Centene's Medicaid Revenue Rises 5% to $22.8B Despite Membership Drop
CNC has more than doubled off its 52-week low of $25.075.
Summary
Centene's Q2 Medicaid premium and service revenue climbed 5% to $22.77 billion, even as membership fell to 12.11 million from 12.82 million a year ago. State rate increases and directed payments more than offset the attrition. The Medicaid health benefits ratio improved to 93.9% from 94.9%, reflecting better cost management. This follows last night's 10-Q and 8-K filings that showed a strong earnings beat and raised guidance. The Medicaid segment details confirm the core government business is stabilizing, which is critical given the earlier Obamacare losses and buyout programs.
At the time of this announcement, CNC was trading at $65.00 on NYSE in the Life Sciences sector, with a market capitalization of approximately $31.6B. The 52-week trading range was $25.08 to $69.36. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.