Clover Health Investments Q1 2025 Earnings Report

Clover Health Investments EPS Results

• Actual EPS: $0.05
• Consensus EPS: -$0.07
• Beat/Miss: Beat by +$0.12
• One Year Ago EPS: N/A

Clover Health Investments Revenue Results

• Actual Revenue: $462.33 million
• Expected Revenue: $466.93 million
• Beat/Miss: Missed by -$4.60 million
• YoY Revenue Growth: N/A

Clover Health Investments Announcement Details

• Quarter: Q1 2025
• Date: 5/6/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, May 6, 2025
• Conference Call Time: 5:00PM ET

Clover Health Investments (NASDAQ:CLOV) provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.

Clover Health Investments Q1 2025 Earnings Call Transcript

Key Takeaways

• In Q1 2025 Clover delivered 30% Medicare Advantage membership growth, 33% revenue growth and a 279% increase in adjusted EBITDA year-over-year, reflecting strong operational momentum.
• The company reaffirmed full-year 2025 guidance of ~210,000 average MA members, $1.8–1.875 billion in insurance revenue and raised adjusted EBITDA and net income targets to $50–70 million, while maintaining expected loss ratios of 87–88%.
• Clover Assistant continues to drive better clinical outcomes, with research showing earlier diagnosis of chronic conditions, improved congestive heart failure management and smooth adaptation to CMS rule changes (HECV28).
• Clover Care Services’ home-based care programs, including in-home “Welcome Home” visits and palliative support, are enhancing member transitions from hospital stays and targeting high‐need seniors.
• The launch of Counterpart Health aims to expand Clover Assistant into other Medicare Advantage plans, with growing partner engagements and added implementation resources to capture new market opportunities.

Presentation

[Operator]

Ladies and gentlemen, good afternoon and welcome to the Clover Health First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the prepared remarks. As a reminder, today's call is being recorded. I would now like to turn the call over to Ryan Schmidt, Investor Relations for Clover Health.

[Operator]

Please go ahead.

[Ryan Schmidt, Investor Relations at Clover Health Investments]

Good afternoon, everyone. Joining me on our call today to discuss the company's first quarter twenty twenty five results are Andrew Toy, Clover Health's Chief Executive Officer and Peter Kuipers, the company's Chief Financial Officer. You can find today's press release and the accompanying supplemental slides as well as the company's most recent investor deck in the Investor Events and Presentations section of our website at investors.cloverhealth.com. This webcast is being recorded and a replay will be available in the Investor Relations section of the Clover Health website. I'd also like to caution you that we may make forward looking statements during today's call that are subject to risks and uncertainties, including expectations about future performance.

[Ryan Schmidt, Investor Relations at Clover Health Investments]

Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including in the risk report on Form 10 ks and other SEC filings. Information about non GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can be found in the earnings materials available on our website. With that, I'll now turn the call over to Andrew.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

All right, everyone. Thanks for joining us today. I'm excited to dive into our first quarter twenty twenty five results. We've been working hard at Clover and it's really showing in our Medicare Advantage performance and overall business growth. Let's break down what we've accomplished and why it matters.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

First, let's talk about MA plan growth where we're doing very well. We've seen some significant numbers this quarter. We're looking at a 30% jump in MA membership, 33% growth in our revenue and a whopping 279% increase in adjusted EBITDA year over year. That's not just numbers on a page, that's real momentum. And what's driving this?

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

It's our focus on getting people the right healthcare right when they need it, earlier, higher quality and critically more affordable. This isn't just about growth for growth sake. It's about making a real difference in people's lives by lowering barriers in care, whether it be by reducing out of pocket costs or delivering care to them right in their homes. We even released a new white paper last week showing how Clover Assistant helps better manage congestive heart failure, leading to better care and fewer hospital visits. That's the kind of impact we're aiming for.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Next up, let's discuss our confidence in the rest of the year. This quarter's performance really reinforces that we're on the right track to hit our full year 2025 goals and improved guidance. We had a strong enrollment season and those new members are utilizing care at expected levels. That's key. We're planning to keep this momentum going throughout the year.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

