefits industry is subject to negative publicity, which could adversely affect our business, cash flows, financial condition and results of operations

  • 34% rewrittenLEGAL, REGULATORY AND PUBLIC POLICY RISKS

    Our pharmacy services business and pharmacy related operations are subject to various risks and uncertainties

    Streamlined language regarding pharmacy dispensing risks and operational errors.

    Was: Our 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

  • 30% rewrittenSTRATEGIC RISKS

    The value of our intangible assets may become impaired

    Updated goodwill and intangible asset figures from $40.4 billion (34.5% of assets) in 2024 to approximately $39.5 billion (32.5% of assets) in 2025.

All 27 risk factors

Headings as the filing states them, in filing order.

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 adversely affect our business, cash flows, financial condition and results of operations84% rewritten
  2. 02A 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
  3. 03If 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
  4. 04There 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 oversight68% rewritten
  5. 05A change in our healthcare product mix may impact our profitability
  6. 06If 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
  7. 07We are dependent on the success of our relationships with third parties for various services and functions
  8. 08The 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
  9. 09We are subject to risks associated with our use of AI, which could adversely affect our business, reputation or financial results
  10. 10We 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 an adverse effect on our business, results of operations, and financial condition and financial performance

LEGAL, REGULATORY AND PUBLIC POLICY RISKS

  1. 11We 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 securities68% rewritten
  2. 12We are subject to various risks associated with our international operations70% rewritten
  3. 13operations could be adversely affected. In the future, we may acquire or operate new businesses outside of the U.S., increasing our exposure to these risksNew
  4. 14We face risks related to litigation
  5. 15There are various risks associated with providing health benefits and other healthcare diversified products and services
  6. 16Our pharmacy services business and pharmacy related operations are subject to various risks and uncertainties34% rewritten
  7. 17Indiana 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 interests
  8. 18The health benefits industry is subject to negative publicity and sentiment, which could adversely affect our business, cash flows, financial condition and results of operations43% rewritten

STRATEGIC RISKS

  1. 19We 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 affected57% rewritten
  2. 202021 Appropriations Act, which requires reporting of plan spending, the cost of plan pharmacy benefits, enrollee premiums and any manufacturer rebates received by the plan or issuer, may adversely affect our competitive position, cash flows, financial condition and results of operationsNew
  3. 21We 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
  4. 22We face intense competition to attract and retain associates. Further, managing key executive succession and retention is critical to our success
  5. 23Restrictions on our ability to obtain funds from our regulated subsidiaries could limit our ability to repurchase shares, pay dividends and meet our obligations and adversely affect our business, cash flows, financial condition and results of operations
  6. 24We 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
  7. 25A downgrade in our credit ratings could have an adverse effect on our business, cash flows, financial condition and results of operations
  8. 26The value of our intangible assets may become impaired30% rewritten
  9. 27The 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

Other Elevance Health 10-Ks

  • FY2024 10-K risk factors
    28 risks

    Elevance Health faces intense scrutiny over pricing accuracy and cost management in its healthcare benefits and pharmacy services programs.

    Filed Feb 20, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.