Obamacare Leads Centene To $1.3 Billion Profit And A 2025 Revenue Boost
Centene reported first quarter profits of $1.3 billion as membership and premium revenue grew thanks ... More to a big increase in Obamacare enrollment, the health insurer said Friday, April 25, 2025. In this photo, the building housing Centene Corporation headquarters is seen Thursday, July 2, 2015, in Clayton, Mo. (AP Photo/Jeff Roberson)
Centene reported first quarter profits of $1.3 billion as membership and premium revenue grew thanks to a big increase in Obamacare enrollment, the health insurer said Friday.
Centene's enrollment in individual coverage under the Affordable Care Act, also known as Obamacare, grew what Centene calls its 'commercial marketplace' business to 5.6 million members from 4.3 a year-ago. That increase of more than two million health plan members helped overcome a decrease of more than 330,000 enrollees in Centene's Medicaid coverage for poor Americans.
The big jump in enrollees triggered Centene to increase its 2025 premium and service revenues guidance range by $6 billion to a range of $164.billion to $166 billion. Much of that increase, or $5 billion, is additional 'marketplace premium revenue due to outperformance in enrollment throughout the first quarter,' Centene, which sells an array of government subsidized health benefits, said. Meanwhile, Centene said 'outperformance in the Medicare Advantage annual enrollment period' will add $1 billion of additional premium revenue.
In the first quarter of this year, Centene's net income rose to $1.3 billion, or $2.63 per share, compared to $1.1 billion, or $2.17 in the year-ago period.
'For the first quarter of 2025, premium and service revenues increased 17% to $42.5 billion from $36.3 billion in the comparable period of 2024,' Centene said in its earnings report. 'The increase was primarily driven by premium and membership growth in the (prescription drug plan) business along with strong product positioning and overall market growth in the Marketplace business.'
Centene, which is a big national player in providing Medicaid benefits to poor Americans, saw Medicaid enrollment drop slightly to 12.9 million compared to 13.3 million in the year ago.
"Our first quarter results demonstrate the resiliency of Centene's platform and the progress we are making as an organization while navigating a dynamic policy landscape," said Centene's chief executive officer Sarah M. London. "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."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Trump announces $1,000 government-funded accounts for American babies
Donald Trump unveiled a federal program Monday providing $1,000 government-funded investment accounts for American babies, getting backing from top business leaders who said they plan to contribute billions more to an initiative tied to 'the big beautiful bill'. At a White House roundtable with over a dozen CEOs, including from Uber, Goldman Sachs and Dell Technologies, Trump relayed the details of 'Trump accounts' – tax-deferred investment accounts tracking stock market performance for children born between 2025 and 2029. 'For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,' Trump said. The accounts will be controlled by guardians and allow additional private contributions up to $5,000 annually. Trump called it 'a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation'. Related: Trump's 'big, beautiful' bill is built on falsehoods about low-income families | Brigid Schulte and Haley Swenson CEOs from major companies including Michael Dell, Dara Khosrowshahi of Uber, David Solomon of Goldman Sachs, and Vladimir Tenev of Robinhood committed billions for employees' children's accounts. Trump praised the executives as 'really the greatest business minds we have today' who are 'committed to contributing millions of dollars to the Trump account'. Mike Johnson, the House speaker, also at the roundtable, championed the program, saying: 'It's a bold, transformative policy that gives every eligible American child a financial head start from day one. Republicans are proud to be the party we always have been. It supports life and families, prosperity and opportunity.' The program passed the House as part of a massive budget bill but faces stiffer Senate Republican resistance over the broader package. The accounts cannot be implemented as a standalone program and depend entirely on passage of what Trump calls the 'one big, beautiful bill' that is 'among the most important pieces of legislation in our country's history', claiming it's 'fully funded through targeted reforms' including welfare changes and a proposed remittance tax. However, the congressional budget office last week found the bill would also add $2.4tn to the national debt over the next decade while cutting Medicaid and food assistance programs. The CBO analysis showed the bill, which passed the House by a single vote and no Democratic support, would leave 10.9 million more Americans without healthcare by 2034. The treasury-funded accounts, previously called 'Maga accounts' resemble existing 529 college plans but with lower contribution limits – leading some financial advisers to say the Trump accounts may not offer the best investment incentives. The move is also not without precedent: the United Kingdom operated a similar Child Trust Fund with government seed funding from 2002-2011 before discontinuing the program, while Singapore runs the Baby Bonus Scheme that includes government-matched savings accounts for children. Trump was optimistic about returns, saying beneficiaries would 'really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future'. Johnson warned that failure to pass the legislation would result in 'the largest tax increase in American history' and pushed for swift congressional action on what he called 'pro-growth legislation' that would 'help every single American'. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
35 minutes ago
- Yahoo
Social Security Advice: One Key Takeaway for All Retirees
