Elevance Health ($ELV) faces CMS sanctions suspending Medicare Advantage enrollment effective March 31, 2026.

Regulatory Sanctions Disclosure

Event: On February 27, 2026, Elevance Health was notified by the Centers for Medicare & Medicaid Services (CMS) of its intent to impose intermediate sanctions.

Details:

• Sanctions: Suspension of enrollment of Medicare beneficiaries into Medicare Advantage-Prescription Drug (MA-PD) plans and suspension of certain communication activities.
• Effective Date: March 31, 2026 (unless issues are satisfactorily addressed).
• Reasoning: Alleged noncompliance with Medicare Advantage risk adjustment data submission requirements for dates of service prior to April 3, 2023.
• Company Response: The Company states it revised its practices in April 2023 following regulatory guidance and is working cooperatively with CMS to address concerns.

Impact: This is a significant negative development. While current members are not affected, the inability to enroll new members in a core growth segment (Medicare Advantage) could materially impact future earnings and membership growth if the suspension is enacted and prolonged.