What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-06 compared with 2025-02-20 · 427 added, 627 removed, 1699 unchanged (38% of the section changed)

9 unchanged sentences

Consolidated Statements of Cash Flows 74

Consolidated Statements of Shareholders’ Equity 74

Consolidated Statements of Total Equity

Notes to Consolidated Financial Statements 76

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We have audited the accompanying consolidated balance sheets of Elevance Health, Inc.

(the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, cash flows and shareholders’ equity for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(c) (collectively referred to as the “consolidated financial statements”).

(the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, cash flows and total equity for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(c) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S.

129 unchanged sentences

Net loss (gain) attributable to noncontrolling interests

Other comprehensive loss attributable to noncontrolling interests 6 6 11

Other comprehensive (income) loss attributable to noncontrolling interests

Total shareholders’ comprehensive income $ 6,358 $ 6,146 $ 7,164

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Equity in net (earnings) losses of other invested assets

( 398 ) ( 1 ) 33

Depreciation and amortization 1,546 1,393 1,745

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Financing activities

Proceeds from long-term borrowings 7,710 2,574 3,071

Proceeds from long-term borrowings, net issuance costs

2,991 7,710 2,574

Repayments of long-term borrowings ( 2,147 ) ( 1,650 ) ( 1,909 )

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Elevance Health, Inc.

Consolidated Statements of Shareholders’ Equity

Consolidated Statements of Total Equity

Total Shareholders’ Equity

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Comprehensive

(Loss) Income Noncontrolling Interests Total

Income (Loss)

Noncontrolling Interests Total

(In millions) Number

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Net income (loss) — — — 5,987 — 4 5,991

Other comprehensive loss — — — — ( 2,293 ) ( 11 ) ( 2,304 )

Noncontrolling interests adjustment

Other comprehensive income (loss)

— — — — 1,177 ( 6 ) 1,171

Noncontrolling interests and other adjustments

— — — — — 14 14

Repurchase and retirement of common stock ( 5.8 ) — ( 217 ) ( 2,481 ) — — ( 2,698 )

5 unchanged sentences

Other comprehensive income (loss) — — — — 166 ( 6 ) 160

Noncontrolling interests adjustment

Noncontrolling interests and other adjustments

— — — — — 27 27

2 unchanged sentences

Issuance of common stock under employee stock plans, net of related tax benefits 1.1 — 305 — — — 305

Convertible debenture repurchases and conversions — — ( 341 ) — — — ( 341 )

December 31, 2024 227.5 2 8,911 33,549 ( 1,147 ) 111 41,426

2 unchanged sentences

Other comprehensive income (loss) — — — — 696 4 700

Noncontrolling interests adjustment

Noncontrolling interests and other adjustments

— — — 58 — 30 88

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We offer a broad spectrum of network-based managed care risk-based plans to Individual, Employer Group, Medicaid and Medicare markets.

In addition, we provide a broad array of managed care services to fee-based customers, including claims processing, stop loss insurance, provider network access, medical management, care management, wellness programs, actuarial services and other administrative services.

In addition, we provide a broad array of managed care services to fee-based customers, including claims processing, stop loss insurance, care provider network access, medical management, care management, wellness programs, actuarial services and other administrative services.

Across these markets, we generate revenue through risk-based premiums, administrative fees from self-funded employers and pharmacy and health service fees through our Carelon businesses.

We provide services to the federal government in connection with our Federal Health Products & Services business, which administers the Federal Employee Program ® (“FEP ® ”).

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We are licensed to conduct insurance operations in all 50 states, the District of Columbia and Puerto Rico through our subsidiaries.

We have organized our brand portfolio into the following core go-to-market brands:

• Anthem Blue Cross/Anthem Blue Cross and Blue Shield — represents our Anthem-branded and affiliated Blue Cross and/or Blue Shield licensed plans;

• Wellpoint — unites select non-BCBSA licensed Medicare, Medicaid and commercial plans under the Wellpoint name;

• Carelon — this brand brings together our healthcare related services and capabilities, including our CarelonRx and Carelon Services businesses, under a single brand name.

Our portfolio consists of the following core go-to-market brands:

• Anthem Blue Cross/Anthem Blue Cross and Blue Shield — represents our Anthem-branded and affiliated Blue Cross and/or Blue Shield licensed Medicare, Medicaid, and commercial Health Benefit plans;

• Wellpoint — represents our Wellpoint branded Medicare, Medicaid and commercial Health Benefit plans and other non-BCBSA brands;

• Carelon — represents our healthcare related services and capabilities, including our CarelonRx and Carelon Services businesses.

We report our results of operations in the following four reportable segments:

1 unchanged sentence

For additional discussion, see Note 20, “Segment Information.”

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Basis of Presentation and Significant Accounting Policies

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All significant intercompany accounts and transactions have been eliminated in consolidation.

Our consolidated financial

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

statements include the accounts of Elevance Health, Inc.

Our consolidated financial statements include the accounts of Elevance Health, Inc.

and subsidiaries that we control, including variable interest entities for which we are the primary beneficiary.

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The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income.

Reclassifications:

Certain prior year amounts have been reclassified to conform to the current year presentation.

Use of Estimates:

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Cash and cash equivalents includes available cash and all highly liquid investments with maturities of three months or less when purchased.

We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits, and we have cash and cash equivalents on deposit to meet certain regulatory requirements.

These amounts totaled $ 348 and $ 409 at December 31, 2025 and 2024, respectively, and are included in the cash and cash equivalents line on our consolidated balance sheets.

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For asset-backed securities included in fixed maturity securities, we recognize income using an effective yield based on anticipated prepayments and the estimated economic life of the securities.

When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments.

The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities.

Such adjustments are reported within net investment income.

When estimates of prepayments change, the

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

effective yield is recalculated to reflect actual payments to date and anticipated future payments.

The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities.

Such adjustments are reported within net investment income.

The changes in fair value of our marketable equity securities are recognized in our results of operations within net gains and losses on financial instruments.

Certain marketable equity securities are held to satisfy contractual obligations and are reported under the caption “Other invested assets” in our consolidated balance sheets.

Mortgage loans on real estate are classified as held for investment and are reported at their amortized cost basis net of loss allowance under the caption “Other invested assets” in our consolidated balance sheets.

Amortized cost is the amount at which the loan is originated, adjusted for accrued interest, amortization of premium, discount and net deferred fees or costs, collection of cash and write-offs.

We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management.

The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets.

We have investments in limited partnerships (“LPs”) and companies in which our ownership interest may enable us to influence the operating or financial decisions of the investee company, including unconsolidated variable interest entities.

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We consolidate investee companies in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity.

Amortized cost is the amount at which the loan is originated, adjusted for accrued interest, amortization of premium, discount and net deferred fees or costs, collection of cash and write-offs.

We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management.

The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets.

Investment income is recorded when earned.

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We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral.

Under Financial Accounting Standards Board (“FASB”) guidance related to accounting for transfers and servicing of financial assets and extinguishments of liabilities, we recognize the collateral as an asset, which is reported in Other current assets on our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported in Other current liabilities.

The securities on loan are reported in the applicable investment category on our consolidated balance sheets.

Under Financial Accounting Standards Board (“FASB”) guidance related to accounting for transfers and servicing of financial assets and extinguishments of liabilities, we recognize the collateral as an asset, which is reported in “Other current assets” on our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported in “Other current liabilities.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets.

Unrealized gains or losses on securities lending collateral are included in accumulated other comprehensive income as a separate component of shareholders’ equity.

8 unchanged sentences

Premium receivables are reported net of an allowance for doubtful accounts of $ 167 and $ 183 at December 31, 2025 and 2024, respectively.

Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 115 and $ 87 at December 31, 2024 and 2023, respectively.

Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades that have not yet settled, accrued investment income and other miscellaneous amounts due

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 145 and $ 115 at December 31, 2025 and 2024, respectively.

These receivables are reported net of an allowance for doubtful accounts of $ 1,509 and $ 1,385 at December 31, 2025 and 2024, respectively.

During the year ended December 31, 2025, we realized a $ 264 settlement with a value-based care provider, which allowed us to release $ 129 from the allowance for doubtful accounts.

Of the settlement amount, $ 154 pertains to services rendered in 2024, with the remaining $ 110 attributable to 2025.

Income Taxes:

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We do not believe the Corporate AMT will have a material impact on our consolidated financial position, results of operations, cash flows or related disclosures.

Additionally, the Inflation Reduction Act of 2022 imposes an excise tax on the fair market value of net stock repurchases made after December 31, 2022.

Also, the Inflation Reduction Act of 2022 imposes an excise tax on the fair market value of net stock repurchases made after December 31, 2022.

These are included as a charge to retained earnings as a component of the repurchase and retirement of common stock.

Additionally, the One Big Beautiful Bill Act (“OBBBA”) signed into law on July 4, 2025, included various tax policy changes.

We do not believe the OBBBA will have a material impact on our consolidated financial position.

We account for income tax contingencies in accordance with FASB guidance that contains a model to address uncertainty in tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold, which all income tax positions must achieve before being recognized in the financial statements.

12 unchanged sentences

Other intangible assets with indefinite lives, such as trademarks, are tested for impairment separately.

We complete our annual impairment tests of existing goodwill and other intangible assets with indefinite lives during the fourth quarter of each year.

We complete our

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

annual impairment tests of existing goodwill and other intangible assets with indefinite lives during the fourth quarter of each year.

Our impairment tests require us to make assumptions and judgments regarding the estimated fair value of our reporting units, including goodwill and other intangible assets with indefinite lives.

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Estimated fair values developed based on our assumptions and judgments might be different if other reasonable assumptions and estimates were to be used.

Qualitative analysis involves assessing situations and developments that could affect key

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

drivers used to evaluate whether the fair value of our goodwill and indefinite-lived intangible assets is impaired.

Qualitative analysis involves assessing situations and developments that could affect key drivers used to evaluate whether the fair value of our goodwill and indefinite-lived intangible assets is impaired.

Our procedures include assessing our financial performance, macroeconomic conditions, industry and market considerations, various asset specific factors, and entity specific events.

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If certain correlation, hedge effectiveness and risk reduction criteria are met, a derivative may be specifically designated as a hedge of exposure to changes in fair value or cash flow.

The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the nature of any hedge designation thereon.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the nature of any hedge designation thereon.

Amounts excluded from the assessment of hedge effectiveness, if any, are reported in results of operations immediately.

2 unchanged sentences

From time to time, we may also purchase derivatives to hedge, on an economic basis, our exposure to foreign currency exchange fluctuations associated with the operations of certain of our subsidiaries.

We generally use futures or forward

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

contracts for these transactions.

We generally use futures or forward contracts for these transactions.

We generally do not designate these contracts as hedges and, accordingly, the changes in fair value of these derivatives are recognized in results of operations immediately.

10 unchanged sentences

We recognize the funded status of pension and other postretirement benefit plans on the consolidated balance sheets based on fiscal year-end measurements of plan assets and benefit obligations.

Prepaid pension benefits represent prepaid costs related to defined benefit pension plans and are reported with other noncurrent assets.

Prepaid pension benefits represent prepaid costs related to tax-qualified defined benefit pension plans and are reported with “Other noncurrent assets”.

Prepaid postretirement benefits represent prepaid costs related to retiree medical, life, vision and dental benefits and are reported with “Other noncurrent assets”.

We determine the expected return on plan assets using the calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over three years.

Benefit obligations related to unqualified defined benefit pension plans are recorded with “Other noncurrent liabilities”.

We determine the expected return on plan assets using the calculated value of plan assets, which recognize changes in the fair value of plan assets in a systematic manner over three years.

We apply a corridor approach to amortize unrecognized actuarial gains or losses.

Under this approach, only accumulated net actuarial gains or losses in excess of 10% of the greater of the projected benefit obligation or the fair value of plan assets are amortized over the average remaining service or lifetime of the workforce as a component of net periodic benefit cost.

Under this approach, only accumulated net actuarial gains or losses in excess of 10% of the greater of the projected benefit obligation or the fair value of plan assets are amortized over the average remaining service or lifetime of the plan participants as a component of net periodic benefit cost.

The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year based on our most recent measurement date.

1 unchanged sentence

Under the spot rate approach, individual spot rates from a full yield curve of published rates are used to discount each plan’s cash flows to determine the plan’s obligations.

The assumed healthcare cost trend rates used to measure the expected cost of other postretirement benefits are based on an initial assumed healthcare cost trend rate declining to an ultimate healthcare cost trend rate over a select number of years.

Medical Claims Payable:

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Our reserving practice for claim liabilities is to consistently recognize the appropriate amount of reserve within a level of confidence required by Actuarial Standards of Practice.

We determine the amount of the liability for incurred but not yet reported or processed claims by following a detailed actuarial process that uses both historical claim payment patterns as well as emerging medical cost trends to project our best estimate of claim liabilities.

We determine the amount of the liability for incurred but not yet reported or processed claims by following a detailed actuarial process that uses both historical claim

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

payment patterns as well as emerging medical cost trends to project our best estimate of claim liabilities.

Under this process, historical paid claims data is formatted into “claim triangles,” which compare claim incurred dates to the dates of claim payments.

2 unchanged sentences

Actuarial estimates of incurred but not paid claim liabilities are then determined by subtracting the actual paid claims from the estimate of the ultimate incurred claims.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

For the most recent incurred months (typically the most recent two months), the percentage of claims paid for claims incurred in those months is generally low.

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Once established, reserves for premium deficiencies are released commensurate with actual claims experience over the remaining life of the contract.

No reserves for premium deficiencies were established at December 31, 2024 or 2023.

Benefit expense includes incurred medical claims as well as quality improvement expenses for our risk-based members.

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If we do not meet or exceed the minimum MLR thresholds specified by the ACA, we are required to pay rebates to certain customers.

Minimum MLR rebates are calculated by subsidiary, state and applicable line of business in accordance with regulations issued by the US Department of Health and Human Services (“HHS”).

Minimum MLR rebates are calculated by subsidiary, state and applicable line of business in accordance with regulations issued by the U.S.

Department of Health and Human Services (“HHS”).

Such calculations are made using estimated calendar year medical loss expense and premiums, as defined by HHS.

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We estimate our payable based on the risk of our customers compared to the risk of other customers in the same state and market, considering data obtained from industry studies and HHS.

Payables are recorded as adjustments to premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured.

Payables are recorded as adjustments to

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured.

