(Bloomberg) — Centene Corp. shares fell the most in a year after the insurer released a projection for members in its Medicaid program that disappointed investors.
Membership in the joint state-federal health program for low-income people will be about 13 million this year, the insurer said at the Wells Fargo Healthcare Conference. The company had earlier forecast 13.6 million members by the end of 2024.
The drop means Centene will collect less in expected premiums to cover the medical costs of the people who remain on its plans. That’s driving pressure on a key gauge of expenses, called the medical-loss ratio, that investors watch closely.
Centene’s Medicaid business will have a higher medical-loss ratio in the third quarter than in the second, Chief Financial Officer Drew Asher said at the conference.
The shares fell as much as 9.3%, their biggest intraday loss since June 2023.
Source: Centene Plunges as Medicaid View Disappoints Street / BNN Blloomberg