Centene posts $1.1B profit in Q1

Centene reported double-digit growth in profits for the first three months of 2023 and added more than 2 million members year over year, according to its first-quarter earnings posted April 25.

"Our updated 2024 adjusted EPS target incorporates thoughtful recalibration of several factors, including our updated view of Medicaid redeterminations, our 2024 Medicare bid strategy and high-impact investments in the business," CEO Sarah London said. "From this baseline, we remain confident in our ability to deliver 12 to 15 percent long-term adjusted earnings compound annual growth in the back half of the decade." 

Total revenues in the first quarter were $38.9 billion, up 4.6 percent year over year.

Total net earnings in the first three months of 2023 were $1.1 billion, up 33 percent since the same period last year.

The company raised its year-end adjusted EPS guidance to at least $6.40, driven by strong performance in Medicaid and ACA plans. Year-end revenues are projected to range between $144.5 billion and $146.5 billion.

The company's medical loss ratio was 87 percent in the first quarter and 87.3 percent during the same period last year. Days claims payable were 54 in the fourth quarter, compared to 53 a year ago.

As of March 31, Centene's total membership stands at more than 28 million, with Medicaid membership at 16.3 million enrollees. There are nearly 3.1 million exchange members, 437,000 commercial group members, 1.3 million Medicare Advantage and supplement members, and 4.5 million Medicare prescription drug plans. Medicaid and Medicare membership totals include 1.3 million D-SNP plans.

Centene's employee count is down 16 percent year over year, with 67,200 employees nationwide as of March 31.


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