Centene Corporation increases net income | Insurance business America Life & Health Centene Corporation increases net income
The main growth factors are
life and health
Written by Terry Ganquanco
Healthcare insurance provider Centene Corporation released its third quarter 2024 earnings report with strong revenue growth.
Centene’s performance for the quarter is as follows:
metric
Q3 2024
Q3 2023
Premium and service revenue
$37 billion
$35 billion
total revenue
$42 billion
$38 billion
Operating profit
$665 million
$735 million
Investments and other income
$432 million
$214 million
net profit
$710 million
$475 million
Net income attributable to Centene
$713 million
$469 million
The healthcare company said: “Premiums and services revenue for the third quarter of 2024 increased 6% to $36.9 billion from $35.0 billion in the 2023 comparable period. This increase was primarily due to higher Medicaid rates; “This was driven by strong product positioning and overall market growth, but primarily due to redeployment and recent divestitures in the Other segment. This was partially offset by a decline in Medicaid membership.
“The medical benefit rate of 89.2% in the third quarter of 2024 represents an increase from 87.0% in the 2023 comparative period. This increase is primarily due to the redetermination process as we continue to align with states. This is due to improved accuracy in Medicaid’s sharper rates. This increase was also driven by the impact of Medicare star ratings. ”
Meanwhile, CEO Sarah M. London (pictured) said Centene’s diversified portfolio helped it navigate the dynamic conditions of the quarter.
“We remain confident in our full-year outlook for adjusted diluted EPS of over $6.80 and are well-positioned to capture the strong long-term growth opportunities we see in government-backed healthcare.”
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