July 25, 2017
Health insurer Centene announced an increase in the company’s profit projections for the remainder of 2017 after ACA marketplace participation helped boost second quarter profits beyond expectations.
During an earnings call, Michael F Neidorff, chairman and CEO at Centene, told reports that marketplace performance exceeded the company’s expectations in the second quarter.
“We are pleased with the strong second quarter performance across our product lines,” he said. “The Marketplace business continues to be particularly strong, confirming our business as usual approach.”
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During the call, Mr Neidorff stated that the company has 1.1 million ACA exchange members. The company also covers a significant amount of low-income and disabled patients under Medicaid.
Success under the ACA has lifted the company’s 2017 forecasts. Profit increased 49% year over year to 254$ million in the second quarter, with revenue increasing by 10%.
This news comes despite recent efforts to repeal the ACA. This morning, President Trump urged Republican Senators to move on a “repeal or repeal and replace.”
“ObamaCare is torturing the American People,” President Trump tweeted. “After 7 years of talking, we will soon see whether or not Republicans are willing to step up to the plate.”
However, a recent analysis by the Kaiser Family Foundation (KFF) found that the ACA may not currently be as torturous as the President contends.
“Concerns about the stability of the individual insurance market under the ACA have been raised in the past year following exits of several insurers from the exchange markets, and again with renewed intensity in recent months as debate over repeal of the health law has picked up,” Larry Levitt, MA, senior vice president for special initiatives at KFF, and Cynthia Cox, associate director at KFF, recently wrote. “Early results from 2017 suggest the individual market is stabilizing and insurers in this market are regaining profitability. Insurer financial results show no sign of a market collapse.” —David Costill