Centene Reports $738 Million Profit As Medicaid And Medicare Plans Grow

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Centene Tuesday reported $738 million in quarterly profits and raised its guidance for the rest of the year thanks to strong enrollment and revenue from the Medicare and Medicaid health plans it sells.

Centene’s net profits rose to $738 million, or $1.27 per share, in the third quarter ended Sept. 30 compared to $584 million, or 99 cents per share in the year ago period, the company announced Tuesday.

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Meanwhile, Centene’s third quarter revenues increased 11% to $35.9 billion from $32.4 billion in the year-ago quarter thanks to to growth of sales and membership in its Medicaid and Medicare plans.

Centene, which sells an array of government subsidized health insurance including Obamacare, said total managed care membership increased to 26.8 million compared to 25.6 million in the year-ago period. Total enrollment in Medicaid, Centene’s biggest chunk of business, is now at 15.7 million compared to nearly 14.8 million a year ago.

“Our strong third quarter and year-to-date results provide Centene with positive momentum as we move towards 2023,” said Sarah London, Centene’s chief executive officer, who Tuesday announced that the company would once again raise the company’s full-year adjusted earnings per share outlook for the rest of the year. “Selecting our future PBM partner represents a major Value Creation Plan milestone and positions us to capture significant value for our members, partners, and stakeholders in 2024 and beyond.”

Centene, which awarded its pharmacy benefit management contract to Cigna’s Express Scripts beginning in 2024, raised the lower end of its guidance by five cents to $5.65 a share and maintained the upper end at $5.75 per share. Centene described the move as the “4th guidance raise in 2022 totaling a cumulative $0.30, or 5.5%.”

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