Medicaid expansion, Health Net acquisition main drivers in Centene Q3 growth
- Centene in its Q3 2016 earnings report reported $10.8 billion in revenue for its third quarter.
- This represents an 86% growth compared to revenue in Q3 2015 ($5.8 billion).
- The company attributed the growth to the acquisition of Health Net as well as revenue from Medicaid coverage expansion.
Some in the industry have touted that insurers such as Centene and Molina who have more experience with managed care plans and lower income customers are better able to deal with the customer base that flooded the ACA marketplace when the law offered coverage to more individuals than ever before.
That said, it should be noted Centene is losing members from its ACA marketbase. The company served 582,600 members at the end of the quarter in the health insurance marketplaces, compared to 155,600 at September 30, 2015. However, that is down from 617,700 members from Q2 2016 and 683,000 such members in Q1 2016.
Still, Centene's membership is on the up-and-up thanks to Medicaid expansion and Health Net's acquisition. The company's total enrollment was 11.4 million at the end of the quarter, compared to 4.8 million last year. Of those, 1,048,500 members were in Medicaid expansion programs in 10 states, compared to 442,600 members in eight states during the same time last year.
Centene's stock rose from $63.02 per common stock at the close of business Monday to opening Tuesday at $65.36 per share. At the time of writing, stocks peaked at $66.59 at 9:45 a.m. leveling around $65 per share mark in the late afternoon.
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