Health Insurer Centene Reports Better-Than-Expected Profits
CEO Michael Neidorff said the company, which recently closed its $6 billion takeover of Health Net, is "achieving margins at the higher end of our targeted range" on its plans offered on the health law marketplace. Also, news outlets report on developments with Anthem and Express Scripts.
Reuters:
Health Insurer Centene's Profit Beats As Medical Costs Fall
U.S. health insurer Centene Corp reported a better-than-expected quarterly profit, helped by lower medical costs in certain patient populations and the acquisition of rival Health Net. The company's health benefits ratio, or the amount it spends on medical claims compared with its income from premiums, improved to 88.7 percent in the first quarter from 89.9 percent a year earlier. (Penumudi, 4/26)
Modern Healthcare:
Centene Profiting From ACA Plans, Medicaid Expansion
UnitedHealth Group may be abandoning most of the Affordable Care Act's insurance exchanges due to steep losses. But Centene Corp. is doing just fine in the marketplaces. Centene, which just closed on its $6 billion takeover of Health Net last month, did not disclose its profit margin on the ACA exchange plans, but it is “achieving margins at the higher end of our targeted range,” Centene CEO Michael Neidorff said on a call with investors and analysts Tuesday. UnitedHealth, by comparison, estimates ACA losses north of $1 billion for 2015 and 2016. (Herman, 4/26)
Bloomberg:
Anthem Profit Beats Estimates As Insurer’s Enrollment Climbs
Anthem Inc., the No. 2 U.S. health insurer, posted first-quarter profit that beat analysts’ estimates as medical membership increased. Earnings were $3.46 a share, excluding some items, Anthem said Wednesday in a statement, compared with the $3.32 average of 19 predictions compiled by Bloomberg. (Tracer, 4/26)
Reuters:
Express Scripts CEO Aims To Keep Anthem As A Customer
Pharmacy benefit manager Express Scripts Holding Co's top executive said on Tuesday that despite its contract dispute with Anthem Inc over pharmaceutical price cuts Anthem says it is owed, it aims to keep the health insurer as a customer. "We want to make clear that we are confident that we have negotiated in good faith," Express Scripts Chief Executive Officer George Paz said during a conference call with analysts to discuss the company's first-quarter earnings, which were announced Monday evening. (Humer, 4/26)
