Centene reported third quarter profits of $469 million as membership in Obamacare plans grew by 1.5 million, the health insurer said Tuesday.
Centene, which sells an array of government subsidized health insurance including Obamacare, said total managed care membership increased to 27.96 million, compared to 26.76 million at the end of the third quarter of 2022. Centene’s enrollment in individual coverage under the Affordable Care Act, also known as Obamacare, grew what Centene calls its “commercial marketplace” business to 3.6 million members from 2.1 million a year-ago.
Such growth helped Centene’s “premium and service revenues” increase 4% to $34.9 billion from $33.7 billion in the year-ago period. Net income fell from $738 million a year ago thanks in part to charges that negatively impacted the company’s bottom line such as an “impairment of $251 million” from the sale during the quarter of U.K. hospital operator Circle Health.
“Our strong third quarter results demonstrate the positive momentum Centene is generating as we prepare for 2024,” said Centene Chief Executive Officer Sarah M. London. “Marketplace growth, effective navigation of redeterminations year-to-date and successful execution against value creation initiatives together position us well to continue advancing our strategic priorities. We are increasing our full year 2023 adjusted diluted EPS guidance, reflecting year-over-year growth of more than 14%.”
Centene, which is a big national player in providing Medicaid benefits to poor Americans, saw enrollment drop slightly to 15.2 million compared to nearly 15.7 million in the year ago period thanks to the end of the public health emergency.
The Covid-19 pandemic era U.S. public health emergency kept record numbers of people covered by not kicking anyone off Medicaid while Congress and the Biden administration increased and expanded subsidies so more Americans could afford individual Obamacare coverage under the Affordable Care Act.
But things are changing somewhat this year for people with Medicaid coverage given the end in May of the U.S. public health emergency that boosted the number of Americans covered when “Medicaid redetermination” temporarily ended three years ago. Medicaid redetermination, also described as Medicaid renewal or Medicaid recertification, is essentially when people are asked to show they are qualified for such coverage.
Most health insurers like Centene with large Medicaid enrollment have seen slight declines in Medicaid enrollees as states roll out their renewal and redetermination processes.
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