Kevin Fischbeck: Great, thanks. I appreciate the comments about liquidity for this year. Is there some way to think about how the company’s cash burn looks like relative to an EBITDA number, so if you’re going lose $150 million, what does that mean just as a kind of rule of thumb as far as how much cash we expect you to go through?
Scott J. Leffler: Generally, I would say that our cash burn largely approximates our EBITDA performance. This is the important caveat that the working capital cycle for the Non-Insurance line of business is kind of disconnected from the P&L by several quarters. And so the performance of the Non-Insurance payment business in 2022, you’d expect to see the cash effect of that. We were expecting to see that in Q3 of 2023 when we expect to settle on the 2022 performance.
Kevin Fischbeck: Okay, that makes sense. And then I guess maybe just going back to the comment about the MA rate and the coding dynamics, I understand you guys have a more integrated coding, sophistication and that the physicians are actually doing the coding and actually intervening around the coding that they’re documenting. But it still would feel to me like any change around how much CMS is paying for coding would still potentially at least have a disproportionate impact you guys because you are good at documenting everything and you made it sound like if the industry was to see a 3% headway from this then maybe Clover would see less, am I interpreting that correctly or are you saying that even if it is a bigger impact you wouldn’t change the way that you run your business?
Andrew Toy: Yeah. It is a great question there. A slightly different version than either the ones you just said, but good query. I think what we’re saying is we’re certainly impacted because there’s a lot of places where the rules have changed. there’s a lot of adjustments. However, we feel like overall, because we have Clover Assistant, we’ve always been focused on the diagnosis where there’s also care management involved, which is the spirit of what CMS is doing. And so we feel pretty good about that. If you look at some of the I think impact that are just coming out from other plans, maybe risk bearing providers, we think they are significantly more impacted than what is in their CMS projection, significantly more and that’s because there just has been somewhat of a prevalence of we believe I’m coding for diagnosis that may not impact the cost of care just like CMS.
So any provider or plan which is getting a disproportionate number of those diagnosis what we believe would be significantly more impacted than what’s inside the CMS projections. I think that’s what we were trying to say.
Kevin Fischbeck: Okay, but do you think you’re more or less than the industry?
Andrew Toy: We think we’re better than — we’re going to be better than industry. We obviously don’t know what’s in every other plan. But we do know sort of like when you look at plans who are heavily delegated downstream to some of these providers. If you’re heavily dedicated to a provider downstream and we do very little delegation because we rely on Clover Assistant, a lot of those downstream delegated risk bearing providers will be those likely who are doing more of that other kind of coding. So plans that are reliant on those kinds of services or those kinds of contracts will probably have to redo those contracts or we’ll have some of those impacts flow upstream. So we do believe that we are less impacted, but we’re not saying that we are not impacted.
But because MA is a relative business what that means is that as we all go out to bid, we are all looking at our future performance. We believe that that relative performance and advantage relative to other plans will likely bear out such that we can be probably have a bit of an advantage going forward.
Kevin Fischbeck: Alright, great. Thanks.
Operator: Thank you. . And at this time, we have no further questions in queue. I would like to turn the call back over to Andrew Toy for any additional or closing remarks.
Andrew Toy: Sure. Thanks. So, yeah, to close that I just want to reiterate that 2023 will certainly shape up to be a very pivotal year for our business. And we’re absolutely focused on delivering shareholder value as our priority. So for that value, we’ll deliver this by executing on our path to profitability. We’ve said that many times. We’re going to continue widening our technology mode and we just discussed why that’s so critical and helps us be resilient against changes that are coming into the industry, and of course by improving clinical outcomes for our members. So thank you everyone for joining us today. Look forward to updating you on our progression throughout the year.
Operator: This concludes today’s Clover Health’s fourth quarter and full year 2022 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.
