Elevance Health and Verizon Team Up to Bridge tech divide in healthcare
Elevance Health, Inc. (ELV) made waves with the announcement of a groundbreaking program set to provide high-quality smartphones to qualifying individuals enrolled in its Medicaid health plan. Unveiled at the Consumer Electronics Show 2024, the initiative promises unlimited texting, talking, and data service at no cost, enriching ELV’s offerings and symbolizing a step towards health equity.
This strategic move not only bridges the access gap to smartphones but also addresses the stark disparity in healthcare technology. With members gaining access to digital and virtual healthcare tools, their health outcomes are expected to improve significantly, breaking down barriers to affordability in healthcare. The initiative, set to launch in several states in 2024, aims to reach thousands of members in ELV’s affiliated Medicaid plans, aligning with the company’s focus on reducing health inequities and fortifying its commitment to serving the community.
The New Era of Health Equity
Unveiling the initiative, Elevance Health acknowledged the stark reality that 25% of U.S. adults with income below $30,000 do not own a smartphone and approximately 43% lack access to home broadband Internet service. A high cost of internet connectivity accounts for 50% of smartphone unavailability among these individuals. By eliminating an extra cost for such services, ELV’s Medicaid offerings are set to witness a transformative evolution, effectively preparing the company for a promising future.
Elevance Health’s partnership with Verizon, AT&T, T-Mobile, and Samsung, and the funding secured from the Affordable Connectivity Program underscore the company’s commitment to ensuring that all members have access to high-quality offerings, reflecting a dramatic move aimed at addressing the restrictive status quo.
Market Performance and Strategic Growth
After a recent performance report, Elevance Health’s shares demonstrated a 16% increase in the past six months, overshadowing the 4.9% rise of the medical services industry. The company’s strategic maneuvers are evidently steering it towards a successful trajectory, setting the stage for future growth.
Future Outlook and Projections
Anticipating a rebound from a prior headwind due to redeterminations, Elevance Health aims to witness an upsurge in re-enrollment in the near future. Furthermore, the company foresees a deceleration in the rate of membership attrition, bolstered by ELV’s omnichannel customer engagement approach. This enhanced focus on customer satisfaction and improved offerings is poised to bolster ELV’s Medicaid business, setting the stage for a triumphant return to growth in 2025.
Strategic Partnerships and Funding
Elevance Health’s innovative collaboration with Verizon and the Affordable Connectivity Program, along with partnerships with other leading industry stakeholders, showcases the company’s proactive approach in catalyzing change and ensuring that underserved communities receive the support they need.
Insightful Market Analysis
While Elevance Health currently holds a Zacks Rank #3 (Hold), it is worth noting that several other players in the medical sector, such as Brookdale Senior Living Inc., Atai Life Sciences N.V., and Motus GI Holdings, Inc., are thriving with a Zacks Rank #2 (Buy), indicating a widespread bullish sentiment across the industry. These industry dynamics are indicative of an exciting era, characterized by rapid growth and groundbreaking innovations.
Positive Projections and Encouraging Growth
With the Zacks Consensus Estimates signaling robust year-over-year improvements for key players like Brookdale Senior Living Inc., Atai Life Sciences N.V., and Motus GI Holdings, Inc., the medical sector is ripe for a phase of unprecedented growth. These optimistic projections hint at a future brimming with potential and offer a promising outlook for investors.
