BUZZ-Centene falls on higher Q4 Medicaid costs

Reuters
05 Feb
BUZZ-Centene falls on higher Q4 Medicaid costs

** Shares of health insurer Centene CNC.N fall 3.50% to $62.55

** Co reports Q4 medical loss ratio - the percentage of premiums spent on medical care - of 93.4% in its Medicaid business

** Costs for health insurers which offer Medicaid plans for lower income individuals have been elevated due to an influx of sicker patients after the end of pandemic era policy

** "We think the stock reaction reflects the fact that the core Medicaid medical loss ratio came in worse than expected in Q4"- Stephens analyst Scott Fidel

** Co however beats Q4 adj.profit estimates helped by a settlement related to its plans it offers through the Affordable Care Act

** Reports Q4 adj.profit of 80 cents per share, beating estimates of 49 cents per share as per data compiled by LSEG

** Co leaves its forecast of adj. 2025 profit of greater than $7.25 per share unchanged

** CNC fell 18.4% in 2024

(Reporting by Sneha S K)

((Sneha.SK@thomsonreuters.com;))

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