Elevance Health faces a rise in Medicaid costs and reduces its earnings forecast for 2024.

Elevance Health, a big health insurance company, surprised everyone by saying they will make less money than they thought. This happened because more people needed Medicaid, and the money they get for Medicaid is not enough.

Medicaid is a program that helps people with low incomes pay for healthcare. Elevance is one of the biggest companies that manage Medicaid for different states.

During the pandemic, many people joined Medicaid. Now, states are checking who still qualifies, and many people are losing coverage.

This is a problem for Elevance because the people who are still on Medicaid need more healthcare. Elevance says the money they get from states for Medicaid is not enough to cover these costs.

As a result, Elevance's stock price went down a lot. Investors are worried that the company will not make as much money as they hoped.