Skip to main content
Sister Publication Links
  • ESG: THE IMPLEMENTATION IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Digital Health
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Unwell in America
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Finance
February 07, 2023 02:40 PM

Centene predicts big losses during Medicaid redeterminations

Mari Devereaux
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Centene Corporation_i copy_i.png
    Kris Tripplaar/Sipa USA

    Centene expects to lose an estimated 2.2 million Medicaid members during the redetermination process over the next 18 months, which would significantly dial back the insurer's pandemic-era growth.  

    The company on Tuesday reported having nearly 16 million Medicaid members at the end of 2022, including around 3 million gained since the onset of the pandemic. It estimates its marketplace products will gain 200,000 and 300,000 lives during redeterminations, CEO Sarah London told analysts during the company's fourth-quarter earnings call Tuesday.

    "A lot of that is because of a belief that the vast majority of members who redetermine will first go commercial," London said. "We just need to see how the data starts to play out and whether there are any adjustments to that as we see folks coming over onto the marketplace products."

    Before states can begin to disenroll ineligible people from Medicaid starting April 1, Centene has been working with state and community partners to facilitate member transition and coverage continuity, she said. Centene is also prioritizing member outreach for those likely to be eligible for Medicaid and tracking redetermination-related activities through reporting and membership dashboards.

    For the fourth quarter, Centene said it lost $213 million, or 38 cents a share, compared with year-ago profit of $599 million, or $1.01 a share. Revenues totaled $35.6 billion, up from $32.6 billion.

    For the year, Centene recorded a profit of $1.2 billion, or $2.07 a year, compared with $1.3 billion, or $2.28 a share in 2021.

    Annual revenue increased 15% to $144.5 billion, from $126 billion in 2021. The increase is largely attributed to a surge in Medicaid and Medicare membership, as well as Centene's January 2022 acquisition of Magellan, London said. 

    The company ended 2022 with 21% more Medicare Advantage members than in 2021. 

    Centene predicts it will price with 2024 Medicare Advantage losses in mind as a result of poor star scores. A number of insurer ratings fell this year due to more heavily weighted consumer experience surveys, the enforcement of stricter pre-pandemic standards and disenrollment. 

    "We will, most certainly, be pricing for a negative margin in Medicare Advantage in 2024 temporarily, and we don't expect to grow Medicare Advantage in 2024 and it likely will shrink a little," CFO Drew Asher said during the call.

    Given that the preliminary rates for Medicare Advantage plans in 2024 are "less favorable than recent years," Centene intends to provide feedback to the Centers for Medicare and Medicaid Services to advocate for a larger boost to plan revenues, London said.

    Over the past year, Centene has reduced its real estate footprint by 70% and sold numerous businesses. 

    In January, it finalized the sales of Magellan Specialty Health for more than $600 million in cash and stock; Centurion, its prison healthcare business; and HealthSmart, a third-party health plan administration business.

    Related Articles
    Centene to shed Magellan Specialty Health for more than $600M
    Centene, Oak Street Health, Humana — here’s what went down at the 1st day of the J.P. Morgan health conference
    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Kyle-Wailes_16x9.jpg
    Wellvana Health raises $84M from Memorial Hermann, Valtruis, others
    sutter_i.jpg
    Sutter Health lost $249M in 2022 in reversal of fortune
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Digital Health
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Unwell in America
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing