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Centene Expanding ACA Exchange Plans in 10 States

Analysis  |  By Steven Porter  
   August 14, 2019

The company, led by Michael Neidorff, has expressed confidence in its business strategy despite uncertainty over the ACA's future.

Centene Corp. said Tuesday that it aims to expand the health plans it offers on the Affordable Care Act exchanges in 10 states in 2020.

The move reflects the company's confidence in the future of the markets created by the Obama-era legislation, despite ongoing attempts by the Trump administration to have the law invalidated in its entirety.

Michael F. Neidorff, Centene's chairman, president, and CEO, said his company is proud of its status as the largest provider of ACA exchange health plans and will adapt to meet market demands.

"The need for affordable, high-quality healthcare has never been more urgent, and we will continue to demonstrate disciplined execution, agility and capacity to successfully navigate industry changes to the benefit of our members, customers and shareholders," Neidorff said in a statement Tuesday.

Centene said it served about 1.9 million exchange members across 20 states, as of June 30. The markets in which it plans to expand, pending regulatory approval, are Arizona, Florida, Georgia, Kansas, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Washington.

The announcement comes after Centene posted second-quarter adjusted earnings per share of $1.34 this year, up 49% from a year prior. It comes also as Centene looks to finalize its planned acquisition of one of its major competitors, WellCare Health Plans, in a proposed deal that some industry stakeholders warn could undermine competition.

Related: Undaunted by Trump's ACA Threats, Centene Plans to Forge Ahead

Related: Centene Revenues Grow 30%, Membership Up 2.2M

Related: Humana Swats Down Rumors That It Wants Centene

Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.

Photo credit: KIEV, UKRAINE - Dec 11, 2018: Centene Corporation Insurance company logo seen displayed on smart phone. - Image / Editorial credit: IgorGolovniov / Shutterstock.com


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