Final revenue adjustments are determined by HHS in the year following the policy year.

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Future policy benefits are continually monitored and reviewed, and when reserves are adjusted, differences are reflected in benefit expense.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

We believe that our liabilities for future policy benefits, along with future premiums received, are adequate to satisfy our ultimate benefit liability;

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Product revenue for pharmacy services is recognized using the gross method at the negotiated contract price when CarelonRx has concluded that it is the principal, and it controls the services before prescription drugs are transferred to the customer.

CarelonRx determined it is the principal due to its contractual rights to design and develop a listing of prescription drugs offered to the customer (formulary management);

CarelonRx determines whether it is the principal due to its contractual rights to design and develop a listing of prescription drugs offered to the customer (formulary management);

its control over establishing the pharmacy network available to the customer to have its prescription fulfilled (network management);

and its discretion over establishing the pricing for prescription drugs.

Overall, control over these activities indicate CarelonRx is primarily responsible for fulfilling the promise to provide pharmacy services.

CarelonRx recognizes revenue when control of the prescription drugs is transferred to customers, in an amount it expects to be entitled to in exchange for the products or services provided.

For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheets at December 31, 2024 and 2023.

Revenue recognized in 2024 and 2023 from performance obligations related to prior years, such as due to changes in transaction price, was not material.

For contracts that

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

have an original expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material.

control over these activities indicate CarelonRx is primarily responsible for fulfilling the promise to provide pharmacy services.

CarelonRx recognizes revenue when control of the prescription drugs is transferred to customers, in an amount it expects to be entitled to in exchange for the products or services provided.

For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheets at December 31, 2025 or 2024.

Revenue recognized in 2025 and 2024 from performance obligations related to prior years, such as due to changes in transaction price, was not material.

For contracts that have an original expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material.

Cost of Products Sold:

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We also do not recognize a lease liability or ROU asset for our office space leases whose lease terms, at commencement, are twelve months or less and that do not include a purchase option or option to extend that we are reasonably certain to exercise.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

We assess our ROU assets for impairment when there are indicators of impairment and compare the carrying amount of the ROU asset to its estimated undiscounted future cash flows.

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See Note 18, “Leases,” for additional information about the ROU asset impairment and abandonment charges.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Shareholders ’ Earnings per Share:

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The amendments in ASU 2023-07 are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 is effective for our fiscal year beginning after December 15, 2023, and interim periods within our fiscal year beginning after December 15, 2024.

The amendments are to be applied retrospectively to all prior periods presented in the financial statements, and upon transition, the significant segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption.

ASU 2023-07 became effective for our fiscal year beginning after December 15, 2023, and for interim periods within our fiscal year beginning after December 15, 2024.

We adopted these amendments on January 1, 2024, using the retrospective approach.

Accordingly, the amendments were applied to all prior periods presented in the financial statements, and significant segment expense categories and amounts for prior periods are based on the categories identified and disclosed in the period of adoption.

The adoption of ASU 2023-07 did not have an impact on our results of operations or our consolidated cash flows.

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While the adoption did not have an overall material impact, our prior period financial statements presented in this Annual Report on Form 10-K have been restated to reflect the impacts of our adoption as required by the new standard.

An adjustment of $( 131 ) was made to shareholders’ net income for the year ended December 31, 2022, which include an adjustment to benefit expense of $ 155 .

In addition, the following balance sheet adjustments were made for the year ended December 31, 2022:

$( 17 ) to total assets;

$ 47 to total liabilities;

$ 13 to accumulated other comprehensive loss;

and $( 64 ) to shareholders’ equity and total equity.

A balance sheet adjustment of ($ 64 ) was made to shareholders’ equity and total equity for the year ended December 31, 2022.

In December 2023, the FASB issued Accounting Standards Update No.

2023-09, Income Taxes (Topic 740) (“ASU 2023-09”).

The amendments in ASU 2023-09 are intended to improve income tax disclosures, primarily related to the rate reconciliation and income taxes paid information.

ASU 2023-09 became effective for our fiscal year beginning after December 15, 2024.

We adopted these amendments on January 1, 2025 and applied the amendments on a prospective basis.

The adoption of ASU 2023-09 did not have a material impact on our consolidated financial statements.

Our Income Taxes footnote disclosure was updated to reflect adoption of the standard.

In August 2023, the FASB issued Accounting Standards Update No.

2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60):

Recognition and Initial Measurement (“ASU 2023-05”).

ASU 2023-05 clarifies existing guidance to reduce diversity in practice and requires a joint venture to recognize and initially measure its assets and liabilities using a new basis of accounting, at fair value, upon formation.

We adopted ASU 2023-05 as of January 1, 2025 and applied

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

the amendments on a prospective basis.

The adoption of ASU 2023-05 did not have an impact on our consolidated financial statements and disclosures.

Recent Accounting Guidance Not Yet Adopted:

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Public companies must also provide a qualitative description of remaining expense amounts not separately disclosed, as well as the definition and total amount of selling expenses.

ASU 2024-03 is effective for our fiscal year beginning after December 15, 2026, and interim periods within our fiscal year beginning after December 15, 2027.

ASU 2024-03 is effective for our fiscal year beginning after December 15, 2026, and for interim periods within our fiscal year beginning after December 15, 2027.

The amendments are to be applied either prospectively to financial statements issued for reporting periods after the effective date of the update, or retrospectively to all prior periods presented in the financial statements.

We are currently evaluating the effects the adoption of ASU 2024-03 will have on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued Accounting Standards Update No.

2023-09, Income Taxes (Topic 740) (“ASU 2023-09”).

The amendments in ASU 2023-09 are intended to improve income tax disclosures, primarily related to the rate reconciliation and income taxes paid information.

ASU 2023-09 is effective for our fiscal year beginning after December 15, 2024.

The amendments are to be applied on a prospective basis, although retrospective adoption is permitted.

We do not believe the adoption of ASU 2023-09 will have a material impact on our consolidated financial statements or disclosures.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

In August 2023, the FASB issued Accounting Standards Update No.

2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60):

Recognition and Initial Measurement (“ASU 2023-05”).

ASU 2023-05 clarifies existing guidance to reduce diversity in practice and is requiring a joint venture to recognize and initially measure its assets and liabilities using a new basis of accounting, at fair value, upon formation.

These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.

We do not believe the adoption of ASU 2023-05 will have a material impact on our consolidated financial statements and disclosures.

In July 2025, the FASB issued Accounting Standards Update No.

2025-05, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”).

This standard introduces a practical expedient for all entities when estimating expected credit losses on current accounts receivable and contract assets arising from transactions under Accounting Standards Codification Topic (“ASC”) 606.

Under the practical expedient, entities may assume that conditions at the balance sheet date remain unchanged over the life of the asset, reducing the need to prepare complex macroeconomic forecasts for short-term balances.

ASU 2025-05 is effective for our fiscal years beginning after December 15, 2025, and interim periods within such fiscal years, with prospective application required.

Early adoption is permitted.

We have assessed the impact of adopting ASU 2025-05 and is not expected to have a material impact on our consolidated financial statements and disclosures.

In September 2025, the FASB issued Accounting Standards Update No.

2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”).

This standard modernizes the accounting for internal-use software by removing references to prescriptive development stages and instead requiring capitalization of costs once (1) management has authorized and committed to funding the software project, and (2) it is probable the project will be completed and placed in service.

Entities must evaluate whether there is “significant development uncertainty,” such as unresolved novel functionality or substantially revised performance requirements, before meeting this capitalization threshold.

ASU 2025-06 is effective for our fiscal years beginning after December 15, 2027, and interim periods within such fiscal years, with early adoption permitted.

Entities may adopt the amendments prospectively, retrospectively, or under a modified transition approach.

We are currently evaluating the impact of ASU 2025-06 on our consolidated financial statements and related disclosures.

There were no other new accounting pronouncements that were issued or became effective during the year ended December 31, 2025 that had, or are expected to have, a material impact on our financial position, results of operations, cash flows or financial statement disclosures.

Business Acquisitions and Divestitures

Business Acquisitions

Completed Acquisitions

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The majority of the goodwill is not deductible for income tax purposes.

As of December 31, 2024, the initial accounting for the acquisition has not been finalized.

As of December 31, 2025, the initial accounting for the acquisition was finalized.

The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations.

On December 10, 2024, we completed our acquisition of RSV QOZB LTSS, Inc.

and certain affiliated entities (“CareBridge”), a value-based healthcare company that manages home and community-based services for Medicaid and dual-eligible members receiving long-term services and support.

and certain affiliated entities (“CareBridge”), a value-based healthcare company that manages home and community-based services for Medicaid and dual-

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

eligible members receiving long-term services and support.

This acquisition aligns with Carelon Services’ care at home strategy, and our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve.

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The majority of the goodwill is not deductible for income tax purposes.

As of December 31, 2024, the initial accounting for the acquisition has not been finalized.

As of December 31, 2025, the initial accounting for the acquisition was finalized.

The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations.

On March 11, 2024, we completed our acquisition of Paragon Healthcare, Inc.

Paragon, which operates as part of CarelonRx, provides infusion services and injectable therapies through its omnichannel model of ambulatory infusion centers, home infusion pharmacies, and other specialty pharmacy services.

This acquisition aligns with our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve.

As of December 31, 2024, the purchase price was allocated to the tangible and intangible net assets acquired based on management's initial estimates of their fair values, of which $ 411 has been allocated to finite-lived intangible assets and $ 747 to goodwill.

The majority of the goodwill is not deductible for income tax purposes.

As of December 31, 2024, the initial accounting for the acquisition has not been finalized.

The proforma effects of this acquisition for prior periods were not

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

material to our consolidated results of operations.

During the year ended December 31, 2025, in total, we completed business combinations for total cash consideration of approximately $ 414 .

The purchase prices for all business combinations were preliminarily allocated to the tangible and intangible net assets acquired based on management's initial estimates of their fair values.

Tangible net assets acquired were $( 236 ), and intangible assets were $ 5,364 , of which $ 1,872 was allocated to finite-lived intangible assets, $ 426 to indefinite-lived intangible assets, and $ 3,066 to goodwill.

Of these amounts, $ 2,641 was allocated to our Carelon Services reportable segment, $ 1,594 was allocated to our CarelonRx reportable segment and $ 1,129 to our Health Benefits reportable segment.

Tangible net assets acquired were $ 193 , and intangible assets, for which 100 % were allocated to our Health Benefits reportable segment, were $ 221 , of which $ 100 was allocated to finite-lived intangible assets and $ 121 to goodwill.

The majority of goodwill is not deductible for income tax purposes.

As of December 31, 2024, the initial accounting for the acquisitions had not been finalized.

As of December 31, 2025, the initial accounting for these acquisitions had not been finalized.

Any subsequent adjustments made to the assets acquired or liabilities assumed during the measurement period may result from a purchase price adjustment, or will be recorded as an adjustment to goodwill and/or intangible assets acquired.

The proforma effects of these acquisitions for prior periods were not material to our consolidated results of operations.

The unaudited pro-forma effects of these acquisitions for prior periods were not material to our consolidated results of operations.

During the year ended December 31, 2024, in total, we completed business combinations for total cash consideration of approximately $ 5,128 .

These acquisitions included BioPlus Parent, LLC and its subsidiaries (“BioPlus”), which were acquired in February 2023.

The purchase prices for all business combinations were preliminarily allocated to the tangible and intangible net assets acquired based on management's initial estimates of their fair values, of which $ 820 was allocated to finite-lived intangible assets and $ 923 to goodwill.

Of these amounts, $ 1,723 was allocated to our CarelonRx reportable segment and $ 20 to our Carelon Services reportable segment.

The purchase prices for all business combinations were preliminarily allocated to the tangible and intangible net assets acquired based on management's initial estimates of their fair values.

Tangible net assets acquired were $( 236 ) and intangible assets were $ 5,364 of which $ 1,872 was allocated to finite-lived intangible assets, $ 426 to indefinite-lived intangible assets, and $ 3,066 to goodwill.

Of these amounts, $ 2,641 was allocated to our Carelon Services reportable segment, $ 1,594 was allocated to our CarelonRx reportable segment, and $ 1,129 to our Health Benefits reportable segment.

The majority of goodwill is not deductible for income tax purposes.

As of December 31, 2025, the accounting for the acquisitions was finalized.

The proforma effects of these acquisitions for prior periods were not material to our consolidated results of operations.

The unaudited pro-forma effects of these acquisitions for prior periods were not material to our consolidated results of operations.

Acquired tangible assets (liabilities) at the acquisition date were:

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Other long-term liabilities ( 2 ) ( 242 )

Deferred tax liabilities ( 475 ) ( 183 )

Deferred tax assets (liabilities)

Total net tangible assets (liabilities)

$ 193 $ ( 236 )

The preliminary purchase price allocations for the various 2024 business combinations are subject to adjustment as valuation analyses, primarily related to intangible assets and contingent and tax liabilities, are finalized.

The preliminary purchase price allocations for the various 2025 business combinations are subject to adjustment as valuation analyses, primarily related to contingent and tax liabilities, are finalized.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Acquisition date fair values and weighted-average useful lives assigned to intangible assets include:

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Customer-related $ 100 15 years $ 1,621 20 years

Provider and hospital relationships 70 10 years — 0

Provider and hospital relationships — 10 years 70 10 years

Other — 8 years 181 8 years

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The results of operations and financial condition of acquired entities have been included in our consolidated results and the results of the corresponding operating segment as of the date of acquisition.

Through December 31, 2024, the impact of

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

the acquired entities on revenue and net earnings was not material.

Unaudited pro-forma revenues for the years ended December 31, 2024, 2023 and 2022, as if the acquisitions had occurred on January 1, 2022, were immaterial.

On April 1, 2024, we completed the sale of our life and disability businesses to StanCorp Financial Group, Inc.

(“The Standard”), a provider of financial protection products and services for employers and individuals, which resulted in a gain on sale of business of $ 201 in the year ended December 31, 2024.

Upon closing, we and The Standard entered into a product distribution partnership.

The related net assets held for sale for the life and disability businesses divested as of December 31, 2023 and results of operations for the year ended December 31, 2024 were not material.

Through December 31, 2025, the impact of the acquired entities on revenue and net earnings was not material.

Unaudited pro-forma revenues for the years ended December 31, 2025, 2024 and 2023, as if the acquisitions had occurred at the beginning of the year, were immaterial.