But what's most important, it's how we're taking care of these new members. We're using Clover Assistant to power their primary care, making sure they get the best health outcomes and the most efficient care. This isn't just about enrolling more seniors. It's about making sure we look after them in the right way. Now let's talk about how we're managing things behind the scenes.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Our Part C and Part D utilization costs are both tracking as expected. We are also navigating the HEC V28 phase in smoothly with Clover Assistant. Why is this important? Because it shows our technology first care model is adaptable and can handle changes in the industry. We're not just reacting, we're staying ahead of the curve, making sure our members get better care management.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

That's a huge advantage for us. A big part of our confidence comes from our control of our care model, whether in the wide PPO network with PCPs using Clover Assistant or via home care in our Clover Care Services division, care is what we do. Speaking of Clover Care Services, our mission is simple, to deliver additional support to Clover members when and where they need it. Every Clover member is eligible for a personalized in home Clover Care visit and coordinated care services tailored to their health journey. We work closely with Clover Assistant using physicians to identify members needing support and deliver that support directly to them.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

For example, our Welcome Home Clover Care visit helps members transition from hospital inpatient stays. For members with the highest needs, we offer a comprehensive in home care program focused on palliative and advanced illness support. These services drive strong performance for our health plan and provide tailored personalized care for our Clover members. We're also pleased about the recent CMS final rate notice for 2026. It's a positive for us and will add to our momentum, especially with our four star PPO plan coming next year.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

But let's be clear, our real strength is in our architecture and in our operations. It's in our innovative care model, our wide networks and the clinical and financial results we get from Clover Assistant. I've spoken about this before and I want to emphasize that we would feel good no matter what the rate notice was. That's because we're not just relying on favorable rates, we're building a solid foundation for long term success. Looking ahead, we see even more growth and profitability coming in 2026 and beyond.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

This isn't just wishful thinking. It's based on our strategy of expanding Clover assistance reach, managing our members with personalized care and the financial boost we'll get from our four star rating. It's too early to talk about bid specifics right now, but our intention is to keep building a growth flywheel and we expect it to start spinning much faster as we go into next year. And for areas where we don't have an MA plan, we're pushing forward with counterpart health. We're seeing a great opportunity here to partner with others and bring Clover Assistant to even more people.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

We're already working with several partners and we have more in the pipeline. Organizations are seeing the value of Counterpart Assistant in improving care and managing costs. And we believe this is a big area of growth for us. To support this growing deal flow, we are actively taking steps to add implementation resources to ensure successful onboarding and integration for our partners. I'm excited about traction in this area and I think the opportunity to bring CA to many people served by other MA plans is a very real one.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Finally, I want to highlight the real world impact of Clover Assistant. Our research shows that doctors using Clover Assistant diagnosed chronic kidney disease and diabetes earlier. And we just released our latest paper on congestive heart failure showing that Clover Assistant usage is associated with better care, fewer hospitalizations and fewer readmissions related to CHF. Heart failure is a huge issue and we're making a real difference. We're giving our doctors the tools they need to provide better care and it's showing in the results.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

So to sum it up, we've had a fantastic start to 2025. Our approach powered by Clover Assistant and our home care program is driving strong growth in membership, revenue and adjusted EBITDA. We're confident in our 2025 goals and excited about our future. Now I'll hand it over to Peter for the financial update.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Thank you, Andrew. First, let's start with the results and then I will cover the drivers in more detail. I'm very pleased with our strong first quarter performance, where we have delivered a combination of 30% membership growth and 33% total revenue growth, while growing adjusted EBITDA by 279% and adjusted net income by 322% year over year. We are executing fairly well against our strategy. Let's now move into the drivers.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Starting with membership and revenue. Insurance revenue grew by 34% year over year to $457,000,000 driven by 30% Medicare Advantage membership growth from strong AEP and OEP enrollment seasons. Member retention was also strong during both the AEP and OEP season. Our first quarter results give us conviction in our new member cohort management strategy. Similar to AEP, the majority of our OEP growth occurred in our core New Jersey markets, where we have a strong Clover assisted network presence.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

