Legislative changes may impact Medicaid enrollment and Medicare Advantage (MA) operations. Therefore, Centene Corp (CNC.N) lowered its 2024 adjusted profit projection on Tuesday.
After pandemic relief measures end next year, the firm anticipates Medicaid enrollment and MA business to plummet.
Centene expects a 2024 adjusted profit above $6.60 per share, down from $7.15.
CMS warned in February that its MA business may temporarily lose money in 2024 after lowering plan star ratings in October.
Despite achieving first-quarter profit estimates, larger competitors UnitedHealth (UNH.N) and Elevance (ELV.N) shares dipped earlier this month on market fears about growing medical spending.
Centene’s first-quarter health benefits ratio was 87%, compared to Refinitiv IBES’s 87.26%.
Centene earned $2.11 per share without adjustments versus $2.09.
From $6.25 to $6.40 per share, the corporation anticipates its private health insurance business to grow this year.
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