Elevance Health Inc. announced that Chief Financial Officer Mark Kaye will take on oversight of Carelon, the company’s integrated healthcare services arm, and that Executive Vice President Felicia Norwood will become Chief Health Benefits Officer, consolidating the Health Benefits organization under a single accountable structure. Peter D. Haytaian, former Executive Vice President and President of Carelon, will step down effective May 4 2026 to focus on family commitments, remaining with Elevance as a Special Advisor through December 31 2026 to ensure a smooth transition for Carelon’s clients and partners.
Carelon’s 2025 operating revenue rose 33% from 2024 to $71.7 billion, with a 4.7% operating margin, underscoring its role as a key growth driver for Elevance. The Health Benefits segment reported an 11.2% increase in operating revenue to $167.1 billion in 2025, with a 2.5% operating margin. These figures illustrate the scale of the two business units and the need for tighter leadership alignment to sustain performance.
The restructuring is designed to align financial oversight with operational execution in Carelon, a payvider that integrates pharmacy, behavioral health, value‑based care, and care‑delivery services. Consolidating the Health Benefits organization aims to improve coordination between commercial and government plans, addressing headwinds in Medicaid and Medicare Advantage that have pressured margins and membership growth. By placing both units under focused executive leadership, Elevance seeks to streamline decision‑making and strengthen execution across its core services.
Gail Boudreaux, President and CEO, said, "These management changes support disciplined execution and help us move with greater clarity and coordination as we continue to scale." Mark Kaye added, "I look forward to leading the Carelon team as we build on our strong foundation, deliver for clients and partners, and execute with discipline that supports sustainable growth and long‑term value." Felicia Norwood noted, "Bringing Health Benefits together under a single accountable structure strengthens coordination and execution as we continue delivering for members and customers."
Analysts have expressed caution amid Medicaid headwinds, noting that the company’s Q4 2025 earnings highlighted membership attrition and a projected negative Medicaid operating margin for 2026. Despite these concerns, Elevance reaffirmed its full‑year 2026 guidance, projecting diluted earnings per share of at least $22.30 and a benefit expense ratio of approximately 90.2%. The guidance reaffirmation signals management confidence in maintaining profitability while the restructuring aims to address operational challenges.
The expansion of CFO Mark Kaye’s responsibilities signals a strategic focus on Carelon as a growth engine, while the consolidation of the Health Benefits organization is intended to improve margin and operational efficiency. However, ongoing Medicaid and Medicare Advantage headwinds may weigh on the 2026 outlook. Overall, the restructuring is positioned to support long‑term value creation by aligning leadership with the company’s strategic priorities and addressing key operational challenges.
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