Michael Ha: I just wanted to ask a bit more about redeterminations and expectations. Appreciate all the color on the 30 bps of Medicaid MLR pressure in ’23. I recall hearing at your Investor Day that your state composite rate increase, improved about 50 bps. So I’m just curious, how did that compare to your original expectations? I think there’s originally been some concern that state rate increases may not go into effect until a couple of quarters after redeterminations were underway, but 50 bps improvement feels pretty strong, pretty positive, quite high. And I think — and if I think about the messaging around just most states expecting to complete redeterminations likely later in ’23, then in that scenario, you’re entering ’23 strong rate increase, couple that with a very slow rollout of redetermination. It seems like a recipe that could present some earnings upside this year. Is that a fair way to think about how redeterminations might develop?
Andrew Asher: Yes. So the composite rate that is embedded in our guidance as we — as you properly pointed out we disclosed at Investor Day is 1.4%. So I guess, yes, compared to a meager 0.9%, that is a big jump, but it’s still on an absolute basis, 1.4%. So think about that in context. But the reason why we are 0.9% relative to the 1.3% that we had baked into our 2022 guidance, Florida was a pretty big piece of that. We expect the recovery there this year as we demonstrate the need for rates. So that will be an ongoing process as we go through the rate cycles. Luckily, they’re distributed across the year. They’re not all stacked on 1/1, like the commercial business or the Medicare business. They do — we have slugs that renew throughout the year, which will help with the sloping of redeterminations as well.
Sarah London: Maybe just to add a little bit of color on the process. To your point about sort of the methodical approach that we were expecting, with the certainty of the year-end bill, we started to get updated information obviously from each 1 of our states and are — continue to be in regular contact with them. And I would say that in general, we are seeing that methodical approach hold with the vast majority of our states sitting in a 9- to 14-month bucket in terms of the time frame that they expect redetermine redeterminations to play out under, and some of them indicating that they won’t start April 1, they’ll start closer to summer time. So as you think about sort of the start date shift, overall, nothing that suggests overall slope line will shift materially.
And we are seeing continued positive momentum from our states and being open to and encouraging our support in outreach and communication education efforts to members. So in general, I feel like the industry is aligning and organizing around an approach that will minimize or seek to minimize member abrasion in the process and are allowing us to run alongside our state partners, all of which is positive from our perspective.
Operator: And our next question today comes from Scott Fidel with Stephens.
Scott Fidel: Wanted to just drill in a little bit more, especially given possibly the importance of the buybacks. Just if you can walk us through your updated sources and uses of cash for 2023 and how much you think you can have for deployable excess capital for buybacks. And then, Drew, I’m not sure if you’ve given us 2023 operating cash flow guidance yet. So if you do have that, I would appreciate that, too.
