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Continued uncertainty caused by the emergence
of coronavirus variants and new infection outbreaks in parts of
the United States with low vaccination rates led rival health
insurers, such as UnitedHealth Group Inc and Anthem Inc, to be
prudent about their 2021 growth forecasts.
Centene said demand for healthcare services was above normal
levels at its Obamacare business that sells health plans on
online marketplaces created by the Affordable Care Act, due to
pent-up demand from previously postponed services.
"We are monitoring COVID variants closely as the pandemic
continues to evolve," Chief Executive Officer Michael Neidorff
said.
The insurer's health benefits ratio — the amount it spends on
medical claims compared with its income from premiums — worsened
to 88.3% in the second quarter from 82.1% a year earlier.
On an adjusted basis, the company earned $1.25 per share,
missing estimates of $1.39 per share, according to Refinitiv
IBES data.
During the quarter ended June 30, Centene said it recorded a
legal settlement expense of about $1.25 billion, or $1.78 per
share.
This included nearly $144 million in settlements in June with
Ohio and Mississippi, related to claims the company overcharged
the states' Medicaid programs for pharmacy benefit management
services. (https://reut.rs/3iYvvJw)
Centene raised its 2021 revenue forecast to between $123.3
billion and $125.3 billion, from its previous outlook of $120.1
billion to $122.1 billion.
(Reporting by Manojna Maddipatla in Bengaluru; Editing by
Shounak Dasgupta)
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