Centene in the headlines: 8 recent updates

Centene grew its revenue 15 percent over the past year but lost $213 million in the last three months of 2022. The payer also settled overbilling allegations in another state and divested Magellan Specialty Health. 

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Here are eight updates about the St. Louis-based payer Becker’s has reported since Jan. 9. 

  1. Centene expects to lose millions of members in the redeterminations process and is focused on shifting members no longer eligible for Medicaid coverage to its marketplace offerings, executives said on a Feb. 7 investor call.
  2. The payer posted a net loss of $213 million in the last three months of 2022 despite reporting 15 percent growth in total revenue year over year, according to its fourth quarter earnings report.
  3. Centene agreed to pay Indiana more than $66 million to settle allegations it overbilled the state’s Medicaid program for pharmaceutical services. Indiana is at least the 13th state Centene has paid to settle overbilling allegations.
  4. Centene completed its divestiture of Magellan Specialty Health to healthcare administration company Evolent Health, receiving $660 million in closing costs. The payer will receive $150 million in cash and Evolent common stock in 2024 if certain performance metrics are achieved.
  5. HHS and CMS have spoken to Illinois officials to discuss “serious issues” raised in a November report about Centene’s foster care contract performance. The scope of the federal inquiry is not clear but was confirmed by Illinois officials and a CMS spokesperson, according to the Chicago Sun-Times.  
  6. Former Centene President and COO Brent Layton was appointed to Sharecare’s board of directors and audit committee.
  7. Centene is the second largest insurance company in the world by net premiums, according to AM Best’s ranking of global insurers. The payer advanced two spots from last year.
  8. Centene and Springfield, Mo.-based CoxHealth will goout of network Feb. 16 after the two sides were unable to reach a new contract agreement. Centene subsidiary Home State Health administers Missouri’s specialty health plan for current and former foster children and individuals receiving adoption assistance payments. 
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