Centene reported first-quarter 2024 profits of $1.1 billion due to increased membership and premium revenue. … [+]
Centene reported first-quarter profits of $1.1 billion, driven by strong growth in Obamacare enrollment and higher membership and premium income. The health insurance company announced Friday.
Centene, which sells a suite of government-subsidized health insurance plans that include individual commercial insurance coverage under the Affordable Care Act, known as Obamacare, had a total of 28.45 million managed care members at the end of the first quarter of this year. However, the number of people remained stable at 28.42 million. At the end of the first quarter of 2023.
Centene’s adoption of individual insurance under the Affordable Care Act (also known as Obamacare) means that what Centene calls its “commercial marketplace” has 4.3 million members, up from 3 million a year ago. increased. This increase of more than 1 million people in Medicaid coverage helped overcome a 3 million drop in enrollment in Centene’s Medicaid coverage for poor Americans.
Centene’s net income exceeded Wall Street expectations, coming in at $1.16 billion ($2.16 per share) in the first quarter, compared with $1.13 billion ($2.04) a year earlier. Total revenue increased to $40.4 billion from $38.9 billion in the same period last year.
“Centene’s first quarter results demonstrate the strength of our diverse platform,” Centene CEO Sarah London said in a statement accompanying the company’s earnings report. We are executing our strategic plan for growth and increasing access to affordable, quality health care for our members and communities. ”
Centene has increased its 2024 diluted earnings per share guidance to “above $5.94 and the 2024 adjusted diluted EPS guidance to a minimum of $6.80,” the company said. Ta.
Centene’s “premium and services revenue” increased 4% to $36.3 billion from $35 billion in Q1 2023, driven by growth in the commercial marketplace (Obamacare). “This increase was driven by membership growth in our Marketplace business driven by strong product positioning.” partially offset by declines,” Centene said in its earnings call.
Centene, the nation’s leading provider of Medicaid benefits to poor Americans, saw Medicaid enrollment decline to 13.3 million from 16.3 million a year earlier, largely due to the end of the public health emergency.
During the U.S. public health emergency caused by COVID-19, no one was excluded from Medicaid in more than three years, maintaining a record number of people covered, while Congress and the Biden administration , increased and expanded subsidies to allow more Americans to enroll in individual Obamacare insurance under the Affordable Care Act. This allowed Centene to maintain stable total health insurance coverage.
The lifting of the U.S. public health emergency last May after three years of the COVID-19 pandemic meant that states were conducting so-called “Medicaid redeterminations” to control Medicaid coverage. This is affecting medical insurance companies, which are in charge of important business. Medicaid redetermination, also known as Medicaid renewal or Medicaid recertification, is essentially when people are asked to demonstrate that they are eligible for such coverage.
