Centene's profits tied to exchange business rise
As other major insurers have exited the marketplace, Centene in June 2017 announced it would expand its footprint in 2018.
Strong 2017 marketplace performance exceeded Centene's expectations in the second quarter, according to the insurer in releasing its second quarter results.
"We are pleased with the strong second quarter performance across our product lines," said Centene Chairman and CEO Michael F. Neidorff. "The marketplace business continues to be particularly strong, confirming our business as usual approach."
[Also: Centene moves into exchange market in 40 counties in home state of Missouri]
On the earnings call Tuesday hours before the Senate began debating the repeal and replacement of the Affordable Care Act, Neidorff said he was confident congressional leaders wouldn't pull the plug on people who have gained health coverage over the last three years, according to CNBC.
As other major insurers have exited the marketplace, Centene in June 2017 announced it would expand its footprint in 2018.
Centene will enter the individual exchange market in Kansas, Missouri and Nevada, and expand its presence in six states where it is already doing business: Florida, Georgia, Indiana, Ohio, Texas, and Washington.
[Also: Centene to expand exchange footprint by offering plans in three additional states]
Revenues increased by 10 percent to $12 billion from this quarter to the same period last year.
Centene reported profit of $254 million for the three months of 2017 ending June 30, compared to $170 million for the same three months in 2016. For the six months ended June 30, profits were $393 million this year compared to $154 million last year.
[Also: Centene commits to ACA exchanges for 2018, basks in 69% revenue growth]
Managed care membership of 12.2 million represented an increase of 788,300 members or 7 percent, compared to the second quarter of 2016.
Twitter: @SusanJMorse
