Centene Profits Hit $1 Billion On Big Obamacare Growth

Centene reported second quarter profits of $1 billion as membership grew by nearly 2 million thanks to an increase in enrollment in Obamacare plans, the health insurer said Friday.

Centene, which sells an array of government subsidized health insurance including Obamacare, said total managed care membership increased to 28.41 million, compared to 26.43 million at the end of the second quarter of 2022. Centene’s enrollment in individual coverage under the Affordable Care Act, also known as Obamacare, grew what Centene calls its “commercial marketplace” business to nearly 3.3 million members from 2 million a year-ago.

Such growth helped Centene’s “premium and service revenues” increase 3% to $34.8 billion from $34.0 billion in the year-ago period.

“Our strong second quarter performance demonstrates Centene’s ability to deliver excellent financial results in a dynamic healthcare landscape,” Centene’s Chief Executive Officer Sarah M. London said. “New business wins, strong Marketplace membership growth and continued advancement of our Value Creation Plan contributed to another solid quarter of execution. We are increasing our full year 2023 adjusted diluted EPS guidance, reflecting year-over-year growth of at least 12%, consistent with our long-term growth algorithm.”

Centene, which is a big national player in providing Medicaid benefits to poor Americans, grew that business to more than 16 million compared to 15.4 million in the year ago period.

“Medicaid growth, primarily due to the impact of membership growth during the public health emergency, partially offset by reductions as eligibility redeterminations began in the second quarter of 2023,” Centene said in its earnings report.