London: Centene expects third-quarter profit under the wall Street estimates on Tuesday like the early health insurance a rising medical costs in it Government-backed Medicaid program.
The states began Reassessment of eligibility for enrollment in Medicaid last year, following the Termination of a policy which required insurers Keeping low-income Americans enrolled during the COVID-19 pandemic.
The re-evaluation led to a shift in its plans toward sicker patients and a drop in membership numbers.
At a health care conference last week, Centene said the third-quarter medical loss rate (the percentage of premiums spent on health care) would be “slightly higher than” the second-quarter rate for Medicaid.
In July, the company said it expected medical costs to improve next year. States complete their re-evaluations Medicaid enrollment.
The Medicaid-focused insurer also offers commercial insurance plans and Medicare plans that cover seniors.
In its Tuesday outlook, Centene said it expects 20 cents to 30 cents of earnings per share to carry over from the third to the fourth quarter.
It also forecast third-quarter adjusted earnings per share of $1.31 to $1.41, below analysts’ estimates of $1.51 per share, according to LSEG data.
Still, the company reaffirmed its full-year earnings forecast of more than $6.80 per share. Analysts expect earnings of $6.83 per share in 2024. (Reporting by Sriparna Roy in Bengaluru; editing by Janane Venkatraman)
