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[MM Curator Summary]: A single state Medicaid win- CA- upped Centene earnings per share and the companies overall financial outlook.
Clipped from: https://www.forbes.com/sites/brucejapsen/2023/01/03/centene-bounces-back-with-california-medicaid-contracts/?sh=6446c0171a39
Centene has landed several new contracts to administer Medicaid benefits in California, boosting the … [+] health insurer’s financial outlook after the recent loss of some other government business. The building housing Centene Corporation headquarters is seen Thursday, July 2, 2015, in Clayton, Mo. (AP Photo/Jeff Roberson)
ASSOCIATED PRESS
Centene has landed several new contracts to administer Medicaid benefits in California, boosting the health insurer’s financial outlook after the recent loss of some other government business.
With the Tuesday announcement that the California Department of Health Care Services has selected Centene subsidiary Health Net of California for “direct contracts in Los Angeles and Sacramento counties,” Centene has raised its projected 2024 adjusted earnings per share “floor to $7.15 from $7.00.” The state’s decision increases the “number of direct county contracts by DHCS to 10” in California.
“We are pleased that DHCS selected us to continue serving Medi-Cal members in 10 counties across the state, including as prime carrier in Los Angeles County,” Cemtene chief executive Sarah London said. “We believe their decision is in the best interest of millions of members, and we look forward to working with DHCS to address health disparities and improve how healthcare is delivered to Medi-Cal members across the state.”
Medicaid contracts are huge for Centene, which is one of the nation’s largest administrators of health benefits for poor Americans. Government-subsidized health insurance remains Centene’s sweet spot and the California news is welcome after Centene reportedly lost out a major western region Tricare contract from the U.S. Defense Department.
The new California contracts will begin January 1, 2024. “In total, Health Net will provide Medi-Cal managed care services in Los Angeles, Sacramento, Amador, Calaveras, Inyo, Mono, San Joaquin, Stanislaus, Tulare and Tuolumne counties,” Centene said in a statement.
It’s the first major business award Centene has announced since a management shake up less than a month ago.
In December, London announced some key changes to her management team, elevating Ken Fasola to become president of the health insurer while promoting others into new roles in her management team.