Social Security is a lifeline for many retirees, but it's on shaky ground right now. With benefit cuts potentially coming, now is the time to start preparing. A few simple steps can help protect your retirement no matter what Social Security's future looks like. The $23,760 Social Security bonus most retirees completely overlook › Millions of older adults rely heavily on Social Security in retirement. Around 60% of current retirees say their benefits are a major source of income, according to a 2024 Gallup poll, while an additional 28% say it's a minor income source. While there's no harm in relying on Social Security to some extent, if I could give all Americans one piece of advice about Social Security, it's this: Have a backup plan. First, it's essential to note that Social Security is unlikely to disappear entirely. Many people are concerned about the program going bankrupt. However, while benefit cuts could be on the horizon, the program itself should still be a reliable source of income to some degree. Social Security is funded primarily through payroll taxes. Today's workers pay into the program through taxes, and that money is funneled to current retirees and other beneficiaries. But in recent years, that income hasn't been enough to cover all the benefits that need to be paid out. As a result, the Social Security Administration (SSA) has tapped its two trust funds to continue paying benefits in full. According to the latest projections from the SSA Board of Trustees, which were released in May 2024, those trust funds will likely run out by 2035. Now, this doesn't mean that Social Security itself is running out of money. Again, as long as workers keep paying payroll taxes, retirees will always receive some form of benefits. But unless lawmakers find some sort of solution in the next decade, benefit cuts could be a possibility. The SSA's latest trust fund projections date back over a year. A lot has changed since then, and there could be more potential changes coming that could impact Social Security. For example, President Trump has previously proposed eliminating income tax on Social Security benefits. While that could increase retirees' income in the short term, it would also mean there's less cash for the SSA to fund benefits. Tax cuts, in general, could also hurt Social Security. If the SSA has to take more than it had planned from the trust funds, those reserves could run out even sooner than 2035. Also, with less money coming in from taxes, the subsequent benefit cuts could be even more severe than expected. To be clear, benefit cuts are not a guarantee at this point. Lawmakers still have a few more years before the trust funds run out, and they could come up with a solution to protect the program. But when your retirement is on the line, it may be wise to avoid putting your financial future in the hands of Congress. If you still have some time before retirement, it could be smart to find ways to reduce your dependence on Social Security. That could mean simply saving more in your 401(k) or IRA, or perhaps picking up a side hustle or a source of passive income. Investing in dividend stocks or ETFs can also be a smart strategy to build your investment portfolio while also generating a source of passive retirement income. Investing even $200 per month can add up to more than $137,000 after 20 years, assuming you're earning a 10% average annual return on your investment. No matter your approach, diversifying your income so that you're not completely dependent on Social Security is a wise move right now. While the program isn't going away entirely, it doesn't hurt to be prepared just in case benefit cuts are on the horizon. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Security Advice: One Key Takeaway for All Retirees was originally published by The Motley Fool
Yahoo
43 minutes ago
- Yahoo
What Sen. Josh Hawley Wants from the One Big Beautiful Bill (for Medicaid)
Some would call it another perfect call. And as soon as Sen. Josh Hawley hung up the phone, the Missouri Republican rushed to social media to report on the "great talk" he just had and the promise President Trump made about the One Big Beautiful Bill, the cornerstone of his second term domestic policy agenda: "NO MEDICAID BENEFIT CUTS." Trump has said as much publicly, but the message still reassured the senator as Republicans on Capitol Hill search for savings to make up for federal revenue lost to tax cuts. Quickly emerging as the most vocal GOP opponent to Medicaid cuts, Hawley has warned his business-friendly colleagues that their mega bill amounts to a referendum: They can be either the party of the working class or the corporate C-suite. The president put it more bluntly. "People who cut Medicaid and Medicare lose elections," Trump told Hawley according to the senator. "My advice," he said in an interview with RealClearPolitics, "listen to the guy who won the popular vote." Asked about the conversation, White House spokesman Kush Desai repeated Trumps long stated policy preference. "The President has been clear-no cuts to Medicare, Social Security, or Medicaid," Desai said in a statement to RCP, adding that the bill "addresses waste, fraud, and abuse in government spending." Normally this would be the final word. Trump has remade the party in his image, and he gets his way more often than not. But the battle over Medicaid reform comes when the federal debt exceeds $36 trillion, and after Moodys downgraded the U.S. sovereign debt rating, and as interest payments to service that debt exceed federal spending on national defense. According to Congressional Budget Office estimates, Medicaid, the largest health U.S. insurance program, will cost nearly a trillion dollars annually within the decade. Hence the mocking all-caps rebuttal from Rep. Chip Roy. The Texas Republican wrote that he had his own "great talk," not with the president, but his children, who said, "STOP BORROWING MONEY TO PROP UP WASTEFUL SPENDING & TO SUBSIDIZE THE ABLE-BODIED OVER THE VULNERABLE." Replied Utah Sen. Mike Lee, one of the few remaining GOP fiscal hawks, "Your kids arent wrong." Such is the split that defines the modern GOP, as the old fiscal conservatives battle the new-right populists for control of the movement. The dry text of the tax bill doesnt make compelling reading. The intricacies of the legislation, and then all the outside analysis attempting to explain those details, can certainly be confusing. But the result of the fight, the direction the GOP takes, will be telling. "Were about to learn whether or not Republicans want to be a majority party," Hawley insisted. While the White House insists