Business Optimization Initiatives

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The 2023-2024 Business Efficiency Program was finalized as of December 31, 2024.

Cash outlays associated with this program, which primarily relate to the personnel-related costs, are expected to be paid through 2025.

All material cash outlays associated with this program were paid as of December 31, 2025.

In 2025, we released $ 55 from our severance accrual.

Payments related to employee termination costs for the 2023-2024 Business Efficiency Program during the year ended December 31, 2025 were $ 130

In 2024, we incurred $ 268 of costs towards the 2023-2024 Business Efficiency Program.

This included primarily $ 72 of pre-tax charges for information technology asset write-offs, $ 165 of pre-tax personnel-related charges for the reduction and/or relocation of staff, which includes severance and related costs primarily determined under our existing severance plans, and $ 31 of pre-tax charges from asset impairments related to the closure or partial closure of offices, including operating lease-related ROU assets and other property and equipment.

Payments related to employee termination costs for the 2023-2024 Business Efficiency Program during the year ended December 31, 2024 were $ 132 .

In 2023, we incurred $ 752 of expense, which included $ 468 of pre-tax charges for information technology assets and contract write-offs related to projects that have been de-prioritized and stopped, $ 230 of pre-tax personnel-related charges for the reduction and/or relocation of workforce, which includes severance and related costs primarily determined under our existing severance plans, and $ 54 of pre-tax charges from asset impairments related to the closure or partial closure of data centers and offices, including operating lease-related ROU assets and other property and equipment.

These charges in both years were recognized in operating expense in the Corporate & Other segment;

Payments related to employee termination costs during the year ended December 31, 2023 were $ 40 .

These charges in each of these years were recognized in “Operating expense” in the Corporate & Other segment;

see Note 20, “Segment Information.”

During the year ended December 31, 2024, there were $ 165 in charges related to employee termination costs under the 2023-2024 Business Efficiency Program, and payments were $ 132 .

During the year ended December 31, 2023, there were $ 230 in charges related to employee termination costs under the 2023-2024 Business Efficiency Program, and payments were $ 39 .

Elevance Health, Inc.

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Unrealized losses on our securities shown in the table above have not been recognized into income because, as of December 31, 2025, we do not intend to sell these investments, and it is likely that we will not be required to sell these investments prior to their anticipated recovery.

The declines in fair values are largely due to increasing interest rates driven by the higher rate of inflation and other market conditions.

The declines in fair values are largely due to elevated interest rates driven by the higher rate of inflation and other market conditions.

Allowances for credit losses have been recorded in the amounts of $ 21 and $ 6 at December 31, 2025 and 2024, respectively, for declines in fair value due to unfavorable changes in the credit quality characteristics that impact our assessment of collectability of principal and interest.

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(“Mosaic Health”) and our 40 % minority interest ownership of Project Freedom Holdings, LLC, which is the ultimate parent of LIBERTY Dental Plan Corporation (“Liberty Dental”).

On August 6, 2024, we made an equity investment in Mosaic Health of $ 2,580 , consisting of cash and the net put option discussed in Note 6 “Derivative Financial Instruments”, Mosaic Health is a joint venture with Clayton, Dubilier & Rice (“CD&R”) that is designed to accelerate innovation in care delivery across multiple regions in the United States by bringing together certain care delivery and enablement assets of Carelon Management Services, LLC (“CMSI Assets”), a Carelon Health business, and two CD&R portfolio businesses, apree health and Millennium Physician Group.

On August 6, 2024, we made an equity investment of $ 2,580 , consisting of cash and the net put option discussed in Note 6 “Derivative Financial Instruments”, in Mosaic Health.

Mosaic Health is a joint venture with Clayton, Dubilier & Rice (“CD&R”) that is designed to accelerate innovation in care delivery across multiple regions in the United States by bringing together certain care delivery and enablement assets of Carelon Management Services, LLC (“CMSI Assets”), a Carelon Health business, and two CD&R portfolio businesses, apree health and Millennium Physician Group.

The investment is accounted for as an equity method investment.

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In connection with our equity method investment in Mosaic Health, we entered into a financing agreement to provide a term loan of $ 200 and a line of credit up to $ 500 to Mosaic Health.

Net amounts receivable under these arrangements were $ 188 at December 31, 2024, which is included under the caption “Other invested assets” in our consolidated balance sheets as of December 31, 2024.

During the year ended December 31, 2024, we recognized $ 7 in interest income from the financing arrangement with Mosaic Health.

In addition to the term loan and line of credit, we committed to providing $ 70 of funding with no additional equity interest in Mosaic Health to meet any shortfall in operating cash flow and regulatory capital requirements of the CMSI Assets through December 31, 2026, and to fund any remaining shortfalls as necessary for which we would receive additional equity interests in Mosaic Health.

Mosaic Health borrowed $ 100 on the line of credit in December 2025.

Net amounts receivable under these arrangements were $ 282 and $ 188 at December 31, 2025 and 2024, respectively, which are included under the caption “Other invested assets” in our consolidated balance sheets as of December 31, 2025 and 2024.

During the years ended December 31, 2025 and 2024, we recognized $ 18 and $ 7 , respectively, in interest income from the financing arrangement with Mosaic Health.

In addition to the term loan and line of credit, we committed to providing $ 70 of funding for no additional equity interest in Mosaic Health to meet any shortfall in operating cash flow and regulatory capital requirements of the CMSI Assets through December 31, 2026, and to fund any remaining shortfalls as necessary for which we would receive additional equity interests in Mosaic Health.

No additional funding was provided as of December 31, 2025 or 2024.

During the year ended December 31, 2025, related party transactions with Mosaic Health included care delivery and enablement services to Elevance Health subsidiaries amounting to $ 732 , reported in benefit expense.

Care delivery and enablement services provided by Mosaic Health in 2024 were not material.

Elevance Health, Inc.

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The investment is accounted for as an equity method investment.

In connection with our equity method investment in Liberty Dental, in December 2024 we entered into a commitment to provide funding in the form of mandatorily redeemable preferred equity shares in Liberty Dental of up to $ 250 of which $ 87 was disbursed in 2024.

The mandatorily redeemable preferred equity in Liberty Dental is included in the caption “Other invested assets” in our consolidated balance sheets at December 31, 2024.

Dividend income recognized from the financing arrangement during the year ended December 31, 2024 was not material.

Mandatorily redeemable preferred equity in Liberty Dental of $ 137 and $ 87 is included in the caption “Other invested assets” in our consolidated balance sheets at December 31, 2025 and 2024, respectively.

Dividend income recognized from the financing arrangement during the year ended December 31, 2025 and 2024 was not material.

During the years ended December 31, 2025 and 2024, related party transactions with Liberty Dental included administrative services to our Medicare Advantage members under a capitated arrangement amounting to $ 583 and $ 519 , respectively, which is included in the caption “Benefit expense” in our consolidated income statements.

Investment Income

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Net investment income $ 2,194 $ 2,051 $ 1,825

Investment (Losses) Gains

Net investment (losses) gains for the years ended December 31, 2024, 2023 and 2022 are as follows:

Investment Gains (Losses)

Net investment gains (losses) for the years ended December 31, 2025, 2024 and 2023 are as follows:

2025 2024 2023

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Impairment losses recognized in income ( 21 ) ( 17 ) ( 15 )

( 17 ) ( 15 ) ( 31 )

Net realized losses on fixed maturity securities

Net realized gains (losses) on fixed maturity securities

( 134 ) ( 338 ) ( 456 )

Equity securities:

Unrealized losses recognized on equity securities still held

Unrealized gains (losses) recognized on equity securities still held

( 7 ) ( 6 ) ( 1 )

Net realized (losses) gains recognized on equity securities sold ( 9 ) 6 ( 102 )

Net (losses) gains on equity securities ( 15 ) 5 ( 180 )

Net realized gains (losses) recognized on equity securities sold

( 8 ) ( 9 ) 6

Net realized gains (losses) on equity securities

( 15 ) ( 15 ) 5

Other investments:

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Impairment losses recognized in income ( 435 ) ( 126 ) ( 291 )

Net losses on other investments

Net gains (losses) on other investments

( 502 ) ( 102 ) ( 251 )

Net losses on investments

Net gains (losses) on investments

$ ( 651 ) $ ( 455 ) $ ( 702 )

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In achieving this goal, assets may be sold to take advantage of market conditions or other investment opportunities as well as tax considerations.

Sales will generally produce realized gains and losses.

In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited

Sales will generally produce realized gains and

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to:

(i) changes in the investment environment;

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For all other impaired securities, if the impairment is deemed to be credit related, an allowance is created.

Investment securities are exposed to various risks, such as interest rate, market and credit.

Investment securities are exposed to various risks, such as interest rate, market and credit risks.

Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is possible that changes in these risk factors in the near term could have a material adverse impact on our results of operations or shareholders’ equity.

At December 31, 2025 and 2024, there were no individual investments that exceeded 10% of shareholders’ equity.

At December 31, 2024 and 2023, there were nine and eleven , respectively, fixed maturity investments that did not produce income during the years then ended.

At December 31, 2025 and 2024, there were ten and nine , respectively, fixed maturity investments that did not produce income during the years then ended.

We had unfunded loan commitments to certain equity investees of $ 1,542 and $ 1,442 at December 31, 2025 and 2024, respectively.

We do not believe such obligations will materially affect its financial position, results of operations, or cash flows.

We do not believe such obligations will materially affect our financial position, results of operations, or cash flows.

As of December 31, 2025 and 2024, we had committed approximately $ 321 and $ 423 , respectively, to future investments in rated notes.

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We also enter into master netting agreements which reduce credit risk by permitting net settlement of transactions.

At December 31, 2024 and 2023, we had posted collateral of $ 142 and $ 35 , respectively, related to our derivative financial instruments.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

At December 31, 2025 and 2024, we had received collateral of $ 34 and posted collateral of $ 142 , respectively, related to our derivative financial instruments.

A summary of the aggregate contractual or notional amounts and carrying values related to derivative financial instruments at December 31, 2025 and 2024 is as follows:

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Interest rate swaps - fixed to floating $ 6,875 Other assets/other liabilities $ 83 $ ( 44 )

Foreign currency forwards

322 Other liabilities

Foreign currency forwards 251 Other current liabilities — ( 5 )

Subtotal hedging 7,126 83 ( 49 )

6,797 8 ( 156 )

Non-hedging instruments

Interest rate swaps 5 — —

Options 2,453 Other liabilities

Futures/Forwards

124 Equity securities/other assets

Futures/Forwards 35 Equity securities/other assets — —

Subtotal non-hedging 35 Subtotal non-hedging — —

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Interest rate swaps - fixed to floating $ 6,475 Other assets/other liabilities $ 8 $ ( 150 )

Foreign currency forwards 322 Other current liabilities — ( 6 )

Subtotal hedging 6,797 Subtotal hedging 8 ( 156 )

Non-hedging instruments

Derivatives embedded in convertible securities

15 Fixed maturity securities

Interest rate swaps 5 — —

Options 161 Other liabilities

Collars 19 Equity securities 14 ( 3 )

Futures/Forwards

151 Equity securities/other assets

Interest rate swaps 5 Other assets/other liabilities — —

Futures/Forwards 124 Equity securities/other assets 3 —

Subtotal non-hedging 129 Subtotal non-hedging 3 —

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We have entered into various interest rate swap contracts to convert a portion of our interest rate exposure on our long-term debt from fixed rates to floating rates.

The floating rates payable on all of our fair value hedges are benchmarked to the Secured Overnight Financing Rate.

The floating rates payable on all of our fair value hedges are benchmarked to the Secured Overnight Financing Rate (“SOFR”).

A summary of our outstanding fair value hedges at December 31, 2025 and 2024 is as follows:

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Received Expiration Date

Interest rate swap 2025 $ 150 $ — 4.600 % March 15, 2032

Interest rate swap 2025 250 — 5.000 July 15, 2035

Interest rate swap 2024 200 200 5.500 April 15, 2032

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Interest rate swap 2023 150 150 2.550 September 15, 2030

Interest rate swap 2023 — 500 4.900 February 8, 2026

Interest rate swap 2023 125 125 4.100 September 1, 2027

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During 2025 and 2024, swaps in the notional amount of $ 150 and $ 900 , respectively, were terminated.

The unrecognized loss for all expired and terminated cash flow hedges included in accumulated other comprehensive loss, net of tax, was $ 201 and $ 211 at December 31, 2024 and 2023, respectively.

As of December 31, 2024, the total amount of amortization over the next twelve months for all cash flow hedges is estimated to increase interest expense by approximately $ 13 .

No amounts were excluded from effectiveness testing.

The unrecognized loss, net of tax, for all expired and terminated interest rate cash flow hedges included in accumulated other comprehensive loss was $ 192 and $ 201 at December 31, 2025 and 2024, respectively.

As of December 31, 2025, the total amount of amortization over the next twelve months for all interest rate cash flow hedges is estimated to increase interest expense by approximately $ 13 .

No amounts were excluded from effectiveness testing, and our cash flow hedges were determined to be highly effective during the year ended December 31, 2025.

Elevance Health, Inc.

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Year ended December 31, 2025

Options (including swaptions) Net losses on financial instruments

Collars Net losses on financial instruments

Interest rate swaps Net losses on financial instruments ( 1 )

Futures Net losses on financial instruments ( 1 )

Total $ ( 2 )

Year ended December 31, 2024

Derivatives embedded in convertible securities Net losses on financial instruments

Options (including swaptions) Net losses on financial instruments $ ( 1 )

3 unchanged sentences

Derivatives embedded in convertible securities Net losses on financial instruments $ ( 2 )

Interest rate swaps Net losses on financial instruments

Options (including swaptions) Net losses on financial instruments 3

Collars Net losses on financial instruments ( 3 )

In connection with our equity investment in Mosaic Health (see Note 5, “Investments”), we entered into a limited partnership and related agreements with the majority owners that provides for certain rights and obligations of each party, including certain put, call, and purchase price true-up options.

In connection with our equity investment in Mosaic Health (see Note 5, “Investments”), we entered into a limited partnership and related agreements with the majority owners that provide for certain rights and obligations of each party, including certain put, call, and purchase price true-up options.

These options, if exercised, will result in our purchase of the units held by the majority owners as early as 2028 but no later than 2030 at a price based on certain multiples of revenue and earnings of Mosaic Health businesses, subject to various adjustments and qualifications.

