Centene reported $1.3 billion in earnings during the first quarter of 2025, which slightly beat out the $1.2 billion the company posted in the prior year quarter, the insurer said on Friday.
Seeing even greater growth was revenue, which hit $46.6 billion in the quarter, up substantially from the $40.4 billion Centene brought in a year ago.
"We are pleased to reiterate our full year 2025 adjusted diluted earnings per share outlook of greater than $7.25 and continue to see attractive opportunities to grow from the strength of our core businesses in the years to come," said Centene CEO Sarah London.
London voiced optimism that Republican proposals for Medicaid cuts will not happen. Centene's business is heavily based in the managed Medicaid market.
"First, we do not see broad support for benefit cuts in Medicaid from either the White House or from Congress," London said. "In fact, over the last few months, we have witnessed an increase in bicameral Republican members objecting to major Medicaid reforms."
WHAT'S THE IMPACT
Despite posting strong revenue, shares of Centene fell in the premarket on Friday after the company indicated a slight increase in its outlook for medical expenses, according to Seeking Alpha.
Membership reached 27.9 million during the quarter, with close to 13 million people enrolled in Medicaid and about 5.6 million in Affordable Care Act marketplace plans. Its Medicare prescription drug plans boasted 7.7 million members, and about 1 million were enrolled in its Medicare Advantage and supplement plans.
The insurer noted that one of its subsidiaries, SilverSummit Health Plan, was selected by the Nevada Department of Health and Human Services to continue to provide services for its Medicaid managed care program. For the first time, the program will include expansion of Medicaid Managed Care into rural and frontier service areas, which were previously fee-for-service.
Subject to state approval, the contract is expected to begin in January 2026 and has a five-year term, with the option of a two-year extension, for a total of seven possible contract years, said Centene.
Another of its subsidiaries, Meridian Health Plan of Illinois, was selected by the Illinois Department of Healthcare and Family Services to continue providing Medicare and Medicaid services for dually eligible members in the state through a Fully Integrated Dual Eligible Special Needs Plan. That contract is expected to begin in January 2026 and has a four-year term, with optional extensions of six months to five and a half years.
Centene reiterated its earnings guidance, expecting at least $7.25 per share.
THE LARGER TREND
Last summer, a research brief by Stephens reported that Centene will exit the Medicare Advantage market in at least six states in 2025. The six states are Alabama, Massachusetts, New Hampshire, New Mexico, Rhode Island and Vermont. These states account for about 3% of Centene's Medicare Advantage membership.
A couple of months later, Centene joined the list of insurers that are suing the Centers for Medicare and Medicaid Services over the 2025 Medicare Advantage Star Ratings.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.