Category: MPS- Curator

Medicaid and HHS news curated for our Medicaid health plan audience.

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MANAGED CARE – Centene Stock: Is CNC Outperforming the Health Care Sector?

MANAGED CARE – Centene Stock: Is CNC Outperforming the Health Care Sector?


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Alternative Headline: Centene Faces Stock Struggles

[MM Curator Summary]:  Centene stock lags over the past year despite strong earnings, weighed down by Medicaid membership declines.

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Centene Stock: Is CNC Outperforming the Health Care Sector?

Saint Louis, Missouri-based Centene Corporation (CNC) is a healthcare enterprise that provides programs and services to under-insured and uninsured families, and commercial organizations. Valued at a market cap of $27.6 billion, the company operates across all 50 states and serves millions of members with a focus on accessible, affordable, and high-quality healthcare. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and CNC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the healthcare plans industry. The company excels in providing cost-effective, community-based care that is culturally sensitive and locally tailored, giving it a competitive edge in underserved markets. As the largest Medicaid managed care organization in the U.S., it has a well-diversified membership base and operates efficiently at scale.

This healthcare company is currently trading 31.1% below its 52-week high of $80.59, reached on Sep. 3, 2024. CNC has fallen 6.6% over the past three months, outpacing the Health Care Select Sector SPDR Fund’s (XLV) 8.1% downtick during the same time frame.


However, in the longer term, CNC has declined 20.5% over the past 52 weeks, lagging behind XLV’s 7.7% drop over the same time frame. Moreover, on a YTD basis, shares of CNC are down 8.4%, compared to XLV’s 1.4% loss.   

To confirm its bearish trend, Centene has been trading below its 200-day moving average since early October, 2024, and has remained below its 50-day moving average since late May. 

On Apr. 25, Centene’s shares plunged 6.3% after its Q1 earnings release, despite delivering a better-than-expected performance. The company’s revenue improved 15.4% year-over-year to $46.6 billion and exceeded the consensus estimates by 7.2%. Moreover, its adjusted EPS of $2.90 advanced 28.3% from the year-ago quarter and came in 22.9% above analyst estimates. However, a decline in total membership primarily due to lower Medicaid membership might have raised investor concerns and led to its downward stock price movement. 

Centene has considerably lagged behind its rival, Molina Healthcare, Inc.’s (MOH) 4% decline over the past 52 weeks and 1.6% rise on a YTD basis. 

Looking at CNC’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 18 analysts covering it, and the mean price target of $75.19 suggests a 35.5% premium to its current price levels. 


On the date of publication,Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.



https://www.theglobeandmail.com/investing/markets/stocks/XLV-A/pressreleases/32826072/centene-stock-is-cnc-outperforming-the-health-care-sector/





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STATE NEWS – Arizona Governor Katie Hobbs Vetoes Medicaid Fraud Prevention Bill Amidst Political Clash

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Alternative Headline: Hobbs Vetoes Fraud Bill

[MM Curator Summary]:  Governor Katie Hobbs vetoed a Medicaid fraud prevention bill, triggering political backlash over alleged $3 billion in improper payments.

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Arizona’s Medicaid program has become a battleground for differing political ideologies as Governor Katie Hobbs vetoes a bill targeting Medicaid fraud. According to a press release from the Arizona Legislature, House Majority Leader Michael Carbone criticized the governor for blocking HB2449, a bill he sponsored aimed at bolstering fraud prevention in the state’s Medicaid system. Carbone claims that the bill would have closed existing loopholes and required more frequent eligibility checks to root out waste and ensure assistance reaches those in need.

Carbone stated, “Governor Hobbs just vetoed my bill that would have rooted out fraud and abuse in Arizona’s Medicaid program, and protect public healthcare resources for those who truly need them,” as reported in a Arizona House of Representatives. He condemned the Arizona Health Care Cost Containment System for allegedly squandering over $3 billion  in improper Medicaid payments due to lax eligibility verification. In his push against the governor’s decision, Control, asserted that similar strategies had been implemented successfully in other states like Arkansas and Texas, claiming these measures did not incur additional state expenses.

In her defense, Governor Hobbs highlighted the potential costs of implementing such safeguards, a point of contention with Carbone’s interpretation. Carbone argued that Hobbs’ actions reflect a preference for protecting state bureaucrats from additional work over safeguarding taxpayer dollars. This latest dispute comes in the wake of a 2023 effort by the Republican legislature to expedite the removal of ineligible people from the Medicaid rolls, a move Carbone says saved the state substantial funds.

Carbone’s language reflects a deep frustration with the governor’s stance, underscoring a perceived gap between Hobbs’ rhetoric on government spending and her legislative actions. “Arizona voters sent a loud message in 2024 that they are tired of business as usual. Governor Hobbs talks a big game about cleaning up wasteful government spending, but her actions show, that it is all talk,” Carbone expressed in the legislative Arizona House of Representatives press release. As the House Majority Leader representing Legislative District 25, which spans parts of Yuma, Maricopa, and La Paz Counties, Carbone’s stance reflects a broader conservative concern over fiscal management in public programs.