During the quarter, new members were effectively onboarded and our results demonstrate strong management of both our new member and profitable returning member cohorts with performance in line with expectations. This is reflective of our pricing discipline, geographic growth strategy and our efforts to proactively engage with new members via Clover Assistance powered primary care. Given our experience over the last number of years, we have strong conviction that the unit economics for our new member cohorts will improve as we've seen on average a more than a 700 basis point improvement in loss ratios between year one and year two cohorts and an approximate 1,500 basis point improvement between year one and year three cohort members. This demonstrates the effectiveness of our model over the long term by providing earlier and better care management at a lower total cost of care. Overall, we are confident that our medical costs are in line with expectations.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

We experienced elevated inpatient utilization in January from an uptick in lower intensity care related to a later cold and flu season. However, trends quickly normalized starting in February and continued through March. Operationally, we continuously perform checks into our data and metrics via prior authorizations, weekly claims and real time Clover assistant insights from provider interactions to identify patterns in our utilization. Focusing next on SG and A. I'm pleased with the operating leverage that we are demonstrating.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

This quarter, adjusted SG and A as a percentage of total revenue decreased to 18% of revenue, representing an improvement or decrease of three sixty basis points year over year, while absorbing the increased growth and variable costs associated with higher membership and our continued strategic quality investments into our business. Our profitability metrics are strong. GAAP net loss during the first quarter of twenty twenty five improved by $18,000,000 year over year to a loss of $1,000,000 First quarter 20 20 5 adjusted EBITDA improved by 279% to a profit of $26,000,000 Similarly, adjusted net income grew by three twenty two percent year over year to a profit of $25,000,000 Lastly, insurance VER for the first quarter twenty twenty five was 86.1%, which represents a modest increase year over year, but importantly, is in line with our expectations and consistent with our full year 2025 guidance given seasonality. We also note that one driver of the year over year increase in insurance BER was the implementation of our CA enabled affiliate entity within our operating structure, which the plan now employs to engage with Fiverr directly and better service our health plan and membership in New Jersey. The goal of this entity is to drive higher quality and better health outcomes for our members via better care coordination services, unified care management and a deeper focus on our partnerships with local physicians.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Overall, we're proud of our strong results this quarter. As we look ahead to the rest of the year, please note that we expect typical Medicare Advantage seasonality trends in the form of higher utilization levels in the back half of the year, with more of an impact in the fourth quarter of the year as is typical. That said, this is simply seasonality. Our first quarter performance reinforces our conviction in our improved 2025 guidance, which I will cover later in this call. Turning next to the balance sheet.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

We are pleased to announce that during the first quarter, we have successfully repurchased 5,000,000 shares of common stock, making up the remaining $80,000,000 authorized under our buyback program announced in May of last year. This strategic decision reflects our confidence in the company's long term value and the strength of our balance sheet. We ended the first quarter of twenty twenty five with cash, cash equivalents and investments totaling $391,000,000 on a consolidated basis with $126,000,000 at the parent entity and unregulated subsidiary level. Our unregulated cash was impacted by various working capital and timing dynamics as well as the stock buyback program. We're confident that this balance will increase throughout the year, allowing us to operate from a position of strength as we invest in our growth model.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

During the first quarter of twenty twenty five, cash flow used in operating activities was $16,000,000 and was similarly impacted by working capital and timing related dynamics. That said, given our business momentum, we continue to expect to be on pace to generate strong cash flow from operating activities for the full year. Days in claims payable was thirty seven days as of 03/31/2025, representing a decrease of twenty two days sequentially. This reflects the normalization of our claims inventory and timeliness of claims payments to historical levels. If you recall at this time last year, we were simultaneously navigating the industry wide change healthcare incidents as well as the transition to our back office BPAS Medicare Advantage ecosystem.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