1 unchanged sentence

Significant changes in assumptions could result in significantly lower or higher fair value measurements.

The net put option’s fair value liability of $ 1,330 , which is a non-cash item measured at the date of our initial investment, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of December 31, 2024.

We have elected to not mark the net put option to market, as it is an option on large blocks of equity securities, and the carrying value of the net put option will remain on the consolidated balance sheets until it is exercised or expires.

As discussed in Note 5, “Investments,” in January 2023, we made an equity investment that resulted in our minority interest ownership of Liberty Dental.

As part of the Liberty Dental transaction, we entered into a shareholders’ agreement with the majority owners that provides for certain rights and obligations of each party, including certain put and call options.

These options could result in our purchase of the units held by the majority owners in 2026 and 2027.

We have calculated the fair value of the net put option, which is a Level III measurement (see Note 7, “Fair Value”), using a Monte Carlo simulation, which relies on assumptions, including cash flow projections, risk-free rates, volatility and details specific to the put and call options.

The carrying value of the net put option of $ 1,330 , which is a non-cash item measured at fair value at the date of our initial investment, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of December 31, 2025 and 2024.

In connection with our equity investment in Liberty Dental (see Note 5, “Investments”), we entered into an agreement with the majority owners that provides for certain rights and obligations of each party, including certain put and call options.

These options, if exercised, will result in our purchase of the units held by the majority owners as early as July 1, 2026 but no later than 2027 at a price based on certain multiples of earnings of Liberty Dental, subject to various adjustments and qualifications.

We calculated the fair value of the net put option, which is a Level III measurement (see Note 7, “Fair Value”), based on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options.

Significant changes in assumptions could result in significantly lower or higher fair value measurements.

The net put option’s fair value liability of $ 85 determined as of December 31, 2023 is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of December 31, 2024 and 2023.

We have elected to not mark the net put option to market, and the carrying value of the net put option will remain on the consolidated balance sheets until it is exercised or expires.

On March 28, 2025, the terms of the put and call options were substantially amended.

The previous net put option liability of $ 85 at December 31, 2024 was extinguished and we recognized a new net put option liability at its estimated fair value on March 28, 2025 of $ 396 , which is included under the caption “Other noncurrent liabilities” in our consolidated balance sheet as of December 31, 2025.

Elevance Health, Inc.

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These derivatives are designated as Level III securities.

In addition, the following methods and assumptions were used to determine the fair value of each class of pension benefit plan assets and other benefit plan assets not defined above (see Note 11, “Retirement Benefits,” for fair values of benefit plan assets):

In addition, the following methods and assumptions were used to determine the fair value of each class of the qualified pension plan assets not defined above (see Note 11, “Retirement Benefits,” for fair values of qualified pension plan assets):

Mutual funds:

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Partnership investments:

Fair values are estimated based on the plan’s ownership share of the partnerships’ net assets, as reported in their periodic capital statements, and are valued using NAV as a practical expedient.

The partnerships primarily consist of a real estate investment fund which acquires investments in real estate entities, and an energy fund which invests in public and private oil and gas companies principally through privately issued securities.

Fair values are estimated based on the plan’s proportionate ownership of the partnerships’ net assets as reported in their periodic capital statements and is measured using NAV as a practical expedient.

The partnerships primarily include a real estate investment fund that invests in real estate entities and provides for quarterly redemptions with 45 days' notice prior to quarter-end, with no unfunded commitments.

Collective investment trusts (“CITs”):

Fair values are based on the NAV of the units held by the plan at year end and are valued using NAV as a practical expedient.

Fair values are based on the NAV of the units held by the plan at year end and are measured using NAV as a practical expedient.

The CITs are passive index funds that seek investment results that generally correspond to the performance of the Bloomberg U.S.

Intermediate Treasury Index.

Redemptions are permitted daily with two days' notice.

Commingled fund:

Fair value is based on NAV per fund share and is valued using NAV as a practical expedient.

Fair value is based on NAV per fund share and is measured using NAV as a practical expedient.

The fund primarily invests in publicly traded equity securities of issuers within the fund’s benchmark.

The objective of the fund is to produce returns in excess of the relevant benchmark over rolling five-year periods.

Redemptions are permitted on the first and fifteenth of the month with seven business days' notice.

Insurance company contracts:

Fair value is based on the fair value of the underlying investments of the account as determined by the insurance company.

Investment in DOL 103-12 trust:

Fair value is based on the plan’s proportionate share of the fair value of investments held by the trust, qualified as a Department of Labor Regulation 2520.103-12 entity (“DOL 103-12 trust”) as reported in the audited financial statements of the trust, where the trustee applies fair value measurements to the underlying investments of the trust.

Life insurance contracts:

Fair value is based on the cash surrender value of the policies as reported by the insurance carriers.

Fair value is based on the fair value of the underlying investments of the group annuity investment account as determined by the insurance company.

Investments primarily consist of intermediate-term fixed income investments, commercial and residential mortgages, asset-backed securities, and U.S.

government and agency-backed securities.

Elevance Health, Inc.

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Total liabilities $ — $ ( 150 ) $ — $ ( 150 )

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the years ended December 31, 2024, 2023 and 2022 is as follows:

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the years ended December 31, 2025, 2024 and 2023 is as follows:

Securities Residential

6 unchanged sentences

Recognized in accumulated other comprehensive income 12 — 17 — 29

Purchases 26 10 118 17 171

384 13 162 54 613

Sales — — ( 8 ) ( 62 ) ( 70 )

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There were no individually material transfers into or out of Level III during the years ended December 31, 2025, 2024 or 2023.

There were no adjustments to quoted market prices obtained from the pricing services during the years ended December 31, 2025, 2024 or 2023.

Certain assets and liabilities are measured at fair value on a nonrecurring basis;

that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances.

As disclosed in Note 3, “Business Acquisitions and Divestitures,” we completed our acquisitions of Centers, CareBridge and Paragon in 2024 and BioPlus in 2023.

The net assets acquired in these acquisitions and resulting goodwill and other intangible assets were recorded at fair value primarily using Level III inputs.

The majority of assets acquired and liabilities assumed were recorded at their carrying values as of the respective date of acquisition, as their carrying values approximated their fair values due to

We completed our

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

their short-term nature.

The fair values of goodwill and other intangible assets acquired in our acquisitions of Centers, CareBridge, Paragon and BioPlus were estimated based on the income approach.

acquisitions of Centers, CareBridge and Paragon in 2024.

The net assets acquired in these acquisitions and resulting goodwill and other intangible assets were initially recorded at fair value primarily using Level III inputs.

The majority of assets acquired and liabilities assumed were recorded at their carrying values as of the respective date of acquisition, as their carrying values approximated their fair values due to their short-term nature.

The fair values of goodwill and other intangible assets acquired in our acquisitions of Centers, CareBridge and Paragon were finalized as of December 31, 2025 based on a valuation performed using the income approach.

The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future.

We developed internal estimates for the expected cash flows and discount rate in the present value calculation.

Also, we entered into agreements which included certain put and call options associated with our minority interest ownership of Mosaic Health in 2024 and Liberty Dental in 2023.

Also, as discussed further in Note 5 “Investments”, we entered into agreements which included certain put and call options associated with our minority interest ownership of Mosaic Health in 2024 and Liberty Dental in 2023 (as amended in 2025).

The resulting net put option liabilities were recorded at their fair values measured at the dates of acquisition using Level III inputs with an election not to mark the derivative to market, which is further discussed and disclosed in Note 6, “Derivatives”.

The net put option carrying value for Mosaic Health was $ 1,330 at December 31, 2024.

The net put option fair value for Mosaic Health was $ 2,717 and $ 1,330 at December 31, 2025 and 2024, respectively.

The net put option fair value for Liberty Dental was $ 327 and $ 543 at December 31, 2025 and 2024, respectively.

Other than the assets acquired and liabilities assumed in our acquisitions of CareBridge, Centers, Paragon and BioPlus and the net put options on Mosaic Health and Liberty Dental described above, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2024 or 2023.

Other than the assets acquired and liabilities assumed in connection with our acquisitions of Centers, CareBridge and Paragon, and the net put options on Mosaic Health and Liberty Dental described above, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2025 or 2024.

Our valuation policy is determined by members of our treasury and accounting departments.

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Our analysis includes procedures such as a review of month-to-month price fluctuations and price comparisons to secondary pricing services.

There were no adjustments to quoted market prices obtained from the pricing services during the years ended December 31, 2024, 2023 or 2022.

In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets.

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Other invested assets primarily include our mortgage loans and notes receivables.

Mortgage loans are carried at amortized cost net of loss allowance.

Mortgage loans

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

are carried at amortized cost net of loss allowance.

The fair value of mortgage loans is measured using discounted cash flows benchmarked against the 10-year U.S.

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The fair value of notes receivables is the present value of discounted future cash flows.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Short-term borrowings :

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Notes 30,867 — 28,460 — 28,460

1,415 — — 1,873 1,873

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The components of deferred income taxes at December 31, 2024 and 2023 are as follows:

T he components of deferred income taxes at December 31, 2025 and 2024 are as follows:

Deferred income tax assets:

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Foreign (including Puerto Rico) carryforwards 236 139

Other 100 166

Subtotal 2,431 2,411

12 unchanged sentences

Net deferred income tax liabilities $ 1,811 $ 1,942

Deferred tax balances are classified by deferred tax assets and deferred tax liabilities by taxing jurisdiction in the financial statements.

We recognized $ 298 and $ 206 of deferred tax asset under the caption “Other noncurrent assets” at December 31, 2025 and 2024, respectively.

5 unchanged sentences

Notes to Consolidated Financial Statements (continued)

Significant components of income before income tax expense for the years ended December 31, 2025, 2024 and 2023 consist of the following:

2025 2024 2023

Domestic U.S.

6,322 7,629 7,580

Foreign (including Puerto Rico) 388 275 135

Income before income tax expense

$ 6,710 $ 7,904 $ 7,715

Income before income taxes, as shown above, is based on the location of the entity to which such earnings are attributable.

Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located.

Thus, the income tax provision shown below as federal or foreign may not correspond to the earnings shown above.

Significant components of the provision for income taxes for the years ended December 31, 2025, 2024 and 2023 consist of the following:

5 unchanged sentences

Total current tax expense 1,327 2,294 2,414

Deferred tax benefit

Deferred tax expense (benefit):

Federal ( 42 ) ( 232 ) ( 413 )

Foreign (including Puerto Rico) ( 180 ) ( 134 ) ( 167 )

State and local ( 56 ) 5 ( 110 )

Total deferred tax expense (benefit)

( 278 ) ( 361 ) ( 690 )

1 unchanged sentence

State and local current tax expense is reported gross of federal benefit in the preceding table, and includes amounts related to audit settlements, uncertain tax positions, state tax credits and true up of prior years’ tax.

Such items are included on a net of federal tax basis in multiple lines in the following rate reconciliation table.

A reconciliation of income tax expense recorded in the consolidated statements of income and amounts computed at the statutory federal income tax rate for the years ended December 31, 2024, 2023 and 2022 is as follows:

Such items are included on a net of federal tax basis in the state and local income taxes line in the following 2025 rate reconciliation table and in multiple lines in the 2024 and 2023 rate reconciliation table.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

A reconciliation of income tax expense recorded in the consolidated statements of income and amounts computed at the statutory federal income tax rate for the year ended December 31, 2025 is as follows:

Amount Percent

Amount at statutory rate $ 1,409 21.0 %

State and local income taxes, net of federal tax expense/benefit(1)

Energy-related tax credits

( 86 ) ( 1.3 ) %

Amount Percent Amount Percent Amount Percent

( 62 ) ( 0.9 ) %

Nontaxable or nondeductible items:

Legal entity restructuring

( 176 ) ( 2.6 ) %

( 75 ) ( 1.1 ) %

Changes in unrecognized tax benefits ( 71 ) ( 1.1 ) %

Other, net ( 11 ) ( 0.2 ) %

Total income tax expense $ 1,049 15.6 %

'(1) State taxes in California, Indiana, Florida, and New York City contributed to the majority of the tax effect in this category.

During the year ended December 31, 2025, we recognized income tax expense of $ 1,049 , or $ 4.67 per diluted share.

The decrease in effective income tax rate for 2025 compared to 2024 was primarily due to a discrete non-operating tax benefit and favorable resolution of uncertain tax positions.

The discrete non-operating tax benefit related to an internal restructuring of certain Elevance Health subsidiaries.

Amount Percent Amount Percent

Amount at statutory rate $ 1,660 21.0 % $ 1,620 21.0 %

8 unchanged sentences

During the year ended December 31, 2024, we recognized income tax expense of $ 1,933 , or $ 8.30 per diluted share.

The increase in effective income tax rate for 2024 compared to 2023 was primarily due to the impact of geographic changes in the mix of 2024 earnings.

During the year ended December 31, 2023, we recognized income tax expense of $ 1,724 , or $ 7.26 per diluted share.

The decrease in effective income tax rate for 2023 compared to 2022 was primarily due to the impact of geographic changes in the mix of 2023 earnings.

The increase in effective income tax rate for 2024 compared to 2023 was primarily from state and local income taxes due to the impact of geographic changes in the mix of 2024 earnings.

During the year ended December 31, 2023, we recognized income tax expense of $ 1,724 , or $ 7.26 per diluted share.

The decrease in effective income tax rate for 2023 compared to 2022 was primarily from state and local income taxes due to the impact of geographic changes in the mix of 2023 earnings.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The change in the carrying amount of gross unrecognized tax benefits from uncertain tax positions for the years ended December 31, 2025 and 2024 is as follows:

5 unchanged sentences

Tax positions related to prior years ( 255 ) ( 50 )

Settlements with taxing authorities ( 62 ) ( 5 )

Balance at December 31 $ 547 $ 775

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The table above excludes interest, net of related tax benefits, which is treated as income tax expense (benefit) under our accounting policy.

The interest is included in the amounts described in the following paragraph.

The table above excludes interest and penalties, net of related tax benefits, which are treated as income tax expense (benefit) under our accounting policy.

The interest and penalties are included in the amounts described in the following paragraph.

The amount of unrecognized tax benefits that would impact our effective tax rate in future periods, if recognized, was $ 630 and $ 804 at December 31, 2025 and 2024, respectively.

Also included in the table above, at December 31, 2025, is $ 2 that would be recognized as an adjustment to additional paid-in capital, which would not affect our effective tax rate.

