Felicia Norwood: Good morning, George. It’s Felicia Norwood. If we take a look at the risk model changes for 2024, they certainly were an integral part of our strategy as we thought about our bid process. But let me start by saying that we feel good about our bids for 2024. I believe when we step back and take a look at where we are, we continue to recognize the importance of stability in our offerings to seniors. And I think that we have submitted bids that take into consideration both the risk model changes as well as the importance of having those benefits that are critical to seniors as we go forward. It’s always going to be a very highly competitive environment in Medicare Advantage. We always expect that. But from our perspective, this is something that we’ve had the opportunity to be very thoughtful about.
And as we put our bids together each year, we’re always taking a very balanced approach between our aspirations for growth as well as with respect to margins. And I think that we have landed in a place where we’re going to be offering attractive plans for our seniors that provide sustainable economics for us for the long term. So thank you very much for the question.
Gail Boudreaux: Thank you. Next question, please.
Operator: Next, we’ll go to the line of Lisa Gill from JPMorgan. Please go ahead.
Lisa Gill: Thanks very much and good morning. I just want to go back to a comment that John made. And that’s around higher cost if COVID never happened. And so, one, I just want to understand, is there a pent-up demand because of COVID? Is that the reason for that comment? And then secondly, both at your Analyst Day and I think at another conference, you called out GLP-1s is running higher. Can you maybe just put that into perspective for us as to how much that can add to a medical cost trend? And does that benefit your pharmacy side of your benefit business as you see that higher utilization?
John Gallina: Thanks for the question, Lisa, and good morning. Yeah, associated with trends and COVID existing versus not existing and what the baseline might have been, it’s really not a lot of pent-up demand for care. There certainly can be small pockets of that. But in general, the healthcare system was pretty much open for business quite significantly in 2022. There may have been some staffing shortages that impacted that ever so slightly, but not all that significantly, we don’t believe. And we just think that it’s really — it’s an overall increasing in cost structure. COVID is not gone. It still exists. It’s just no longer the big significant driving force that it had been for the past several years. And so as we look at things in total, we see a higher cost structure in general.
And then associated with GLP-1 drugs, that is one element of a multitude of elements as part of an overall trend conversation. And as I said, trend overall is consistent with our expectation. So we feel very good about that. And can there be an upside on CarelonRx? Well, certainly a small one, but not enough to really change the trajectory at this point. So thank you for the questions.
Gail Boudreaux: Next question please.
Operator: Next, we’ll go to the line of Kevin Fischbeck from Bank of America. Please go ahead.
