"Centene's revenue grew year-over-year, climbing from $46.6 billion to $49.9 billion in the quarter, even as its marketplace book shrank by more than a third. When prices rise enough, fewer paying customers can still mean more money on the top line."
"The people who held on tended to be older, sicker, and managing chronic conditions they couldn't afford to leave untreated. Insurers call this 'adverse selection,' and you can see it directly in Centene's numbers."
Centene Corporation experienced a significant drop in Affordable Care Act marketplace membership, losing 2 million customers. Despite this, the company reported $1.5 billion in net earnings and raised its profit guidance. The increase in revenue from $46.6 billion to $49.9 billion was attributed to premium hikes averaging 20 to 26 percent. The remaining customers were older and sicker, leading to adverse selection, as younger, healthier individuals left the market after subsidies expired.
Read at 24/7 Wall St.
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