We're pleased to report the successful conclusion of this and expect our claims payment patterns to now be a typical go forward ranges. For our full year 2025 guidance, we believe that we are well positioned to accomplish our goals this year and are providing the following guidance update. We are reconfirming our Medicare Advantage membership to average between 210,000 members, reflecting 30% growth year over year at the midpoint and continued intra year growth for the SEP periods in 2025, all driven by a robust plan benefits, competitive positioning and our four star rating. We are also reconfirming our insurance revenue of between $1,800,000,000 and $1,875,000,000 reflecting year over year growth of 37% at the midpoint of the range. In tandem with our membership growth expectations, we anticipate more revenue in the second half of the year as compared to the first half, unlike historical patterns.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

We are reconfirming our adjusted SG and A guidance to be between $355,000,000 and $365,000,000 This represents adjusted SG and A as a percentage of total revenue of 19 to 20% and is an approximate 200 basis point decrease or improvement year over year at the midpoint of the range. We are increasing our 2025 adjusted EBITDA guidance to now be between $50,000,000 and $70,000,000 Similarly, we are also increasing our 2025 adjusted net income guide to now be between $50,000,000 and $70,000,000 Lastly, we continue to expect insurance VER to be within a range of 87% to 88. In totality, as Andrew mentioned, we delivered strong results and a very strong start to the year. Throughout the remainder of 2025, we look forward to continuing to balance our strong profitability profile via exceptional core management together with our strategic investments in new membership growth, Clover system technology and expanding both our Clover home care services and counterpart health go to market strategy. As such, we have increased conviction in our improved full year 2025 guidance, and we believe that we are very well positioned for accelerated growth and profitability in the future.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Looking forward, first, we will continue to invest in growth and expanding Clover system technology and reach to better manage our new and returning member cohorts. Second, we believe that we are very well positioned with tailwinds going into 2026 due to an increase to a four star payment year in 2026. Third, we expect a compounding favorable impact from the recent CMS final rate notice, which is additive to the impact of the improved four star rating. Fourth, we expect the unit economics of our large new cohort of membership added in 2025 to significantly improve in 2026 and beyond, as well as continued maturation of our broader returning member cohorts. Lastly, we believe that there will be a continued impact from our efforts to gain operating leverage.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

With that, let me now turn the call back to Andrew for closing comments.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Thanks, Peter. In conclusion, we are incredibly proud of our strong start to 2025. These first quarter results clearly demonstrate our ability to meaningfully grow membership, expand profitability and execute our strategic plan effectively. Our differentiated model powered by focused home care platform is delivering tangible value and better clinical outcomes driving our strong Medicare Advantage performance. We are confident in our improved full year 2025 guidance and are strategically investing in our growth model, managing our new and returning member cohorts and expanding Clover assistance reach.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

These efforts are not only enhancing our current position, but also positioning us for accelerated growth and profitability in the future. We remain excited about Clover's trajectory and are committed to driving long term value for our members and shareholders alike. With that, let's open it up for questions.

[Operator]

Thank you. We will now be taking questions from Clover's research analysts. We will take our first question from Jonathan Young with UBS.

[Jonathan Yong, Analyst at UBS Group]

Hi, thanks. Thanks for taking the question here. Just starting with the insurance business first. Can you provide any color on how core medical trends are progressing there between kind of new versus the existing cohorts? And how are members hitting the out of pocket drug max?

[Jonathan Yong, Analyst at UBS Group]

Is it trending in line with your expectations? And has there been any change in behavior there?

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Yes. Thank you, Jonathan. It's Peter. So overall, cost trends are as expected. We also say that the both the new members cohort and the returning members cohort are also from an MCR and VER perspective trending in the way both in actuals and what we see in the coming quarters as expected as well.