For the years ended December 31, 2024, 2023 and 2022, we recognized net interest expense of $ 57 , $ 24 and $ 13 , respectively.

For the years ended December 31, 2025, 2024 and 2023, we recognized net interest (benefit) expense of ($ 15 ), $ 57 and $ 24 , respectively.

We had accrued approximately $ 147 and $ 165 for the payment of interest at December 31, 2025 and 2024, respectively.

For the years ended December 31, 2024, 2023 and 2022 we recognized net penalty expense of $ 7 , $ 17 and $ 0 , respectively.

For the years ended December 31, 2025, 2024 and 2023 we recognized net penalty expense (benefit) of ($ 41 ), $ 7 and $ 17 , respectively.

We had accrued approximately $ 41 and $ 85 for the payment of penalties at December 31, 2025 and 2024, respectively.

As of December 31, 2024, as further described below, certain tax years remain open to examination by the Internal Revenue Service (“IRS”) and various state, local and foreign authorities.

As a result of these examinations and discussions with taxing agencies, we have recorded amounts for uncertain tax positions.

It is anticipated that the amount of unrecognized tax benefits will change in the next twelve months due to possible settlements of audits and changes in temporary items.

However, the ultimate resolution of these items is dependent on the completion of negotiations with various taxing authorities.

While it is difficult to determine when other tax settlements will actually occur, it is reasonably possible that one could occur in the next twelve months and our unrecognized tax benefits could be reduced within a range of approximately $ 137 to $ 475 .

We are a member of the IRS Compliance Assurance Process (“CAP”).

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State and local net operating loss carryforwards of $ 456 , of which $ 447 will expire beginning 2026 through 2044, and $ 9 have an indefinite carryforward period.

Foreign net operating loss carryforward of $ 90 will expire beginning 2033.

Income taxes receivable totaled $ 138 and $ 543 at December 31, 2024 and 2023, respectively.

We recognized the income tax receivable of $ 213 and $ 543 as an asset under the caption “Other current assets” and the income tax payable of $ 75 and $ 0 as a liability under the caption “Other current liabilities” in our consolidated balance sheets as of December 31, 2024 and December 31, 2023, respectively.

During 2024, 2023 and 2022, federal income taxes paid totaled $ 1,303 , $ 1,936 and $ 1,594 , respectively.

Foreign net operating loss carryforward of $ 188 will expire beginning 2033 through 2035.

Income taxes netted to a receivable of $ 436 and $ 138 at December 31, 2025 and 2024, respectively.

We recognized the income tax receivable of $ 587 and $ 213 by taxing jurisdiction as an asset under the caption “Other current assets” and the income tax payable of $ 151 and $ 75 by taxing jurisdiction as a liability under the caption “Other current liabilities” in our consolidated balance sheets as of December 31, 2025 and 2024, respectively.

During 2025, 2024 and 2023, federal income taxes due totaled $ 1,367 , $ 1,411 and $ 1,936 , respectively.

During 2025 and 2024.

we utilized transferable federal tax credits of $ 1,304 and $ 108 , respectively, to satisfy our federal income taxes due.

During 2025, state income taxes paid totaled $ 315 .

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Property and Equipment

8 unchanged sentences

Property and equipment, net $ 4,679 $ 4,652

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Depreciation expense for 2025, 2024 and 2023 was $ 94 , $ 105 and $ 107 , respectively.

1 unchanged sentence

Capitalized costs related to the internal development of software of $ 6,694 and $ 6,363 at December 31, 2025 and 2024, respectively, are reported with computer software.

Impairment of property and equipment for the years ended December 31, 2024, 2023 and 2022 was $ 72 , $ 446 , and $ 7 , respectively, which is included in Operating expenses and primarily related to our activities disclosed in Note 4, “Business Optimization Initiatives.”

Impairment of property and equipment for the years ended December 31, 2025, 2024 and 2023 was $ 129 , $ 72 , and $ 446 , respectively, which is included in Operating expenses and primarily related to pre-tax charges for information technology asset write-offs and asset impairments related to the closure or partial closure of offices .

Goodwill and Other Intangible Assets

7 unchanged sentences

Accumulated impairment as of December 31, 2025 $ — $ — $ — $ —

$ — $ — $ ( 106 ) $ ( 106 )

As required by FASB guidance, we completed annual impairment tests of existing goodwill and other intangible assets with indefinite lives during 2025, 2024 and 2023.

4 unchanged sentences

For quantitative testing, the fair values are estimated using the projected income and market valuation approaches, incorporating Level III internal estimates for inputs, including, but not limited to, revenue projections, income projections, cash flows and discount rates.

In 2024, we incurred goodwill impairment losses of $ 106 in our Carelon Services reporting segment specific to the fair valuation of the CMSI assets included in assets and liabilities held for sale as discussed in Note 5, “Investments.” Otherwise, the estimated fair values of our reporting units were substantially in excess of their carrying values.

We did not incur any impairment losses in 2025 or 2023, as the estimated fair values of our reporting units were substantially in excess of their carrying values.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

January 1, 2025 as discussed in Note 5, “Investments.” Otherwise, the estimated fair values of our reporting units were substantially in excess of their carrying values.

The components of other intangible assets as of December 31, 2025 and 2024 are as follows:

13 unchanged sentences

Other intangible assets $ 14,386 $ ( 3,186 ) $ 11,200 $ 16,559 $ ( 4,465 ) $ 12,094

In 2024, additions to the gross carrying amount of customer relationships primarily relate to the acquisitions of Centers, CareBridge and Paragon.

Intangible assets with finite lives, along with the related accumulated amortization, are removed from the table above at the end of the fiscal year in which they become fully amortized.

Fully amortized finite-lived intangibles with a gross carrying amount and accumulated amortization of $ 1,906 and $ 27 were retired in 2025 and 2024, respectively.

Measurement period adjustments to the gross carrying amount of finite-lived intangible assets during the year ending December 31, 2025 associated with our acquisition of Carebridge were $( 690 ).

As of December 31, 2025, the estimated amortization expense for each of the five succeeding years is as follows:

4 unchanged sentences

and 2030, $ 263 .

Retirement Benefits

We sponsor various non-contributory employee defined benefit plans through certain subsidiaries.

Future benefit accruals for these plans are frozen, but participants continue to earn interest on existing account balances.

We also have a post-retirement health and welfare plan that primarily provides healthcare benefits to certain eligible employees.

The majority of the pension and post-retirement plans are over funded.

We fund our qualified pension plans at least sufficient to meet minimum amounts required by law.

Pension and post-retirement healthcare plan expenses and valuations are dependent on assumptions used by third-party actuaries in calculating those amounts.

These assumptions include discount rates, healthcare cost trends, long-term return on plan assets, retirement rates, mortality rates and other factors.

The reconciliation of the benefit obligations for the plans is as follows:

Pension Benefits Other Benefits

2024 2023 2024 2023

Benefit obligation at beginning of year $ 1,393 $ 1,415 $ 255 $ 277

Interest cost 63 68 12 14

Plan participant contributions — — 16 16

Actuarial (gain) loss ( 61 ) 40 ( 10 ) ( 12 )

Settlements ( 27 ) ( 27 ) — —

Benefits paid ( 105 ) ( 103 ) ( 35 ) ( 40 )

Benefit obligation at end of year $ 1,263 $ 1,393 $ 238 $ 255

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The changes in the fair value of plan assets are as follows:

Pension Benefits Other Benefits

2024 2023 2024 2023

Fair value of plan assets at beginning of year $ 1,807 $ 1,734 $ 313 $ 299

Actual return on plan assets 83 199 29 42

Employer contributions 6 4 — —

Plan participant contributions — — 16 16

Settlements ( 27 ) ( 27 ) 4 —

Benefits paid ( 105 ) ( 103 ) ( 37 ) ( 44 )

Fair value of plan assets at end of year $ 1,764 $ 1,807 $ 325 $ 313

The amounts included in the consolidated balance sheets are as follows:

Pension Benefits Other Benefits

2024 2023 2024 2023

Noncurrent assets $ 539 $ 459 $ 87 $ 58

Current liabilities ( 4 ) ( 7 ) — —

Noncurrent liabilities ( 34 ) ( 38 ) — —

Net amount at end of year

$ 501 $ 414 $ 87 $ 58

Our estimated future payments for pension benefits and other benefits are as follows:

Benefits Other

2025 $ 128 $ 26

2030 - 2034 472 99

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The components of net periodic benefit credit included in the consolidated statements of income are as follows:

2024 2023 2022

Pension Benefits

Interest cost $ 63 $ 68 $ 52

Expected return on assets ( 117 ) ( 127 ) ( 101 )

Recognized actuarial loss 14 9 16

Settlement loss 6 7 28

Net periodic benefit credit $ ( 34 ) $ ( 43 ) $ ( 5 )

Other Benefits

Interest Cost

$ 12 $ 14 $ 7

Expected return on assets

( 22 ) ( 21 ) ( 26 )

Amortization of prior service credit

( 1 ) ( 2 ) ( 4 )

Recognized actuarial gain

Net periodic benefit credit $ ( 12 ) $ ( 9 ) $ ( 23 )

The net amounts included in accumulated other comprehensive income (loss) that have not been recognized as components of net periodic benefit costs are as follows:

Pension Benefits Other Benefits

2024 2023 2024 2023

Net actuarial gain (loss)

$ ( 580 ) $ ( 625 ) $ 55 $ 38

Prior service credit — — — 2

Net amount before tax at end of year

$ ( 580 ) $ ( 625 ) $ 55 $ 40

The pre-tax amounts recognized in other comprehensive loss are as follows:

2024 2023 2022

Pension Benefits

Net actuarial gain (loss)

$ 25 $ 31 $ ( 91 )

Recognized actuarial loss

Settlement loss

Total pre-tax other comprehensive income (loss)

$ 45 $ 47 $ ( 47 )

Other Benefits

Net actuarial gain (loss)

$ 17 $ 34 $ ( 32 )

Recognized actuarial gain

Prior service credit

( 1 ) ( 2 ) ( 5 )

Total pre-tax other comprehensive income (loss)

$ 15 $ 32 $ ( 37 )

The accumulated benefit obligation for the defined benefit pension plans was $ 1,262 and $ 1,391 at December 31, 2024 and 2023, respectively.

As of December 31, 2024, certain pension plans had accumulated benefit obligations in excess of plan assets.

Such plans had accumulated benefit obligation and fair value of plan assets of $ 38 and $ 0 , respectively.

In addition, certain plans had projected benefit obligations in excess of plan assets.

Such plans had projected benefit obligation and fair value of plan assets of $ 38 and $ 0 , respectively.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The following table represents the significant weighted-average actuarial assumptions for all plans:

Pension Benefits Other Benefits

2024 2023 2024 2023

Retirement Benefits

We sponsor various qualified defined benefit plans through certain subsidiaries.

Future benefit accruals for these plans are frozen, but participants continue to earn interest on existing account balances.

We fund our qualified pension plans in amounts that are at least sufficient to meet minimum amounts required by law.

Qualified pension plan expenses and valuations are dependent on assumptions used by third-party actuaries in calculating those amounts.

These assumptions include discount rates, expected rates of return on plan assets, retirement rates, mortality rates and other factors.

We also sponsor the Elevance Health 401(k) Plan, which is a qualified defined contribution plan covering substantially all employees.

Voluntary employee contributions are matched by us subject to certain limitations.

Contributions made by us totaled $ 317 , $ 314 and $ 316 during 2025, 2024 and 2023, respectively.

The benefit obligations and fair value of plan assets for the qualified pension plans as of December 31, 2025 and 2024 were as follows:

Benefit obligation

Discount rate

$ ( 1,195 ) $ ( 1,225 )

Interest Crediting rate

Fair value of plan assets

Over (under) funded status

Prepaid pension benefits for the qualified pension plans are reported with “Other noncurrent assets” on the consolidated balance sheets.

As of December 31, 2025, our estimated future payments for the qualified pension plans are as follows:

2026, $ 129 ;

The following table represents the significant weighted-average actuarial assumptions for all plans:

2027, $ 106 ;

2028, $ 103 ;

and 2031-2035, $ 439 .

The net periodic benefit cost (credit) for the qualified pension plans included in “Operating expense” in the consolidated statements of income was ($ 17 ), ($ 38 ) and ($ 46 ) for the years ending December 31, 2025, 2024 and 2023, respectively.

The net pre-tax actuarial losses included in accumulated other comprehensive income (loss) for the qualified pension plans that have not been recognized as net periodic benefit cost were ($ 509 ) and ($ 574 ) as of December 31, 2025 and 2024, respectively.

The following table represents the significant weighted-average actuarial assumptions for the qualified pension plans:

Net periodic benefit cost

Pension Benefits

2025 2024 2023

Discount rate 5.47 % 4.91 % 5.18 %

1 unchanged sentence

Interest crediting rate 4.50 % 4.50 % 4.25 %

Other Benefits

Benefit obligation

2025 2024 2023

Discount rate 5.24 % 5.47 % 4.91 %

Expected rate of return on plan assets 6.64 % 6.57 % 6.43 %

Interest crediting rate 4.50 % 4.50 % 4.50 %

The assumed healthcare cost trend rates used to measure the expected cost of pre-Medicare (those who are not currently eligible for Medicare benefits) benefits at December 31, 2024 was 8.00 % for 2025, with a gradual decline to 4.50 % by the year 2035.

The assumed healthcare cost trend rates used to measure the expected medical and pharmacy cost of post-Medicare (those who are currently eligible for Medicare benefits) benefits at December 31, 2024 was 5.50 % and 10.00 % for 2025, respectively, both with a gradual decline to 4.50 % by the year 2035.

These estimated trend rates are subject to change in the future.

Plan assets include a diversified mix of equity securities, investment grade fixed maturity securities and other types of investments across a range of sectors and levels of capitalization to maximize long-term return for a prudent level of risk.

The weighted-average target allocation for pension benefit plan assets is 35 % equity securities, 63 % fixed maturity securities, and 2 % to all other types of investments.

Equity securities primarily include a mix of domestic securities, foreign securities and mutual funds invested in equities.

Fixed maturity securities primarily include corporate bonds, treasury securities and asset-backed investments issued by corporations and the U.S.

Other types of investments include insurance contracts designed specifically for employee benefit plans, an investment in a DOL 103-12 trust and certain alternative investments.

As of December 31, 2024, there were no significant concentrations of investments in the pension benefit assets or other benefit assets.

