Centene posted $738 million in net income during the third quarter and awarded Cigna's Express Scripts a PBM contract, according to the company's earnings report released Oct. 25.
Beginning in 2024, Express Scripts will administer pharmacy benefits for 20 million Centene members and provide access to its network of retail pharmacies.
"Our strong third quarter and year-to-date results provide Centene with positive momentum as we move towards 2023," CEO Sarah London said. "Selecting our future PBM partner represents a major Value Creation Plan milestone and positions us to capture significant value for our members, partners, and stakeholders in 2024 and beyond."
Total revenues increased 11 percent to $35.9 billion from $32.4 billion year over year and were driven by Medicaid and Medicare growth, along with the acquisition of Magellan Health. Total revenues for 2022 are nearly $109 billion. The company's 2022 earnings outlook is between $142.7 billion and $144.7 billion.
Operating expenses in the third quarter totaled $35.4 billion, an 11.1 percent increase from $31.9 billion year over year.
Net earnings in 2022 are $1.4 billion, with $738 million from the third quarter.
Total membership is 26.8 million people, including 15.7 million Medicaid members, 2.5 million commercial and 1.5 million Medicare.