[Jonathan Yong, Analyst at UBS Group]

Okay. And then we didn't hear much on counterpart health here. Just any color on how that go to market strategy is progressing, if there's been any more bigger wins and kind of as we look ahead, when can we start seeing contribution? Thanks.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Yes. Hey Jonathan, it's Andrew. Yes, definitely remain excited about the counterpart business and we are looking to provide more updates on that as we go out throughout the year. We remind everybody that we are not necessarily intending to make announcements around every single deal that we make around there. However, we remain excited about it.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

All contributions, revenue, etcetera, will of course be in the consolidated financials as well. And we're going to be talking more about that as we proceed in the quarter. But right now, we're very focused on making sure that we improve profitability in the Insurance segment.

[Operator]

We will go next to Matt Hewitt with Craig Hallum Capital.

[Matt Hewitt, Senior Research Analyst at Craig-Hallum]

Good afternoon. Thanks for taking the questions. Maybe first up and kind of sticking with the counterpart theme. Have you had some, I guess, feedback or how have the initial implementations gone? And what are you hearing from those partners regarding kind of the key metrics that you would be looking from for once those once the platform is implemented and they've kind of had a chance to use it for a little bit?

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Yes, thanks. So definitely what we're looking for and what we're aiming to do is to make sure that we deliver the amount of value within our counterpart customer base as similar to what we see within our own MA plan and within the providers that use the assistant within our own network. So that's what our aim is. That's the power of the software approach is that we can develop the product. We can then use it to help manage care to identify diseases earlier within almost any part of the Medicare population, whether it be under our own plan or whether it be with other people's plans, third party plans.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

So the key KPIs that we're looking for there are do we still see the engagement with the physicians? Do we still see the earlier diagnosis and management of diseases? Do we still see improvement on the HEDIS side of things? As we said, we're very proud of our performance there. It's all the same metrics that we use within our own plan, but translated into third party usage.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

And our initial data, we feel optimistic on that. And our goal would that those would be effectively equivalent.

[Matt Hewitt, Senior Research Analyst at Craig-Hallum]

That's great. And then maybe shifting gears a little bit, given some of your success over the past, call it, couple of years, has there been any changes in the competitive landscape? Are you seeing some of your peers adapting or kind of shifting to your model a little bit more? Are you seeing any new competitive entrants? And how does that, kind of change your game plan, if at all?

[Matt Hewitt, Senior Research Analyst at Craig-Hallum]

Thank you.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Yes. I think that what we see here is that we have been focused on the PPO and the wide network and managing care within that wide network for quite some time. And others have been focused and it's perfectly legitimate as a model with two value based programs within their network deploying those out, but rarely with a software backing, right? Like most people's development of software has been for employed physicians. It's been for insurance operations.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

And while those are both good things, the assistant kind of part of Clover Assistant is usable by the broader wider network. And that is a distinct mode and advantage that we have. So that's something we're excited to bring as a model to drive clinical value to lots of different markets. Also there are places we think we can look after a large percentage of the total Medicare population in The U. S.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

And I think that what we're seeing is that others have struggled a bit on the PPO and are pulling back on benefits are perhaps not really investing as much as they used to cutting back on marketing, cutting back on commissions. And that is just a natural cycle of the market. We are staying the course. We feel good about where we are. We feel that our model is working.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

We feel that it is highly differentiated.

[Matt Hewitt, Senior Research Analyst at Craig-Hallum]

Got it. All right. Thank you.

[Operator]

We'll go next to Richard Close with Canaccord Genuity.

[Richard Close, Managing Director at Canaccord Genuity Group]

Yes. Congratulations on a great start to the year, first of all. Andrew and Peter, you guys mentioned accelerated growth in the years You talked about the growth flywheel and expect faster growth next year. So maybe can you break that down a little bit?

[Richard Close, Managing Director at Canaccord Genuity Group]

Obviously, your positive rate adjustment for next year and then the four stars, but how are you thinking about the building blocks to growth? And where is the acceleration come from beyond? And I guess the positive on rate and star?

