Elevance Health lowers its 2025 profit outlook due to higher ACA and Medicaid costs driven by sicker patients and increased care utilization, reflecting an industry-wide trend. Analysts anticipate persistent insurer losses before improvement in 2026.

The U.S. health insurance market is projected to grow to $2.13 trillion by 2030, driven by rising healthcare costs, chronic diseases, and digital adoption. Employer and individual plans evolve amid regulatory and technological shifts.

Elevance Health reports 15% revenue growth in Q1 2025 driven by Medicare Advantage expansion, premium increases, and CarelonRx portfolio growth, highlighting ongoing healthcare market evolution.