No plan assets were invested in Elevance Health common stock.

Pension benefit assets and other benefit assets recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

In accordance with FASB guidance, certain alternative investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

The fair value amounts presented are intended to permit reconciliation of the fair value hierarchy to the total plan assets.

The fair values of our pension benefit assets and other benefit assets by asset category and level inputs at December 31, 2024, excluding cash, investment income receivable and amounts due to/from brokers of $ 30 , and excluding estimated claims settlements to be paid from other benefit assets of $( 19 ), are as follows (see Note 7, “Fair Value,” for additional information regarding the definition of level inputs):

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Level I Level II Level III Total

December 31, 2024

Pension Benefit Assets:

Cash equivalents

$ 6 $ — $ — $ 6

Equity securities:

securities 307 — — 307

Foreign securities 71 — — 71

Mutual funds 44 — — 44

The fair values of our qualified pension plan assets by category at December 31, 2025 and 2024 were as follows:

Cash and cash equivalents

Fixed maturity securities

Government securities — 78 — 78

Corporate securities — 539 — 539

Asset-backed securities — 3 — 3

Other types of investments:

Insurance company contracts — — 143 143

Total pension benefit assets at fair value $ 428 $ 620 $ 143 1,191

Alternative investments

Total pension benefit assets $ 1,734

Other Benefit Assets:

Equity securities

securities $ 7 $ — $ — $ 7

Foreign securities 2 — — 2

Mutual funds 48 44

Other types of investments:

Life insurance contracts — — 301 301

Investment in DOL 103-12 trust — 9 — 9

Total other benefit assets at fair value

$ 25 $ 9 $ 301 335

Alternative investments

Total other benefit assets

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The fair values of our pension benefit assets and other benefit assets by asset category and level inputs at December 31, 2023, excluding cash, investment income receivable and amounts due to/from brokers of $ 43 , and excluding estimated claims settlements to be paid from other benefit assets of $( 23 ), are as follows:

Level I Level II Level III Total

December 31, 2023

Pension Benefit Assets:

Cash equivalents

$ 2 $ — $ — $ 2

Equity securities:

securities 390 — — $ 390

Foreign securities 94 — — 94

Mutual funds 42 — — 42

Fixed maturity securities:

Government securities — 70 — 70

Corporate securities — 522 — 522

Asset-backed securities — 2 — 2

Other types of investments:

Insurance company contracts

Total pension benefit assets at fair value $ 528 $ 594 $ 143 1,265

Alternative investments

Total pension benefit assets $ 1,765

Other Benefit Assets:

Equity securities:

securities $ 7 $ — $ — $ 7

Foreign securities 2 — — 2

Mutual funds 17 — — 17

Other types of investments:

Life insurance contracts — — 289 289

Investment in DOL 103-12 trust — 9 — 9

Total other benefit assets at fair value

$ 26 $ 9 $ 289 324

Alternative investments

Total other benefit assets

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The following table provides additional information on the alternative investments that are measured using NAV as a practical expedient:

Fair Value as of December 31 Unfunded Commitments as of December 31, 2024 Redemption Frequency (if applicable) Redemption Notice Period

Collective investment trusts 484 413

Pension benefit assets

Other benefit assets

421 355 $ — Daily

Commingled fund 86 69

Pension benefit assets

Other benefit assets

Total commingled fund

70 86 — 1st & 15th of the month

7 business days

Partnership investments 61 70 1 Not Applicable

Not Applicable

Total alternative investments $ 552 $ 511 $ 1

A reconciliation of the beginning and ending balances of plan assets measured at fair value using Level III inputs for the years ended December 31, 2024, 2023 and 2022 is as follows:

Contracts Life

Contracts Total

Year ended December 31, 2024

Beginning balance at January 1, 2024 $ 143 $ 289 $ 432

Actual return on plan assets relating to assets still held at the reporting date

Purchases 6 — 6

Sales ( 9 ) ( 16 ) ( 25 )

Ending balance at December 31, 2024 $ 143 $ 301 $ 444

Year ended December 31, 2023

Beginning balance at January 1, 2023 $ 154 $ 270 $ 424

Actual return on plan assets relating to assets still held at the reporting date

Purchases 6 — 6

Sales ( 20 ) ( 18 ) ( 38 )

Ending balance at December 31, 2023 $ 143 $ 289 $ 432

Year ended December 31, 2022

Beginning balance at January 1, 2022 $ 179 $ 338 $ 517

Actual return on plan assets relating to assets still held at the reporting date

Total fair value of plan assets

$ 1,816 $ 1,764

Purchases 9 — 9

Sales ( 12 ) ( 15 ) ( 27 )

Ending balance at December 31, 2022 $ 154 $ 270 $ 424

There were no transfers into or out of Level III during the years ended December 31, 2024, 2023 or 2022.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

In addition to the defined benefit plans, we maintain the Elevance Health 401(k) Plan, which is a qualified defined contribution plan covering substantially all employees.

Voluntary employee contributions are matched by us subject to certain limitations.

Contributions made by us totaled $ 314 , $ 316 and $ 275 during 2024, 2023 and 2022, respectively.

As of December 31, 2025 and 2024, there were no significant concentrations of investments in the pension plan assets.

No plan assets were invested in Elevance Health common stock.

The weighted-average target allocation for pension plan assets is 75 % fixed maturity securities, 20 % equity securities, and 5 % to all other types of investments.

Qualified pension plan assets recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

Equity securities, comprised of U.S.

and foreign securities, and mutual funds are classified as Level I.

Fixed maturity securities, comprised of corporate bonds, government securities and asset-backed securities, are classified as Level II.

Insurance company contracts are classified as Level III.

There were no transfers into or out of Level III during the years ended December 31, 2025, 2024 and 2023 nor was the activity for the Level III assets significant for these periods.

In accordance with FASB guidance, certain other investments including collective investment trusts, a commingled fund and partnership investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

See Note 7, “Fair Value,” for additional information regarding the definition of level inputs and the other investments.

Medical Claims Payable

16 unchanged sentences

Gross medical claims payable, end of year $ 16,829 $ 15,580 $ 15,865

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Amounts incurred related to prior years vary from previously estimated liabilities as the claims are ultimately settled.

13 unchanged sentences

Total $ ( 1,290 ) $ ( 1,731 ) $ ( 1,571 )

The favorable development recognized in 2025 resulted primarily from trend factors in late 2024 developing more favorably than originally expected as well as a smaller but significant contribution from completion factor development.

The favorable development recognized in 2024 resulted primarily from completion factors developing more favorably than originally expected as well as a smaller but significant contribution from trend factors in late 2023.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The favorable development recognized in 2023 resulted primarily from trend factors in late 2022 developing more favorably than originally expected.

Favorable development in the completion factors in late 2022 also contributed to the favorable development in 2023.

The favorable development recognized in 2022 resulted primarily from trend factors in late 2021 developing more favorably than originally expected as well as a smaller contribution from completion factor development.

The reconciliation of net incurred medical claims to benefit expense included in the consolidated statements of income is as follows:

1 unchanged sentence

2025 2024 2023

Net incurred medical claims with medical claims payable

$ 140,560 $ 123,639 $ 120,227

Performance-based risk arrangements without medical claims payable

Total net incurred medical claims 144,276 123,639 120,227

8 unchanged sentences

Total $ 403,970

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Paid claims development, net of reinsurance, for the years ended December 31, 2025, 2024 and 2023 is as follows:

13 unchanged sentences

Our cumulative number of reported claims may not be comparable to similar measures reported by other health benefits companies.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The reconciliation of incurred and paid claims development information for the three years ended December 31, 2025, reflected in the tables above, to the consolidated ending balance for medical claims payable included in the consolidated balance sheets, as of December 31, 2025, is as follows:

4 unchanged sentences

Insurance lines other than short duration 255

Liabilities held for sale

Gross medical claims payable, end of year $ 17,084

5 unchanged sentences

We have a senior revolving credit facility (the “ 5 -Year Facility”) with a group of lenders for general corporate purposes.

The 5 -Year Facility provides credit of up to $ 4,000 and matures in April 2027.

Our ability to borrow under the 5 -Year Facility is subject to compliance with certain covenants, including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60 %, subject to increase in certain circumstances set forth in the credit agreement for the 5 -Year Facility.

On September 5, 2025, we amended and restated the credit agreement for the 5 -Year Facility to, among other things, extend the maturity date of the 5 -Year Facility from April 2027 to September 2030 and increase the amount of credit available under the 5 -Year Facility from $ 4,000 to $ 5,000 .

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

to increase in certain circumstances set forth in the credit agreement for the 5 -Year Facility.

As of December 31, 2025, our debt-to-capital ratio, as defined and calculated under the 5 -Year Facility, was 42.1 %.

3 unchanged sentences

We have an authorized commercial paper program of up to $ 5,000 , the proceeds of which may be used for general corporate purposes.

At December 31, 2024 and 2023, we had $ 0 outstanding under our commercial paper program.

Beginning in 2023, we reclassified our commercial paper balances from long-term debt to short-term debt as our intent is to not replace short-term commercial paper outstanding at expiration with additional short-term commercial paper for an uninterrupted period extending for more than one year.

In October 2025, we increased the amount available under the commercial paper program from $ 4,000 to $ 5,000 .

There were no amounts outstanding under our commercial paper program at December 31, 2025 or 2024.

Elevance Health, Inc.

43 unchanged sentences

5.700 %, due 2055

5.850 % due 2064

Surplus note:

7 unchanged sentences

All debt is a direct obligation of Elevance Health, Inc., except for the surplus note and the FHLB borrowings.

We generally issue senior unsecured notes (“Notes”) for long-term borrowing purposes.

Certain of these Notes may have a call feature that allows us to redeem the Notes at any time at our option and/or a put feature that allows a Note holder to

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

redeem the Notes upon the occurrence of both a change in control event and a downgrade of the Notes below an investment grade rating.

We generally issue senior unsecured notes (“Notes”) for long-term borrowing purposes.

Certain of these Notes may have a call feature that allows us to redeem the Notes at any time at our option and/or a put feature that allows a Note holder to redeem the Notes upon the occurrence of both a change in control event and a downgrade of the Notes below an investment grade rating.

On September 15, 2025, we issued $ 750 aggregate principal amount of 4.000 % Notes due 2028 (the “2028 Notes”), $ 750 aggregate principal amount of 4.600 % Notes due 2032 (the “2032 Notes”), $ 1,000 aggregate principal amount of 5.000 % Notes due 2036 (the “2036 Notes”), and $ 500 aggregate principal amount of 5.700 % Notes due 2055 (the “2055 Notes”, and, together with the 2028 Notes, the 2032 Notes and the 2036 Notes, the “Notes”) under our shelf registration statement.

Interest on the 2028 Notes, the 2032 Notes, and the 2055 Notes are payable semi-annually in arrears on March 15 and September 15 of each year, commencing March 15, 2026.

Interest on the 2036 Notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing January 15, 2026.

We used the net proceeds from the issuance of the Notes to redeem all of the $ 400 aggregate principal amount of our 5.350 % senior notes due 2025 and the $ 500 aggregate principal amount of our 4.900 % senior notes due 2026.

We intend to use the remainder of the net proceeds for working capital and general corporate purposes, including, but not limited to, the funding of acquisitions, repayment of other short-term and long-term debt and the repurchase of our common stock pursuant to our share repurchase program.

On January 15, 2025, we repaid, at maturity, the $ 1,250 outstanding balance of our 2.375 % senior unsecured notes.

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On February 8, 2023, we issued $ 500 aggregate principal amount of 4.900 % Notes due 2026 (the “2026 Notes”), $ 1,000 aggregate principal amount of 4.750 % Notes due 2033 (the “2033 Notes”) and $ 1,100 aggregate principal amount of 5.125 % Notes due 2053 (the “2053 Notes”) under our shelf registration statement.

Interest on the 2026 Notes is payable semi-annually in arrears on February 8 and August 8 of each year, commencing August 8, 2023.

Interest on the 2026 Notes was payable semi-annually in arrears on February 8 and August 8 of each year, commencing August 8, 2023.

Interest on the 2033 Notes and 2053 Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing August 15, 2023.

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On March 15, 2023, we repaid, at maturity, the $ 500 outstanding balance of our 0.450 % senior unsecured notes.

On December 1, 2022, we repaid, at maturity, the $ 750 outstanding balance of our 2.950 % senior unsecured notes.

On November 4, 2022, we issued $ 400 aggregate principal amount of 5.350 % Notes due 2025, $ 650 aggregate principal amount of 5.500 % Notes due 2032 and $ 750 aggregate principal amount of 6.100 % Notes due 2052 under our shelf registration statement.

Interest on these notes is payable semi-annually in arrears on April 15 and October 15 of each year, commencing April 15, 2023.

We used the net proceeds for working capital and general corporate purposes, such as the funding of acquisitions, repayment of short-term and long-term debt and the repurchase of our common stock pursuant to our share repurchase program.

On May 16, 2022, we repaid, at maturity, the $ 850 outstanding balance of our 3.125 % senior unsecured notes.

On April 29, 2022, we issued $ 600 aggregate principal amount of 4.100 % Notes due 2032 and $ 700 aggregate principal amount of 4.550 % Notes due 2052 under our shelf registration statement.

Interest on these notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing November 15, 2022.

We used the net proceeds for working

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

capital and general corporate purposes, such as the funding of acquisitions, repayment of short-term and long-term debt and the repurchase of our common stock pursuant to our share repurchase program.

Convertible Debentures

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We elected to settle the excess of the principal amount of the conversions with cash for total payments during the three months ended March 31, 2023 of $ 404 .

During the year ended December 31, 2022, $ 41 aggregate principal amount of the Debentures was surrendered for conversion by certain holders in accordance with the terms and provisions of the Indenture.

We elected to settle the excess of the principal amount of the conversion with cash for total payments of $ 299 .

We recognized $ 2 of interest expense related to the Debentures during 2022.

Interest paid on our total outstanding debt during 2025, 2024 and 2023 was $ 1,410 , $ 1,239 , and $ 1,032 , respectively.

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Regulatory Agencies, the U.S.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Attorney General and subcommittees of the U.S.

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Any liability that may result from any one of these government actions individually, or in the aggregate, could have a material adverse effect on our consolidated financial position or results of operations.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Blue Cross Blue Shield Antitrust Litigation

We are a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA and Blue Cross and/or Blue Shield licensees (the “Blue plans”) across the country.

