Topic: 2026 BER outlook, cost trends, and Q4 guidance
Key points:
Q3 2025 BER was 89.5%; Q4 guidance implies a step-down from that level.
Normalized underlying incurred cost trends (excluding pharmacy) are ~4%; higher utilization and new member mix are key drivers.
2026 tailwinds include 4-star payment year, Part C rate notice, Part D direct subsidy, and SG&A leverage.
Mgmt stance: Neutral — Peter Kuipers stated the ~4% cost trend is “baked into the bid” for 2026, but acknowledged they “expected to do better” in 2025 and will work on improvement. Growth is targeted to priority markets with existing Clover member base and Clover Assistant coverage.