Medicaid expansion boosted earnings in the second quarter, company officials said. As of June 30, Centene covered almost 156,000 members who gained insurance through Medicaid expansion in California, Massachusetts, Ohio and Washington.
“We continue to view this as a growth opportunity as more states adopt expansion,” Centene CEO Michael Neidorff said during an investor call Tuesday.
Centene also had 75,700 people purchase coverage through the marketplaces, though Neidorff said the company expects only a “minimal impact” from exchange enrollees this year. Most of Centene's exchange enrollees were low income, and more than 90% were eligible for premium subsidies.
Net earnings in the second quarter grew almost 24% to $48.9 million, while total revenue climbed 54% to more than $4 billion. In the first six months of fiscal 2014, Centene posted more than $81.8 million in profit with $7.5 billion in revenue.
The insurer covered almost 3.2 million people as of June 30, and predicted full-year premium and service revenue will total between $15 billion and $15.5 billion. In the first quarter of this year, Centene raised its full-year revenue guidance to between $14.2 billion and $14.8 billion.
Centene is primed to benefit from several new initiatives. For example, effective July 1, Centene's Illinois plan, IlliniCare Health Plan, began to care for the 115,000 people within Cook County Health and Hospitals System's managed-care program. The five-year agreement is worth $1.8 billion.
Investors responded positively to Centene's results. By the end of morning trading, Centene's shares were up more than 7% to $81.35.
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