Particle.news
Download on the App Store
4 ARTICLES
·
17h ago

Centene Reports $253 Million Q2 Loss and Restores 2025 Guidance at $1.75 EPS

Its elevated health benefits ratio of 93% has driven the company to seek higher state Medicaid payments, refiling ACA premiums to restore profitability.

A sign for Wellcare, part of the Centene Corporation, is seen in Queens, New York, U.S., November 16, 2021. Picture taken November 16, 2021. REUTERS/Andrew Kelly
Image
Image
Image

Overview

  • The insurer posted a $253 million net loss in the second quarter, reversing from a $1.1 billion profit a year ago as medical claims surged.
  • Premium and service revenues climbed 18% year-over-year to $42.5 billion on growth across its 28 million subsidized plan subscribers.
  • Its health benefits ratio jumped to 93% from 87.6%, driven by reduced risk-adjustment transfers and rising costs in behavioral health, home health and high-cost drugs.
  • CEO Sarah London said the company will work with urgency to restore its earnings trajectory after pulling full-year guidance in early July.
  • Centene reinstated its 2025 adjusted EPS forecast at roughly $1.75, and is seeking rate increases and refiling ACA rates to shore up margins.