Operator: Next, we’ll go to the line of Scott Fidel from Stephens. Please go ahead.
Scott Fidel: Hi, thanks. I was hoping first you could just maybe touch on the EPS split expected for 3Q versus 4Q. And then my main question is just sort of taking the discussion we’re having on the cost structure for medical costs in 2023, just interested in how you’re thinking about that rolling forward into 2024. We’re already starting to capture a lot of early data points on commercial premium pricing and it looks like the environment is hardening quite a bit in terms of pricing trends. And so just interested in how you’re sort of thinking about sort of pricing for cost trends for ’24? Thanks.
John Gallina: Yeah. Thanks for the question, and good morning. In terms of our EPS, guidance, as you know, we raised it to $32.85 or greater than $32.85. And I think that would assume that a little bit more than 56% of our earnings will have occurred in the first half of the year. So when you look at the last six months of the year, we are actually pretty comfortable with what the current consensus estimates have associated with the third quarter and with the seasonality that the current consensus estimates have inherent in it. And that is that the third quarter will be a bit more profitable than the fourth quarter which is very consistent with the typical seasonality of our business. And then for ‘24, as you know, it’s just really premature to go into a 2024 conversation at this time.
We’ll provide a lot more insights on that at the end of the year, a little bit more in the third quarter and a lot more at the end of the year and have a more robust conversation about 2024 at that time.
Gail Boudreaux: Yeah, thanks again for that question. And again on just your pricing question, we’ve got a very consistent approach to pricing and we’re going to keep that discipline as we project our forward view of cost. So I don’t think anything has changed though. There’s not a whole lot more that’s new, but we’re very disciplined about our projection and how we see that and that’s how we price to. So thanks for the question and next question.
Operator: Next, we’ll go to the line of Steven Valiquette from Barclays. Please go ahead.
Steven Valiquette: Thanks. Good morning. This was touched on a little bit with your comment though that commercial membership growth should re-accelerate in the back half of ‘23 and into ’24. Just curious if you could remind us whether or not that’s due almost all to the potential tailwinds for redetermination or are there other factors that are just — either such as a more favorable market dynamics related to low unemployment or any potential expectation of market share gains for Elevance for ‘24 that might help your commercial membership growth acceleration outlook? Thanks.
Gail Boudreaux: Sure. I’ll ask Morgan Kendrick, who leads Commercial business maybe to comment a little bit about commercial and what we’re seeing in the marketplace.
Morgan Kendrick: Yeah. Thanks for the question, Steve. Morgan here. I wanted to address — I’d say that our expectations for membership growth are in line with what we projected and discussed at other instances. One of the things that’s interesting though is we’re wrapping up our national cycle. And so that’s almost complete. One thing notably this year, it felt like the receipts were coming in slower or later and the actual decisions were made longer, which isn’t terribly inconsistent with what we see during an economic shift if you think of things and where the affordability really matters. Our local market right now, we’re just now getting into 4Q when we think about our business, and 3Q, 4Q and then [1,1] (ph), all of which look promising.
