Operator: Actually, no. It’s not coming through well at all, sir. We’re not able to understand what you’re asking. Would you be able to reconnect or possibly reach out off-line. I apologize, we have to move on. We’re not able to hear what you’re saying. Our next question today comes from Calvin Sternick with JPMorgan.
Calvin Sternick: First, a quick clarification on MA. I think I heard a comment about lower disenrollment. Was that for this AEP? Or is that more of a go-forward comment? And then second, it sounds like MA has got a margin expansion beyond 2025. Just curious how you’re thinking about the overall level of membership growth once you start getting — you get past the STARS .
James Murray: This is Jim. I’ll take the first part of your question. We’ve been doing a lot during 2022 to address some of the issues that we’ve had with STARS. A big driver of some of our poor STARS results had been the customer complaints called CTMs and disenrollment. And we’re obviously — I like to look at things every day. We’re watching our CTMs and disenrollments for this past year, and the amount that we’re seeing is favorable to what we’ve seen in the past. And so a lot of the steps that we’ve taken during the course of ’22 seem to be bearing some fruit. Those results will — as Drew mentioned, STARS takes time, will favorably impact our 2026 revenue. We’re also in the process right now. CMS comes out with CAP surveys from March to May.
We’re in the process of doing a number of procedures that have never been done here before as a consolidated Centene to enhance our CAP scores as CMS does that survey. So there’s a lot of good things that are going on to positively impact where we think STARS will be in the future. I think when we were in New York together. We talked about 20% for 2025 being in 4-plus STAR plans, 20% of our membership. We want that to be at least 40% in ’26, and then we’re targeting 60% in ’27.
Operator: And ladies and gentlemen, our next question today comes from George Hill at Deutsche Bank.
George Hill: Drew, I just wanted to circle back on the idea that you sounded pretty bullish on the opportunity on the PBM transition. Just wanted to see if there were any changes to expectations or synergy targets as it relates to that.
Andrew Asher: No. My bullishness is ESI and Centene working together to deliver what we anticipated when we inked the deal a couple of months ago or a month or so ago. One more thing. Let me — on share buyback, let me clarify something that I said earlier. I was answering a 2024 question. The $3 billion is our placeholder for 2024. The 2023 back half of the year share buyback is about $1.5 billion. And that’s because we’ve got a little bit of trapped capital that we’ll have to get out over the following year or so. So the $3 billion I mentioned is the forecast for 2024, absent any acquisitions.
Operator: Thank you. And ladies and gentlemen, this does conclude today’s question-and-answer session. I’d like to turn the conference over to Sarah London for any closing remarks.
Sarah London: Thanks, Rocco, and thanks, everyone, for your time this morning. Please reach out to Jen with any follow-up questions, and we look forward to talking to you throughout the rest of the quarter.
Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.
