Centene’s prescription drug plan enrollment is driving Medicare performance, contributing about half of the segment’s revenue, according to an Oct. 29 earnings call.
Centene’s premium and service revenue reached $44.9 billion in the third quarter of 2025.
Medicare prescription drug plan membership was 7,972,500 in third-quarter 2025, versus 1,013,200 for Medicare, inclusive of Medicare Advantage and supplements.
“We are pleased to have maintained strong Medicare segment results, including positioning PDP well to achieve results better than the 1% pretax margin guidance we began the year with,” Centene CEO Sarah London said. “PDP continues to outperform in 2025, but you can assume we would not guide to a similar level of outperformance as we step into 2026, making this a year-over-year headwind as we set initial guidance.”
The company’s medical cost ratio reached 92.7%, in part due to the Inflation Reduction Act’s effect on Medicare Part D prescription drug plans. The health benefits ratio for Medicare, including PDPs, was the greatest out of all the product categories at 94.3% for the quarter.
“Note that these dynamics are even more pronounced now that PDP is half of our Medicare segment revenue,” Ms. London added.
Despite Centene’s robust Part D membership, the insurer plans to scale back on its PDP offerings, according to KFF.
