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EVP & CFO Dawn Kussow and EVP & General Counsel Chad White identified quality of care and the Brookdale Health Plus program as key differentiators. They highlighted how Health Plus reduces hospitalizations, which resonates with families. Kussow declined to provide specific discounting metrics, stating that while there is always some level of discounting, current incentives are more targeted at specific local markets and occupancy bands rather than being applied broadly.

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EVP & CFO Dawn Kussow stated that the Office of the CEO, including herself and Chad White, is actively managing day-to-day operations to maintain momentum. Interim CEO Denise Warren affirmed that she is deeply involved in pushing operational improvements and the CEO search will not slow these efforts. Regarding promotions, Dawn Kussow advised not to 'over-index' on them, describing them as a targeted tool used cautiously to protect overall RevPOR.

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President & CEO Lucinda Baier emphasized that the focus is on disciplined profitable growth rather than a specific occupancy target, highlighting that per-unit profitability is already 8% above pre-pandemic levels. EVP & CFO Dawn Kussow confirmed no specific range was provided for adjusted free cash flow. Baier described EngagementPlus as a proprietary program designed to combat loneliness by personalizing the resident experience and connecting residents with shared interests.

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Lucinda "Cindy" Baier, President & CEO, explained that a Google algorithm change that deprioritizes third-party content significantly impacted one referral partner's organic lead generation, while the other partner had reduced its own marketing spend. Regarding discounting, she observed it was heavier than expected in Q3, possibly due to prospect uncertainty surrounding the presidential election, and expressed optimism that post-election certainty would benefit the industry.

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CEO Parth Mehrotra explained that the Medicaid growth was organic and also driven by the Arizona market entry. He reiterated that Privia avoids downside risk in Medicaid due to its volatility but believes its platform adds value for which it earns some upside. Regarding AI, he stated that Privia has long used machine learning and bots in areas like revenue cycle management. More recent investments, such as with Navina, focus on applying AI to clinical workflows at the point of care to identify suspect conditions and improve documentation through AI-driven scribing.

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CEO Parth Mehrotra asserted that this trend validates Privia's long-standing, disciplined approach to risk, strengthening its market position. He confirmed that the capitated book generated a small positive gross margin of about 2%, which was better than expected and contributed to the quarter's outperformance, underscoring their philosophy of only taking downside risk to make a profit.

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CFO Scott Blackley explained that Oscar Health has a strong capital position and expects most 2025 losses to be absorbed by excess capital at the insurance subsidiaries, though parent cash may decline. He noted a detailed risk adjustment table would be in the 10-Q. CEO Mark Bertolini stated that while the 5% margin target remains, they are not changing long-term forecasts at this moment and will re-evaluate after the current pricing season.

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CEO Mark Bertolini explained that the risk adjustment mechanism levels the playing field, making disciplined pricing more critical than the specific risk profile of incoming members from a failed competitor. On ICHRA, he reported growing momentum in the middle market and ongoing advocacy for favorable tax changes. He confirmed active discussions with large employers, reinforcing his long-term view of moving away from traditional employer-sponsored insurance.

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CEO Mark Bertolini stated that medical utilization was actually favorable and the MLR pressure came from risk adjustment settlements. CFO Scott Blackley elaborated that an updated risk report necessitated a higher risk transfer accrual. Regarding the new metric, Blackley explained the main difference between adjusted EBITDA and earnings from operations is stock compensation and D&A, not interest expense, which he expects to be consistent year-over-year. He quantified this difference at approximately $140 million for 2025 guidance.

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CEO Mark Bertolini stated the outlook is unchanged but expressed his belief that both political parties are incentivized to continue subsidies in some form. He confirmed they would revisit the EPS target favorably if subsidies are extended. He described the new HMO as a 'frictionless' product using tech to ease provider workflows and noted ICRA has 3,700 members so far, viewing it as an upside opportunity rather than a core growth driver.

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CFO Doug Garis attributed the outperformance to the stabilization of the core business, improved savings per claim, a nonrecurring revenue item from a P&C agreement, and disciplined cost control. CEO Travis Dalton added that while payer-provider friction exists, Claritev sees continued opportunity for its transparency products and has experienced strong growth in its Payment and Revenue Integrity business, which combats fraud, waste, and abuse.

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President and COO Brian Evanko explained that Cigna strategically prioritized margin over growth, reducing its exchange membership from nearly 1 million to under 400,000 since 2023, and plans further price increases for 2026. EVP and CFO Ann Dennison clarified that Q2 results included an expected 2023 RADV adjustment and a modest positive 2024 risk adjustment accrual, which helped offset utilization pressures.

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President and COO Brian Evanko clarified that in the Select segment, the mix is slightly more than half fully insured and slightly less than half ASO, with virtually 100% of ASO clients purchasing stop-loss. Chairman and CEO David Cordani commented that the MA rate environment is strained, which is pressing health plans to seek more value and affordability, creating opportunities for Evernorth to serve them.

