During an Oct. 27 earnings call, Centene CEO Sarah London said the company’s Medicare Advantage business is on track to break even in 2026, one year earlier than expected.
In recent years, Centene has been working toward breaking even in the MA space. Ms. London said both MA and Part D performance exceeded expectations in the third quarter. Overall Medicare premium and service revenue was nearly $11.3 billion for the quarter, up 20% year over year.
Ms. London said the company anticipates lower MA membership in 2027.
“We made changes to the way we are going to market for Medicare Advantage in 2027, focusing our efforts on populations and geographies where we can provide differentiated products that create the most value for our members and the communities we serve,” Ms. London said, adding that the approach “will allow us to advance margin expansion in 2027 and beyond.”
Centene is downsizing its MA footprint for 2027, exiting Hawaii, Tennessee and Oklahoma markets, according to CMS data. The insurer is still offering standalone prescription drug plans in those states.
Centene recently filed its own lawsuit against CMS over its 2027 MA star ratings, claiming it will miss out on $448 million more in 2028 quality bonus payments and rebate retention as a result. Based on the ratings, Ms. London said that roughly 42% of members are in plans with at least 3.5 out of 5 stars.
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