Centene said it expects lose 2.2 million Medicaid members as federal protections that shielded millions from losing health insurance during the COVID-19 pandemic end.
The nation’s largest Medicaid managed care operator said it will lose most of the 3.4 million Medicaid members it gained since the start of the pandemic.
Medicaid enrollment soared during the pandemic, increasing more than 27% to cover a total of more than 90 million people across the U.S. States were barred from removing people from Medicaid during the public health emergency.
States can resume eligibility checks April 1 and millions are expected to lose coverage as a result.
The company said it expects to add as many as 300,000 people to Affordable Care Act exchange plans after they lose Medicaid coverage.
Centene CEO Sarah London said the company is focused on ensuring coverage continuity to members who are no longer eligible for Medicaid coverage due to redeterminations.
Some who lose Medicaid coverage will be eligible for subsidized coverage through exchange plans, Centene said.
London said its Medicaid and marketplace markets overlap in 25 states, which will position the company well to pick up exchange members.
Centene covered more than 2 million people through marketplace plans at the end of last year and provided Medicaid coverage to nearly 16 million people.
For 2022, Centene reported a profit of $1.2 billion, a dip from $1.3 billion the year prior. The company generated revenue of $144.5 billion for 2022, a nearly 15% increase from the prior-year period due to Medicaid membership gains.