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CFO Brian Evanko reported that the divestiture is on track to close in Q1, with all federal and nearly all state approvals secured. He stated there are only typical financial adjustments to the price, with nothing material to note. He also highlighted that the Medicare business is on solid footing, with attractive membership growth for 2025 in targeted geographies and products ahead of the handoff to HCSC.

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CEO David Cordani explained that the buyback cadence is driven purely by the timing of cash flow generation, which is not ratable, and that Q4 is a high cash flow quarter. CFO Brian Evanko addressed PPD, stating that while the gross figure was higher, the net P&L impact was not significant due to offsetting factors like client risk-sharing and MLR rebates.

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CFO Celeste Mellet confirmed the $100 million is an incremental investment focused on transformation, AI, and STARS. President and CEO James Rechtin added that while they are pulling some investments forward, there is a practical limit to how much change the organization can operationally absorb at one time.

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CEO Jim Rechtin emphasized that all three CenterWell businesses positively contribute to the insurance plan's core metrics, including Stars ratings, accurate diagnosis, and member retention. George Renaudin, President of the Insurance Segment, added that this integration leads to better health outcomes, citing reduced ER visits and improved medication adherence as examples.

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CFO Celeste Mellet clarified that these are incremental investments focused on improving operating performance in areas like Stars, clinical excellence, and membership strategies. She stated that more detail on their P&L impact would be shared as the year progresses. The question regarding the 2025 EPS floor was not directly addressed.

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George Renaudin, President of Insurance, projected 5-5.5% industry growth and detailed tools to aid retention. CFO Susan Diamond added that Medicaid redeterminations create an 80 bps headwind to industry growth. She confirmed that exited plans were unprofitable and that the company hopes attrition is concentrated in lower-performing plans across the rest of the book.

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Executive VP & CFO Steve Filton explained that the company uses a combination of approaches, including a public investment in Hippocratic AI, using outside vendors for tasks like ER coding, and developing some technology internally. He noted these efforts are focused more on efficiency than elevating coding. On tariffs, he stated there has been no material impact to date, and no significant supply cost increases are on the horizon.

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CFO Mike Marks reported that outpatient surgery cases were down slightly, driven by Medicaid and self-pay, but outpatient revenue grew a strong 8%. Inpatient surgeries were relatively flat, also impacted by a drop in Medicaid cases. He emphasized that payer mix was the primary driver of these volume trends, while revenue growth in outpatient settings remained robust.

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CEO Sam Hazen detailed a broad technology initiative focused on three areas: administrative functions, facility operations, and clinical applications. He mentioned a new Digital Transformation and Innovation Group is leading these efforts. While HCA is implementing tools for administrative and operational efficiency, he described the clinical side as the 'Holy Grail,' where they are moving cautiously to deploy data-driven tools that add real value for physicians and caregivers, citing early progress in obstetrics.

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CFO Mike Marks provided the numbers: ASC net revenue was up 5-6% while case volumes were down 1%. CEO Sam Hazen explained that HCA's ASC footprint is generally consistent with its hospital presence, with the main limitations being restrictive Certificate of Need (CON) laws in states like Georgia, Virginia, and North Carolina, rather than a strategic gap.

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CEO Sam Hazen stated that HCA's core strategy for serving Medicaid beneficiaries has not changed. He clarified that the volume decline was primarily due to the redetermination process, which will slow next year. He added that supplemental payment programs have, in some cases, made it easier to invest in services and capabilities that benefit Medicaid patients within their communities.

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EVP & CFO Drew Asher, after a brief introduction by CEO Sarah London, stated that Centene plans a net contribution of $300 million to its subsidiaries in the latter half of the year. He emphasized the company's strong capital position, highlighting a new $4 billion credit facility with zero drawn and a debt-to-cap ratio of 39%, well below the 60% covenant, indicating significant financial flexibility.

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EVP & CFO Drew Asher stated that Centene plans a net contribution of $300 million to its subsidiaries in the second half of the year. He highlighted the company's strong capital position, noting a recently doubled $4 billion credit facility with zero drawn, and a debt-to-capital ratio of 39% against a 60% covenant, providing significant financial flexibility.

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CEO Sarah London confirmed the $130 million in excess flu costs were isolated to Medicaid in Q1 and not a broader trend, based on consistent tracking definitions. EVP and CFO Andrew Asher reaffirmed the long-term earnings power, noting opportunities in Medicaid margin expansion, Medicare Advantage breakeven potential, and PDP margin growth, all bolstered by the recent $6 billion revenue guidance increase.

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CEO Sarah London explained that while CMS reported 13% enrollment growth, Centene focuses on effectuated membership, which is impacted by program integrity changes like the Failure to Report (FTR) process. She detailed that the FTR process has a longer tail, with checkpoints through April, but noted that current effectuation rates are in line with historical norms, positioning peak membership slightly above 5 million members. However, the company will wait a few more months to fully assess the net impact.

