Federal regulators announced Monday they plan to prohibit Elevance Health from accepting new enrollees in its Medicare Advantage prescription drug plans due to ongoing compliance failures.
According to a company filing, the Centers for Medicare & Medicaid Services informed the health insurance company of the pending sanctions, which are set to begin March 31, 2026, unless the identified problems are resolved to the agency’s satisfaction.
The announcement caused Elevance shares to drop 3% during premarket trading Monday.
Federal officials stated the proposed penalties stem from Elevance’s failure to meet specific Medicare Advantage risk adjustment data submission standards.
According to the February 27 notice, Elevance has not properly submitted data corrections for diagnosis codes lacking adequate medical record support through the government’s mandatory electronic systems since November 13, 2018.
Rather than using the required digital submission process, Elevance has consistently delivered this information using encrypted USB flash drives, a delivery method federal regulators have clearly prohibited.
Officials noted that Elevance maintained this rejected practice as recently as October 10, 2025.
In response, the health insurance company stated it updated its submission procedures in April 2023 and emphasized that the planned suspension will not affect current members already enrolled in the prescription drug coverage plans designed for seniors.
