Centene becomes latest insurer to flag Medicaid headwinds

After UnitedHealth (NYSE:UNH), Centene (NYSE:CNC) has become the latest health insurer to flag concerns over its Medicaid business, blaming state-level eligibility reviews that resumed last year following the end of COVID-era protections for membership enrollments.

"We are seeing pressure in our Medicaid book of business in April results," Centene (CNC) CEO Sarah London said as she reiterated the company's 2024 outlook at Bernstein's 40th Annual Strategic Decisions Conference on Friday.

London blamed it on the Medicaid redetermination process, which resumed in April 2023, and the health of the remaining members.

"And that is largely due to the impact of this redetermination process that we've been going through for more than a year now and the shift in acuity of the underlying population that remains after the redetermination process," she said.

However, the company kept its 2024 guidance for adjusted earnings per share and health benefits ratio unchanged at more than $6.80 and 87.3% to 87.9%, respectively.

On Wednesday, Medicaid-exposed health insurers Centene (CNC), Elevance Health (ELV) and Molina Healthcare (MOH) came under pressure after UnitedHealth (UNH) issued similar remarks at the Bernstein event.

UNH CEO Andrew Witty cited a "multi-quarter cycle" before obtaining premium reimbursement rates from states in line with medical utilization as the redetermination process continues.