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CEO Sarah London stated that underlying utilization trends remain consistent with prior commentary, with the primary pressure coming from the rate-acuity mismatch, not new trends. She explained that the end of the redetermination administrative process does not hinder rate advocacy, as negotiations are based on the aggregate data of the now-stable, higher-acuity member population.

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CFO Mark Keim explained that states are allowing more flexibility for rate refilings this year, with extended or rolling deadlines. CEO Joseph Zubretsky identified the root cause as a market-wide deterioration in the risk pool, citing an external Wakeley analysis that shows the national Marketplace risk pool's acuity increased by 8% year-over-year, which negates the expected benefits from risk adjustment.

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CEO Joseph Zubretsky affirmed the Marketplace is highly synergistic, allowing Molina to serve members across various government-sponsored programs as their life circumstances change. CFO Mark Keim added that while the segment is volatile, Molina's strategy is to price for margin and let volume follow, ensuring it remains a smaller but profitable part of the portfolio.

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CFO Mark Keim attributed the Q4 Marketplace MCR of 83.3% to 'normal seasonality,' while CEO Joe Zubretsky highlighted the strong full-year MCR of 75.4%, which allowed for reinvestment in growth. For Medicare, Keim cited industry-wide utilization trends and a one-time downward adjustment to risk adjustment revenue. Zubretsky added that the Bright business would be slightly below breakeven in 2025, impacting margins, but affirmed confidence in the long-term accretion and overall Medicare growth strategy.

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President and CEO Joe Zubretsky explained that Molina will reinvest the excess Marketplace margin into its 2025 bids to drive growth, a strategy consistent with the prior year. CFO Mark Keim added that the company is tracking below the rebate threshold and will prioritize growth over paying rebates. Regarding Medicaid, Zubretsky noted that cost trend is running at 6% versus the expected 3%, attributing it equally to redetermination acuity shifts and higher utilization among continuing members in LTSS, pharmacy (including GLP-1s), and behavioral health.

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Chairman & CEO Saum Sutaria confirmed that Tenet's industry-leading revenue cycle capabilities, enhanced by technology and advanced analytics, have improved results. EVP & CFO Sun Park attributed the strong performance to high acuity, favorable case and payer mix, and robust growth in key service lines like orthopedics, which supported the guidance raise. She also noted M&A activity is expected to exceed the $250 million baseline.

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Saumya Sutaria, Chairman and CEO, affirmed that the company always operates with a mindset of margin expansion potential. He listed multiple drivers: hardwired operating discipline, data-driven controls, improved payer mix from exchanges and portfolio transformation, and future operating leverage from a better labor cost structure, supply standardization, and improved asset utilization. He reiterated that this potential is why the company's priority remains on growth.

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Dr. Saum Sutaria, Chairman and CEO, responded that the competitive landscape is unchanged and USPI's ability to scale demonstrates its strength. He positioned de novo development as a key part of their value strategy, creating lower-cost care settings. He also confirmed that de novo projects yield higher long-term returns on capital than acquisitions.

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EVP and CFO Sun Park clarified that USPI's Q4 EBITDA guidance implies a seasonal upswing and provided the expected Q4 tax payment figure. Chairman and CEO Dr. Saum Sutaria stated that the adoption of the 2-midnight rule by Medicare Advantage plans is still "underway" and has contributed 50-100 basis points to admissions growth. He acknowledged that while administrative disputes with payers have risen, Tenet has mitigated the financial impact through its Conifer division.

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CEO Andrew Witty orchestrated a multi-part response. Timothy Noel of UHC M&R noted higher preventative care in fee-for-service MA leads to more follow-on specialist visits. Dr. Amar Desai, CEO of Optum Health, attributed Optum's pressure to the profile of new patients from plan exits and the complexities of the V28 risk model transition. Heather Cianfrocco, President of Optum, and Witty both reaffirmed their strong belief in the value-based care model, framing the current issues as temporary "second order derivative effects" of significant government funding cuts.

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Executive John Rex explained the consumer count drop was a strategic move to de-emphasize certain narrow offerings like standalone urgent care. Executive Dr. Amar Desai added that the margin decline was due to planned actions, including restructuring legacy contracts, membership mix changes, and investments in clinical quality and new member onboarding. He affirmed confidence in reaching long-term margin targets for 2025.

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CEO Andrew Witty positioned MA as a very important but single component of a diversified enterprise with five growth pillars. Timothy Noel, CEO of Medicare & Retirement, emphasized that their strategy remains consistent despite the dynamic environment, focusing on a long-term view, rational pricing, benefit stability for consumers, and creating value through partnerships with value-based care providers and new technologies like AI.

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CFO Tom Cowhey clarified that PDRs are calculated on a variable cost basis and their absence does not guarantee profitability after allocating substantial fixed costs. Regarding distribution, he stated that approximately 85% of sales come from external broker channels, where CVS has long-established relationships. He noted that early AEP sales are generally tracking in line with expectations.

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