Cases filed in twenty-eight states were consolidated into a single, multi-district proceeding captioned In re Blue Cross Blue Shield Antitrust Litigation that is pending in the U.S.

We have been a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA and Blue Cross and/or Blue Shield licensees (the “Blue plans”) across the country.

These cases were consolidated into a single, multi-district proceeding captioned In re Blue Cross Blue Shield Antitrust Litigation that is pending in the U.S.

District Court for the Northern District of Alabama (the “Court”).

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The cases were brought by two putative nationwide classes of plaintiffs, health plan subscribers and providers.

The BCBSA and Blue plans approved a settlement agreement and release with the subscriber plaintiffs (the “Subscriber Settlement Agreement”), which agreement required the Court’s approval to become effective.

The Subscriber Settlement Agreement requires the defendants to make a monetary settlement payment and contains certain terms imposing non-monetary obligations including (i) eliminating the “national best efforts” rule in the BCBSA license agreements (which rule limits the percentage of non-Blue revenue permitted for each Blue plan) and (ii) allowing for some large national employers with self-funded benefit plans to request a bid for insurance coverage from a second Blue plan in addition to the local Blue plan.

In November 2020, the Court issued an order preliminarily approving the Subscriber Settlement Agreement, following which members of the subscriber class were provided notice of the Subscriber Settlement Agreement and an opportunity to opt out of the class.

A small number of subscribers submitted valid opt-outs by the opt-out deadline.

In August 2022, the Court issued a final order approving the Subscriber Settlement Agreement (the “Final Approval Order”).

The Court amended its Final Approval Order in September 2022, further clarifying the injunctive relief that may be available to subscribers who submitted valid opt-outs .

The ultimate amount paid by us under the Subscriber Settlement Agreement was $ 604 .

Four notices of appeal of the Final Approval Order were heard by a panel of the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”) in September 2023, and the Eleventh Circuit affirmed the Court’s Final Approval Order approving the Subscriber Settlement Agreement in October 2023.

Petitions for rehearing were filed by certain appellants in November 2023 and December 2023 and were denied in January 2024.

As a result, the Eleventh Circuit issued a mandate terminating the jurisdiction of the Eleventh Circuit in February 2024.

In March 2024, Home Depot, one of the appellants, filed a petition for certiorari to the United States Supreme Court (the “Supreme Court”).

On the respondents' request, the Supreme Court granted an extension to respond until May 2024.

In April 2024, David Behenna, another appellant, filed a petition for certiorari to the Supreme Court, and the defendants and the subscriber plaintiffs filed briefs in opposition in May 2024.

In June 2024, the Supreme Court declined to grant certiorari, exhausting all appellate rights.

The BCBSA and Blue plans approved a settlement agreement and release with the subscriber plaintiffs (the “Subscriber Settlement Agreement”), which received final approval from the Court in September 2022.

The ultimate amount paid by the Company under the Subscriber Settlement Agreement was $ 604 , which was primarily accrued in 2020.

The Subscriber Settlement Agreement and the defendants' payment and non-monetary obligations under the Subscriber Settlement Agreement became effective in June 2024, with the request for second Blue plan bid provisions effective in September 2024.

T he funds held in escrow will be distributed in accordance with the Subscriber Settlement Agreement.

A number of follow-on cases involving entities that opted out of the Subscriber Settlement Agreement have been filed.

The funds held in escrow will be distributed to members of the subscriber class in accordance with the Subscriber Settlement Agreement.

A number of follow-on cases involving entities that opted out of the Subscriber Settlement Agreement have been filed and remain pending.

Those actions are:

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Blue Cross Blue Shield Association, et al.

2:22-cv-00261-RDP (N.D.

1:21-cv-23448 (S.D.

and VHS Liquidating Trust v.

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In February 2023, the Court denied the defendants’ motion to dismiss based on a statute of limitations defense in Alaska Air and Jet Blue .

In September 2023, the California court presiding over the VHS case, upheld its prior order granting in part defendants’ motion to strike based on the statute of

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

In September 2023, the California court presiding over the VHS case upheld its prior order granting in part defendants’ motion to strike based on the statute of limitations.

On February 14, 2025, the VHS plaintiffs amended their complaint to add an additional plaintiff, Children's Hospital of Los Angeles.

We intend to continue to vigorously defend these follow-on cases, which we believe are without merit;

however, their ultimate outcome cannot be presently determined.

In October 2020, after the Court lifted the stay as to the provider litigation, provider plaintiffs filed a renewed motion for class certification, which defendants opposed.

In March 2021, the Court issued an order terminating the pending motion for class certification until the Court determined the standard of review applicable to the providers’ claims.

In response to that order, the parties filed renewed standard of review motions, and in June 2021, the parties filed summary judgment motions not critically dependent on class certification.

In February 2022, the Court issued orders (i) granting certain defendants’ motion for partial summary judgment against the provider plaintiffs who had previously released claims against such defendants, and (ii) granting the provider plaintiffs’ motion for partial summary judgment, determining that Ohio v.

American Express Co .

does not affect the standard of review in this case.

In August 2022, the Court issued orders (i) granting in part the defendants’ motion regarding the antitrust standard of review, holding that for the period of time after the elimination of the “national best efforts” rule, the rule of reason applies to the provider plaintiffs’ market allocation conspiracy claims, and (ii) denying the provider plaintiffs’ motion for partial summary judgment on the standard of review, reaffirming its prior holding that the provider groups’ boycott claims are subject to the rule of reason.

In December 2023, the Court denied defendants’ motion for summary judgment on providers’ damage claims as time-barred and speculative and provider plaintiffs’ motion for partial summary judgment on the defendants’ single entity defense due to the existence of genuine issues of material fact.

In January 2024, the Court issued orders (i) denying defendants’ motion for summary judgment on (a) all claims by certain hospital providers and (b) any claims based on the Blue system's rules other than exclusive serviced areas or BlueCard and (ii) denying provider plaintiffs’ motion for partial summary judgment on defendants’ common law trademark claims.

In the third quarter of 2024, the BCBSA, along with the individually named Blue plans approved a settlement agreement and release (the “Provider Settlement Agreement”) with the provider plaintiffs, and in October 2024 the provider plaintiffs filed a motion for preliminary approval with the Court.

The Court granted preliminary approval of the provider settlement on December 4, 2024.

If finally approved by the Court, the Provider Settlement Agreement will require the defendants to make a monetary settlement payment, our portion of which is estimated to be $ 666 , and will contain certain non-monetary terms including (i) expansion of certain opportunities to contract with providers in contiguous service areas, (ii) certain prompt pay commitments, and (iii) various technological enhancements to the BlueCard program.

We recognized our estimated payment obligation under the Provider Settlement Agreement of $ 666 in September 2024.

We recognized this estimated payment obligation as operating expense in the Corporate & Other segment (see Note 20, “Segment Information”).

Express Scripts, Inc.

Pharmacy Benefit Management Litigation

In March 2016, we filed a lawsuit against Express Scripts, Inc.

(“Express Scripts”), our vendor at the time for pharmacy benefit management services, captioned Anthem, Inc.

Express Scripts, Inc.

, in the U.S.

District Court for the Southern District of New York (the “District Court”).

The lawsuit sought to recover over $ 14,800 in damages for pharmacy pricing that is higher than competitive benchmark pricing under the agreement between the parties (the “ESI Agreement”), over $ 158 in damages related to operational breaches, as well as various declarations under the ESI Agreement, including that Express Scripts:

(i) breached its obligation to negotiate in good faith and to agree in writing to new pricing terms (the “Pricing Claim”);

(ii) was required to provide competitive benchmark pricing to us through the term of the ESI Agreement;

(iii) has breached the ESI Agreement;

and (iv) is required under the ESI Agreement to provide post-termination services, at competitive benchmark pricing, for one year following any termination.

Express Scripts disputed our contractual claims and it sought declaratory judgments:

(i) regarding the timing of the periodic pricing review under the ESI Agreement, and (ii) that it has no obligation to ensure that we receive any specific level of pricing, that we have no contractual right to any change in pricing under the ESI Agreement and that its sole obligation is to negotiate proposed pricing terms in good faith.

In the alternative, Express Scripts claimed that we have been unjustly enriched by its payment of $ 4,675 at the time we entered into the ESI Agreement.

In March 2017, the District Court granted our motion to dismiss Express Scripts’ counterclaims for (i) breach of the implied covenant of good faith and fair dealing, and (ii) unjust enrichment with prejudice.

After such ruling, Express Scripts’ only remaining claims were for breach of contract and declaratory relief.

In August 2021, Express Scripts filed a motion for summary judgment, which we opposed.

In March 2022, the District Court granted in part and denied in part Express Scripts’ motion for summary judgment.

The District Court dismissed our declaratory judgment claim, our breach of contract claim for failure to prove damages and most of our operational breach claims.

As a result of the summary judgment decision, only two claims remained.

Express Scripts filed a second motion for summary judgment in June 2022, challenging our remaining operational breach claims, which the

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

District Court denied in March 2023.

In November 2023, the District Court issued a final judgment ending the lawsuit in the District Court after the parties settled and stipulated to dismiss the only remaining claim that had not been disposed of by the court order or stipulation.

In December 2023, we filed a notice of appeal with the United States Court of Appeals for the Second Circuit (the “Second Circuit”), regarding the Pricing Claim.

Mediation ordered by the Second Circuit occurred in March 2024 and was unsuccessful.

Oral argument before the Second Circuit was held in October 2024.

In November 2024, the Court affirmed the trial court's decision dismissing the case.

A motion for rehearing was submitted which was denied.

The matter is now closed.

A Final Fairness Hearing was held in July 2025, and a Final Order of Approval was issued in August 2025.

As a result of the Final Order of Approval, the defendants were required to make a monetary settlement payment and certain non-monetary terms including (i) expansion of certain opportunities to contract with providers in contiguous service areas, (ii) certain prompt pay commitments, and (iii) various technological enhancements to the BlueCard program are now being implemented on a timeline set forth in the Provider Settlement Agreement.

The effective date of the Provider Settlement Agreement was September 19, 2025.

We recognized our payment obligation under the Provider Settlement Agreement of $ 666 in September 2024 as operating expense in the Corporate & Other segment (see Note 20, “Segment Information”).

A number of follow-on cases involving entities that opted out of the Provider Settlement Agreement have been filed and have been centralized in the BCBSA Litigation multi-district proceeding.

We intend to continue to vigorously defend these provider follow-on cases, which we believe are without merit;

however, their ultimate outcome cannot be presently determined.

Medicare Risk Adjustment Litigation

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Department of Justice (“DOJ”) filed a civil lawsuit against Elevance Health, Inc.

in the District Court in a case captioned United States v.

District Court for the Southern District of New York (the “District Court”) in a case captioned United States v.

Anthem, Inc .

The DOJ’s suit alleges, among other things, that we falsely certified the accuracy of the diagnosis data we submitted to the Centers for Medicare and Medicaid Services (“CMS”) for risk-adjustment purposes under Medicare Part C and knowingly failed to delete inaccurate diagnosis codes.

The DOJ further alleges that, as a result of these purported acts, we caused CMS to calculate the risk-adjustment payments based on inaccurate diagnosis information, which enabled us to obtain unspecified amounts of payments in Medicare funds in violation of the False Claims Act.

The DOJ’s suit alleges, among other things, that we falsely certified the accuracy of the diagnosis data we submitted to the Centers for Medicare & Medicaid Services (“CMS”) for risk-adjustment purposes under Medicare Part C and knowingly failed to delete inaccurate diagnosis codes.

The DOJ further alleges that, as a result of these purported acts, we caused CMS

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

to calculate the risk-adjustment payments based on inaccurate diagnosis information, which enabled us to obtain unspecified amounts of payments in Medicare funds in violation of the False Claims Act.

The DOJ filed an amended complaint in July 2020, alleging the same causes of action but revising some of its factual allegations.

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In November 2022, we filed an answer.

In March 2023, discovery commenced, and an initial case management conference was held in April 2023.

Fact discovery is ongoing.

In December 2024, the District Court issued a scheduling order setting the deadlines for the completion of fact discovery in August 2025 and April 2026 for the completion of expert discovery.

In March 2023, discovery commenced.

Fact and expert discovery are ongoing with current completion deadlines of June 30, 2026 and March 8, 2027, respectively.

We intend to continue to vigorously defend this suit, which we believe is without merit;

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The comprehensive pharmacy services portfolio includes all core pharmacy services, such as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database and member services.

CarelonRx delegates certain core pharmacy services to CVS, pursuant to the CVS Agreement, with the current contractual term extending through December 31, 2027.

CarelonRx delegates certain core pharmacy services to CaremarkPCS Health, L.L.C.

(“CVS”), which is a subsidiary of CVS Health Corporation, pursuant to an agreement (“CVS Agreement”), with the current contractual term extending through December 31, 2027.

We can elect to have CVS continue to provide services to us for a three-year extension period on the same terms and conditions as in the current CVS Agreement in the event of a termination or non-renewal by either party.

We have financial guarantees related to standby letters of credit and surety bonds related to certain contractual commitments, which totaled $ 819 as of December 31, 2025.

We do not believe such obligations will materially affect its financial position, results of operations, or cash flows.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The Company has unfunded loan commitments to certain equity investees of $ 501 at December 31, 2024.

The Company does not believe such obligations will materially affect its financial position, results of operations, or cash flows.

Vulnerability from Concentrations

We do not believe such obligations will materially affect our financial position, results of operations, or cash flows.

We have unfunded loan commitments to certain equity investees of $ 401 at December 31, 2025.

We do not believe such obligations will materially affect our financial position, results of operations, or cash flows.

Vulnerability Concentrations

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, investment securities, premium receivables and instruments held through hedging activities.

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As of December 31, 2025, there were no significant concentrations of financial instruments in a single investee, industry or geographic location.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Capital Stock

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Restricted stock or restricted stock units with performance measures vest in three-year installments.

Performance units issued in 2024 will vest in 2027, based on certain revenue and earnings targets over the three-year period of 2024 to 2026.

Performance units issued in 2023 will vest in 2026, based on certain revenue and earnings targets over the three-year period of 2023 to 2025.

Performance units issued in 2022 will vest in 2025, based on certain revenue and earnings targets over the three-year period of 2022 to 2024.

Performance units issued in 2025 will vest in 2028, based on certain revenue and earnings targets over the three-year period of 2025 through 2027.