the mega bill "is the most essential piece of legislation currently under consideration in the entire Western World," the proposed spending cuts to Medicaid are starting to overshadow the new border security and tax cuts they were designed to pay for. Republicans now have the most consequential fight over health care since Obamacare repeal on their hands. And just like 2017, the margins are again slim; Majority Leader John Thune can afford to lose only two votes. But the party has changed considerably since then. With Trump at the helm during the last election, Republicans increased their voting share with every major demographic. The "multiethnic, multiracial, working class" coalition that former Florida Sen. Marco Rubio once envisioned seems within the GOPs grasp. Screwing it up by "considering" cuts to the social safety net, Hawley said, wouldnt only be "insane." He warns his party that it is "suicidal." This befuddles the likes of Speaker Mike Johnson, who defended the cuts in an interview with NBCs "Meet the Press" earlier this month by arguing that "4.8 million people will not lose their Medicaid unless they choose to do so." It isnt a cut, the speaker argues, so much as a structural reform to root out waste, fraud, and abuse. The House bill that Johnson shepherded requires able-bodied adults without dependents to work, study, or volunteer for at least 80 hours per month to keep their coverage. It also includes new eligibility requirements which Republicans say are meant to keep illegal immigrants off Medicaid. Another big reform, the bill would freeze so-called provider taxes, a practice employed by 49 states that the New York Times describes as a "Medicaid loophole" which allows individual states to use taxes to inflate their spending, thus increasing their federal reimbursement. The populist isnt opposed to everything House Republicans passed over to the Senate. Work requirements - Hawley said he supports them "wholeheartedly." And making illegal immigrants ineligible for benefits, he added, "Im absolutely for that 100%." The provider tax, however, he finds "problematic" and worries it could lead to the closure of rural Missouri hospitals. Congress has not yet reached the beginning of the end of the sausage-making (a fact that makes pinning lawmakers down difficult). The House version of the bill can and will change. Rather than picking apart that text, Hawley said he is focused on influencing the Senate bill and ensuring that "it is in line with the commitments that the president has consistently articulated." The general Hawley redline: "What I don't want to see, and what Im not going to vote for, is anything that will result in benefit cuts to folks who are otherwise eligible, and for working people, in my state." Even with slim majorities, Republicans have a free hand to pass the bill using budget reconciliation, a parliamentary process that requires 51 votes rather than the normal 60-vote supermajority. All the same, they are tied up in knots by a new more populist coalition. Warned Steve Bannon, an early architect of Trumpism, "MAGAs on Medicaid because theres not great jobs in this country." A familiar fracas has ensued. "The current budget is a rare, maybe once in a generation, chance for a significant Medicaid policy victory," opined the Wall Street Journal editorial board earlier this year. But to the horror of that business-friendly paper, Hawley and his Medicaid redline threatened to tie up the GOP. Wasnt this the same senator who as Missouri attorney general once joined a 2018 lawsuit to repeal the Affordable Care Act and its Medicaid expansion, they asked, dubbing the evolution "the Josh Hawley Medicaid Switcheroo." "This is not about Obamacare," Hawley replied when asked about that criticism. "This is about protecting working people and Medicaid." More than a million Missouri citizens rely on the program for insurance, and despite strong opposition from Republicans particularly in rural areas, the state voted through a ballot measure to amend the Constitution and expand Medicaid. "I represent the state of Missouri. I dont represent Wall Street," Hawley said referencing that recent history, "and I certainly dont represent the Wall Street Journal editorial board." He then added, "I'm sure that those who are in the business of making money by strip mining this country would love to gut Medicaid." Conservatives have long hoped to trim the social safety net. Some want steeper reductions. All in all though, there is a feeling in more orthodox corners of the GOP, like the conservative National Review, that the House bill represents a good compromise. In a recent editorial, that magazine opined that the cuts were more akin to "a modest series of tweaks" which will "not do much to alter its spending trajectory." According to the Congressional Budget Office, the House reforms will reduce Medicaid spending by about $723 billion over the next decade and reduce total enrollees in the program by 7.6 million. Hawley isnt deaf to those debt arguments. If Republicans really want to save money on healthcare, though, he said that his party ought to look to the president. More specifically, the senator pointed to Trumps proposed policies to cap the cost of prescription drugs and to close the so-called carried interest loophole. Those he says, "would save a bunch of money." Of course, as Hawley well knows, those proposals would kick up their own firestorms on the right. But his point remains: There are other avenues. "If people are serious about wanting to actually save money, theres all kinds of ways to do it," Hawley said. "But my point is, lets not tell working people that we just cant help them. 'Sorry! Were going to have to take away your benefits because theres a corporate guy out here who wants his thing to be permanent!" That is the old GOP way of doing things, and in his estimation, it leads to political obscurity. "If were not interested in being a majority party, then we'll keep doing the things that the partys done for decades," Hawley concluded, "And you know, well bow to corporate interests and let them write the bill." His suggestion, the one giving Republican brass fits right now, is instead to "just go back and listen to what Donald Trump said on the trail over the last year." Philip Wegmann is White House correspondent for RealClearPolitics.
