agilon health, inc. (NYSE:AGL) Q4 2022 Earnings Call Transcript

Steve Sell: So Stephen I think my headline to you was that it’s manageable. It’s in that 3% range. And the reason is those levers I talked about. So getting more members on the platform earlier, the fact that we are doubling our MA membership from ’22 to ’24, that’s far greater than we would have told you a year ago. And then the year-over-year maturation that’s driven by earlier rollout of clinical programs, better quality, the diabetes research that I cited at the beginning where we’re 20% better than Medicare Advantage on a national basis in terms of total cost of care, go down the list of sort of complex patients, and we’re getting much better on that. And so — and I’m not even counting anything that might happen on the benefit side.

There’s a lot of dialogue that we have going with plans on that, that could be — there could be adjustments on benefits. And we have that discussion every year last couple of years has been about increasing benefits this year. And depending upon the market, it could be about, hey, are there places where we tune and reduce some of those benefits. But it’s a pretty normal cycle. And so I think — and then the starting point that we talked about, if you think about the year 1 markets being dilutive potentially at that adjusted EBITDA level, each incremental dollar we’re able to drive there by having a better implementation period really helps a lot.

Operator: And there are no further questions. I would like to hand the call back to the management team for any closing remarks.

Steve Sell : We’re obviously excited about our performance in ’22 and what’s ahead in ’23 and ’24. And we look forward to seeing all of you at the end of the month at our Investor Day here in New York. I think it’s going to be a great discussion. So see you then.

Operator: This concludes today’s call. Thank you, everyone, for joining. You may now disconnect.