At the heart of the matter is a disagreement over the balance between fiscal responsibility and the administrative burden such measures might impose. With elections always around the corner, and voter sentiment a priority for both parties, the debate over Medicaid fraud legislation in Arizona is far from over. As these events unfold, the true costs, whether measured in dollars, bureaucratic workload, or the welfare of those the system is meant to serve, remain at the forefront of this ongoing political discourse.

https://hoodline.com/2025/05/arizona-governor-katie-hobbs-vetoes-medicaid-fraud-prevention-bill-amidst-political-clash/

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MANAGED CARE – AbsoluteCare Expands its Partnership with CareSource

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[MM Curator Summary]: CareSource inks deal with “value-based care” company to continue efforts to expand its footprint with duals.  

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, /PRNewswire/ — AbsoluteCare®, a value-based health care company, and CareSource Ohio are expanding their partnership to bring whole-person care to dual-eligible MyCare members who qualify for both Medicare and Medicaid. With a promise to go Beyond Medicine™, AbsoluteCare delivers comprehensive care and support to vulnerable and chronically ill members.

Through a dedicated interdisciplinary care team, AbsoluteCare addresses chronic medical conditions like congestive heart failure (CHF), chronic obstructive pulmonary disease (COPD), chronic kidney disease (CKD) or diabetes, as well as acute medical needs like flu, falls, infections and more. They integrate behavioral health care into their model, including substance use disorder support, as well as an intense focus on addressing social determinants of health (SDoH) challenges. They reach members where they are, whether the member prefers care and support inside an AbsoluteCare center or delivered to them at home. AbsoluteCare’s teammates are passionate about establishing relationships and building the trust needed to engage members in their health.

“We are excited to expand our partnership with AbsoluteCare to bring its innovative care model to more members in Ohio,” said Deirdra Yocum, Interim President, CareSource Ohio. “CareSource provides comprehensive, coordinated care that addresses all aspects of our members’ health and well-being. This collaboration aligns us to the long-term sustainability of Medicare and Medicaid through services that proactively meet members’ needs and improve their health outcomes.”

AbsoluteCare’s clinical care model aligns with CareSource Ohio’s vision to transform lives through innovative health care programs to include not only the treatment of medical conditions but also address the daily challenges members face, including homelessness, food insecurity, transportation, inequities in access to care and more. 

“AbsoluteCare and CareSource’s vision could not be more similar,” said Mike Radu, CEO of AbsoluteCare. “By expanding our already successful partnership to serve Ohio’s most vulnerable dual-eligible members, we can help to address health inequity and restore our neighbors to their full health.”

About CareSource
CareSource is a nonprofit, nationally recognized managed care organization with over 2 million members. CareSource administers one of the largest Medicaid managed care plans in the U.S. The organization offers health insurance, including Medicaid, Health Insurance Marketplace and Medicare products. As a mission-driven organization, CareSource is transforming health care with innovative programs that address the social determinants of health, prevention and access to care. 

About AbsoluteCare
Headquartered in Columbia, Maryland, AbsoluteCare is a leading value-based integrated health care provider. AbsoluteCare tends exclusively to the needs of the high-risk population who persistently represent a disproportionate amount of unnecessary utilization and cost. AbsoluteCare operates in 11 markets: Baltimore and Prince George’s County, MD; Chicago, IL; Akron, Cincinnati, Cleveland, Columbus, and Dayton OH; New Orleans, LA; and Philadelphia and Pittsburgh, PA. 

https://www.kron4.com/business/press-releases/cision/20250421PH68388/absolutecare-expands-its-partnership-with-caresource/

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STATE NEWS – New law raises Medicaid dental reimbursement rates in Arkansas for first time in 18 years

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[MM Curator Summary]: The new rates will add $22 million in annual Medicaid costs.

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LITTLE ROCK, Ark. – A new Arkansas law will require the Arkansas Medicaid Program to increase reimbursement rates for certain dental services.

The law looks to ensure that the underserved have the care they need and that dental providers continue accepting Medicaid by raising Medicaid reimbursement rates.

Terry Fiddler, the executive director of Arkansas Mission of Mercy, said his organization provides free dental clinics, most recently seeing hundreds of patients who need dental care.  

“The underserved individuals of Arkansas, the generational poverty,” Fiddler said. “With you and I, if we have a toothache, we go to the dentist and get taken care of. That’s not always possible for them.”

This law is tailored to boost reimbursement rates for oral surgeries, children and adults with special needs.

Fiddler said it’s been 18 years since a rate increase, leading to some dentists dropping Medicaid, but he hopes that it flips with this law.

“What’s going to happen, those providers who have dropped out of services, this will be an impetus for them to come back,” Fiddler said. “For those who have continued to do so but were on that ledge of dropping off, we’re hoping that all of these things will provide more to providers.”

A representative from the Division of Medical Services testified against the law earlier this month due to the fiscal impact. They said they’re not opposed to continuing to work with dentists to do targeted rate increases, but feel this law takes this out of their normal process.

They said this has a fiscal impact of about $7 million to the state share, with impact to the overall Medicaid budget being over $22 million.

“That’s a lot of money that we asked for, but they gave it to us, and I will promise you every penny will be well spent for the underserved of Arkansas,” Fiddler said.

Fiddler said on behalf of the underserved in Arkansas and the Arkansas State Dental Association, they thank Gov. Sarah Huckabee Sanders for signing this law.

https://www.kark.com/news/state-news/new-law-raises-medicaid-dental-reimbursement-rates-in-arkansas-for-first-time-in-18-years/