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Yes. Thank you, Virgil. This is Peter. So what we see of course now also now that we have experienced with a large cohort joining the plan this year, that's a reconfirmation for us to really see the cohort economics for both new members and then also the returning members. So that is a large factor as we look at unit economics and profitability going into next year.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Yes, absolutely, the rate notice will be a tailwind. But with our model, we don't necessarily need that, if you will. We are, of course, now looking at bids, some more news to come there. So likely there'll be some adjustments there from a benefit perspective. And then, of course, we also have, of course, the cost actions we've taken as well.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

We'll have more leverage from an SG and A perspective also. And then lastly, we believe that from our product roadmap, from a Clover system technology perspective, we'll have additional impact as well, starting with the clinical side and then of course the results flowing through the financials as well over time.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Yes. And then just jumping in here. Obviously, we are as a reminder to all is that we're going from a payment year. We're being paid on 3.5 stars this year and we will be going to paid on four stars next year, which affects the benchmark. And so we're looking at what we do.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

As Peter said, we're still early on and we're not talking about bid just yet, but obviously we're factoring that into our bid discussions. Others in our might be moving downwards in our markets on the pressure on their benefits, whereas we can we think we have room for the move Another dimension on that, as Peter said, was a lot of that's being driven by CA. CA helps our star ratings. We are very proud. We're the number one plan of over 2,000 lives on HEDIS under the star ratings.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

That's driven by our technology platform. We look to maintain that advantage going forward, which will help us with stars, which will help us with benefits too.

[Richard Close, Managing Director at Canaccord Genuity Group]

Okay. And I guess I have or my follow-up is somewhat centered on New Jersey. First, in terms of New Jersey, obviously, you have great penetration there. And I'm curious with respect to this accelerating growth, how you think about like are you bumping up on where you can go in New Jersey and then do you have to go to new markets? So that's one question.

[Richard Close, Managing Director at Canaccord Genuity Group]

And then the second part of the question is you mentioned this affiliated entity related to BER, if you can go into that a little bit more for us as well.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

Yes. I'll jump in on the first part, Richard. I'll let you take the second part. Regarding New Jersey, I think we have plenty of room to run. We have plenty of room within that market.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

We have our full platform deployed there. It's our home state that we feel a lot of affection for New Jersey. We have plenty of market share. While we're proud of the market share position we have, we have we also have room to take on more market share there. So feel really good about where we are there.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

That doesn't mean that we are not going to look at other geos. That's not what I'm saying. I think we certainly will look at other geos. But because we are just right around north of 20% market share on non SNP in New Jersey, we have plenty of room to go before we become saturated. And I'll let Peter take the second part.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

Yes. So when comparing BER year over year or sequentially quarter over quarter, a couple of things to keep in mind as far as drivers, right? So first of all, new members from a BER perspective are headwinds. That is then offset by returning members as well. Of course, we do have a somewhat elevated medics trend as well, but it appears that that is much lower than competitors that do not have a clinically technology focused approach.

[Peter Kuipers, Chief Financial Officer at Clover Health Investments]

There's a little bit of timing as well as far as PPD. And then lastly, going back to the CA enabled affiliated entity that we signaled I think last year that we were setting up is really meant to drive higher quality and better care for members. So activities that that entity is deploying include for example, care coordination, care management and also partnerships with local physicians. So that is a fourth factor if you look at both quarter over quarter and year over year BER. Thank you.

[Operator]

With no other questions, this will conclude the Q and A portion of today's conference. I would now like to turn the call back over to Andrew Toy for any additional or closing remarks.

[Andrew Toy, Co-Founder, CEO & Director at Clover Health Investments]

All right. Thank you all again for joining us today and for the thoughtful questions. We appreciate your interest in Clover and look forward to updating you more in our next call. So have a great evening, everyone. Thank you.

[Operator]

Thank you. This concludes today's Clover Health first quarter twenty twenty earnings call and webcast. You may disconnect your line at this time and have a wonderful day.

Participants

Executives

• Ryan Schmidt, Investor Relations
• Andrew Toy, Co-Founder, CEO & Director
• Peter Kuipers, Chief Financial Officer

Analysts

• Jonathan Yong, Analyst at UBS Group
• Matt Hewitt, Senior Research Analyst at Craig-Hallum
• Richard Close, Managing Director at Canaccord Genuity Group