Performance units issued in 2024 will vest in 2027, based on certain revenue and earnings targets over the three-year period of 2024 through 2026.

Performance units issued in 2023 will vest in 2026, based on certain revenue and earnings targets over the three-year period of 2023 through 2025.

For the years ended December 31, 2025, 2024 and 2023, we recognized share-based compensation expense of $ 276 , $ 191 and $ 289 , respectively, as well as related tax benefits of $ 62 , $ 47 and $ 73 , respectively.

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Exercisable at December 31, 2025 2.0 343.88 4.33 $ 106

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 amounted to $ 38 , $ 123 and $ 69 , respectively.

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The total fair value of restricted stock awards that vested during the years ended December 31, 2025, 2024 and 2023 was $ 158 , $ 298 and $ 285 , respectively.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the year ended December 31, 2025 is as follows:

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Nonvested at December 31, 2025 1.1 437.32

During the year ended December 31, 2024, we granted approximately 0.2 restricted stock units that are contingent upon us achieving certain revenue and earnings targets over the three-year period of 2024 to 2026.

During the year ended December 31, 2025, we granted approximately 0.3 restricted stock units that are contingent upon us achieving certain revenue and earnings targets over the three-year period of 2025 through 2027.

These grants have been included in the activity shown above, but will be subject to adjustment at the end of 2027, based on results in the three-year period.

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Weighted-average expected life (years) 4.45 4.40 4.40

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The following weighted-average fair values per share were determined for the years ended December 31, 2025, 2024 and 2023:

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The binomial lattice option-pricing model requires the input of subjective assumptions including the expected stock price volatility.

Because our stock option grants have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, existing models do not necessarily provide a reliable single measure of the fair value of our stock option grants.

Because our stock option grants have characteristics significantly different from those of traded options, and

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, existing models do not necessarily provide a reliable single measure of the fair value of our stock option grants.

Employee Stock Purchase Plan

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The Stock Purchase Plan allows participants to purchase shares of our common stock at a discounted price per share of 90 % of the fair value of a share of common stock on the lower of the first or last trading day of the plan quarter purchase period.

The Stock Purchase Plan discount was recognized as compensation expense for the year ended December 31, 2024, based on GAAP guidance.

The Stock Purchase Plan discount recognized as compensation expense for the years ended December 31, 2025, 2024, and 2023 was $ 11 , $ 10 and $ 8 , respectively, based on GAAP guidance.

During the years ended December 31, 2025, 2024 and 2023, we issued 0.2 , 0.2 and 0.1 shares, respectively, under the Stock Purchase Plan, and we received cash of $ 57 , $ 65 and $ 65 , respectively, for such shares.

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This quarterly dividend is payable on March 25, 2026 to the shareholders of record as of March 10, 2026.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Under our Board of Directors’ authorization, we maintain a common stock repurchase program.

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Our stock repurchase program is discretionary, as we are under no obligation to repurchase shares.

We repurchase shares under the program when we believe it is a prudent use of capital.

We repurchase shares under the program when we believe it is a prudent use of

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The excess cost of the repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings.

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Average price per share $ 350.39 $ 435.32

Aggregate cost $ 2,900 $ 2,676

Aggregate cost - excluding excise tax

$ 2,605 $ 2,900

Authorization remaining at end of year $ 6,695 $ 9,300

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Notes to Consolidated Financial Statements (continued)

Accumulated Other Comprehensive (Loss) Income

A reconciliation of the components of accumulated other comprehensive (loss) income at December 31, 2024, 2023, and 2022 is as follows:

Accumulated Other Comprehensive Income (Loss)

A reconciliation of the components of accumulated other comprehensive income (loss) included in total shareholders' equity at December 31, 2025, 2024, and 2023 is as follows:

2025 2024 2023

Net unrealized investment gains:

Net unrealized investment gains (losses):

Beginning of year balance ($ 523 ) ($ 632 ) ($ 1,755 )

Other comprehensive (loss) income before reclassifications, net of tax benefit (expense) of $ 44 , $( 218 ), and $ 926 , respectively

Other comprehensive income (loss), before reclassifications, net of tax benefit (expense) of ($ 163 ), $ 44 , and ($ 218 ), respectively

530 ( 153 ) 760

Amounts reclassified from accumulated other comprehensive income, net of tax expense of $( 82 ), $( 113 ), and $( 94 ), respectively

Other comprehensive income (loss)

Amounts reclassified from accumulated other comprehensive income, net of tax benefit (expense) of ($ 31 ), ($ 82 ), and ($ 113 ), respectively

Other comprehensive income

633 103 1,117

Other comprehensive income attributable to noncontrolling interests, net of tax benefit (expense) of $ 1 , $ 1 , and $( 3 ), respectively

Other comprehensive (income) loss attributable to noncontrolling interests, net of tax (benefit) expense of $ — , ($ 1 ), and ($ 1 ), respectively

End of year balance 106 ( 523 ) ( 632 )

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Beginning of year balance ( 2 ) ( 3 ) ( 3 )

Other comprehensive income (loss), net of tax expense of $( 1 ), $ 0 , and $ 0 , respectively

Other comprehensive income (loss), net of tax benefit (expense) of $ 1 , ($ 1 ), and $ — , respectively

End of year balance ( 3 ) ( 2 ) ( 3 )

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Beginning of year balance ( 207 ) ( 211 ) ( 229 )

Other comprehensive income, net of tax benefit (expense) of $( 4 ), $ 6 , and $( 6 ), respectively

Other comprehensive income (loss), net of tax benefit (expense) of ($ 4 ), ($ 4 ), and $ 6 , respectively

End of year balance ( 199 ) ( 207 ) ( 211 )

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Beginning of year balance ( 399 ) ( 459 ) ( 499 )

Other comprehensive income (loss), net of tax expense of $ 0 , $( 39 ), and $( 23 ), respectively

Other comprehensive income (loss), net of tax benefit (expense) of ($ 16 ), $ — , and ($ 39 ), respectively

End of year balance ( 332 ) ( 399 ) ( 459 )

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Beginning of year balance 8 10 13

Other comprehensive (loss) income, net of tax benefit (expense) of $ 1 , $ 1 , and $( 10 ), respectively

Other comprehensive income (loss), net of tax benefit (expense) of $ 1 , $ 1 , and $ 1 , respectively

( 3 ) ( 2 ) ( 3 )

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Beginning of year balance ( 24 ) ( 18 ) ( 17 )

Other comprehensive loss, net of tax benefit of $ 0 , $ 1 , and $ 6

Other comprehensive income (loss), net of tax benefit (expense) of $ — , $ — , and $ 1

( 4 ) ( 6 ) ( 1 )

End of year balance ( 28 ) ( 24 ) ( 18 )

Total beginning of year accumulated other comprehensive loss

Total beginning of year accumulated other comprehensive income (loss)

( 1,147 ) ( 1,313 ) ( 2,490 )

Total other comprehensive income (loss), net of tax benefit (expense) of $( 42 ), $( 362 ), and $ 799 , respectively

Total other comprehensive income, net of tax benefit (expense) of ($ 212 ), ($ 42 ), and ($ 362 ), respectively

700 160 1,171

Total other comprehensive income attributable to noncontrolling interests, net of tax benefit (expense) of $ 1 , $ 1 , and $( 3 ), respectively

Total end of year accumulated other comprehensive loss

Total other comprehensive (income) loss attributable to noncontrolling interests, net of tax (benefit) expense of $ — , ($ 1 ), and ($ 1 ), respectively

Total end of year accumulated other comprehensive income (loss)

($ 451 ) ($ 1,147 ) ($ 1,313 )

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

We reinsure certain risks with other companies and assume risk from other companies.

We remain primarily liable to policyholders under ceded insurance contracts and are contingently liable for amounts recoverable from reinsurers in the event that such reinsurers do not meet their contractual obligations.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

A summary of direct, assumed and ceded premiums earned for the years ended December 31, 2025, 2024 and 2023 is as follows:

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The difference between written premiums and earned premiums is immaterial in each of the years presented above.

A summary of net premiums earned by segment (see Note 20, “Segment Information”) for the years ended December 31, 2024, 2023 and 2022 is as follows:

2024 2023 2022

Reportable segments:

Health Benefits $ 142,668 $ 141,515 $ 131,964

Carelon Services 2,630 1,679 1,499

Eliminations ( 1,132 ) ( 340 ) ( 234 )

Net premiums $ 144,166 $ 142,854 $ 133,229

All assumed and ceded activity reflected in the table above relates to our Health Benefits reportable segment.

The effect of reinsurance on benefit expense for the years ended December 31, 2025, 2024 and 2023 is as follows:

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Lease liabilities, noncurrent Other noncurrent liabilities $ 529 $ 658

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Years Ended December 31

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Total lease expense $ 153 $ 188 $ 193

Our activities as disclosed in Note 4, “Business Optimization Initiatives,” include reducing our office space footprint.

As a result, we performed an interim impairment test during the years ended December 31, 2024, 2023 and 2022, and recorded impairment charges of $ 17 , $ 23 and $ 34 , respectively, for impairment and abandonment of ROU assets which are included in the operating lease expense shown above.

During the years ended December 31, 2025, 2024 and 2023, we reduced our office space footprint and concurrently performed an interim impairment test for related ROU assets.

We recorded impairment charges of $ 7 , $ 17 and $ 23 , respectively, for impairment and abandonment of ROU assets which are included in the operating lease expense shown above.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Years Ended December 31

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ROU assets obtained in exchange for new lease liabilities, operating leases 33 63

ROU assets derecognized (terminations/modifications)

$ ( 75 ) $ ( 19 )

Weighted average remaining lease term in years, operating leases 6 6

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During the years ended December 31, 2025, 2024 and 2023, weighted-average shares related to certain stock options of 1.9 , 0.7 and 0.8 , respectively, were excluded from the denominator for diluted shareholders’ earnings per share because the stock options were anti-dilutive.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

During each of the years ended December 31, 2024, 2023 and 2022, we issued approximately 0.2 restricted stock units, of which vesting was contingent upon us meeting certain earnings targets.

We have issued approximately 0.7 cumulative restricted stock units under our stock incentive plans, of which vesting is contingent upon us meeting specified annual earnings targets.

Contingent restricted stock units are excluded from the denominator for diluted shareholders’ earnings per share and are included only if and when the contingency is met.

The 2024 contingent restricted stock units are being measured over the three-year period of 2024 through 2026, the 2023 contingent restricted stock units are being measured over the three-year period of 2023 through 2025 and the 2022 contingent restricted stock units are being measured over the three year period of 2022 through 2024.

Contingent restricted stock units generally vest in March of the year following each measurement period.

These contingent restricted stock units are being measured over a three-year period and generally vest in March of the year following each measurement period.

Segment Information

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and Puerto Rico.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Our Health Benefits segment offers a comprehensive suite of health plans and services to our Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid and FEP ® members.

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The majority of these revenues are contained in our Health Benefits segment.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

The accounting policies of the segments are consistent with those described in the summary of significant accounting policies in Note 2, “Basis of Presentation and Significant Accounting Policies,” except that all capitation risk arrangements are reported on a gross basis with an adjustment included in eliminations for capitated risk arrangements that are presented on a net basis under GAAP.

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Reportable segments’ operating gain $ 7,199 $ 7,862 $ 8,499

Related Party Transactions

We have an equity investment in APC Passe, LLC, which offers Medicaid products in Arkansas.

During the years ended December 31, 2024, 2023 and 2022, in the normal course of business, we assumed premiums of $ 490 , $ 481 and $ 501 , respectively, from APC Passe, LLC, which is included in our total assumed premiums (see Note 17, “Reinsurance”).

In January 2023, we made an equity investment that resulted in our minority interest ownership of Liberty Dental.

During the years ended December 31, 2024 and 2023, in the normal course of business, Liberty Dental provided administrative services to our Medicare Advantage members under a capitated arrangement amounting to $ 519 and $ 426 , respectively, reported in benefit expense.

Statutory Information

The majority of our insurance and HMO subsidiaries report their accounts in conformity with accounting practices prescribed or permitted by state insurance regulatory authorities, commonly referred to as statutory accounting, which vary in certain respects from GAAP.

However, certain of our insurance and HMO subsidiaries, including Blue Cross of California, Blue Cross of California Partnership Plan, Inc., Carelon Behavioral Health of California, Inc.

and Carelon Health of California, Inc.

However, certain of our insurance and HMO subsidiaries, including Blue Cross of California, Blue Cross of California Partnership Plan, Inc.

and Carelon Behavioral Health of California, Inc.

are regulated by the California Department of Managed Health Care (“DMHC”) and report their accounts in conformity with GAAP (these entities are collectively referred to as the “DMHC regulated entities”).

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The formula for determining the amount of RBC specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity.

Below minimum RBC requirements are classified within certain levels, each of

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

which requires specified corrective action.

Below minimum RBC requirements are classified within certain levels, each of which requires specified corrective action.

Additionally, the DMHC regulated entities are subject to capital and solvency requirements as prescribed by the DMHC.

As of December 31, 2025 and 2024, all of our regulated subsidiaries exceeded the minimum applicable mandatory RBC requirements and/or capital and solvency requirements of their applicable governmental regulator.

The statutory RBC necessary to satisfy regulatory requirements of our statutory basis insurance and HMO subsidiaries was approximately $ 8,100 and $ 7,800 as of December 31, 2024 and 2023, respectively.

The tangible net equity required for the DMHC regulated entities was approximately $ 970 and $ 950 as of December 31, 2024 and 2023, respectively.

Statutory-basis capital and surplus of our insurance and HMO subsidiaries and capital and surplus of our other regulated subsidiaries, excluding the DMHC regulated entities, was $ 18,668 and $ 19,808 at December 31, 2024 and 2023, respectively.

GAAP equity of the DMHC regulated entities was $ 3,817 and $ 3,975 at December 31, 2024 and 2023, respectively.

The statutory RBC necessary to satisfy regulatory requirements of our statutory basis insurance and HMO subsidiaries was approximately $ 9,100 as of December 31, 2025.

The tangible net equity required for the DMHC regulated entities was approximately $ 1,100 as of December 31, 2025.

GAAP equity of the DMHC regulated entities was $ 2,969 at December 31, 2025.

Elevance Health, Inc.

Notes to Consolidated Financial Statements (continued)

Our ability to pay dividends and credit obligations is significantly dependent on receipt of dividends from our subsidiaries.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data