Summary of Centene Conference Call - September 11, 2025 Company Overview - **Company**: Centene Corporation (NYSE:CNC) - **Event**: Conference at the DB Healthcare Summit - **Speakers**: Sarah London (CEO), Drew Asher (CFO) Key Industry Insights Medicaid and Marketplace - **Full-Year Forecast**: Reaffirmed diluted EPS guidance of $1.75 for 2025 [3] - **Medicaid Results**: Positive results for July and August support the Health Benefit Ratio (HBR) improvement trajectory [4] - **Health Insurance Marketplace**: Successfully refiled rates covering 95% of membership for 2026, with most approvals expected by the end of the month [4][11] - **Risk Adjustment Headwinds**: $2.4 billion risk adjustment headwind and $200 million back half pressure remain in estimates [6][7] - **Utilization Trends**: Steady utilization in the Marketplace; updates on risk adjustment expected by the Q3 call [7] Medicare Segment - **Improvement Expectations**: Anticipated $700 million improvement in the Medicare segment, with STARS performance aligning with expectations [4] - **Break-Even Target**: On track to achieve break-even in Medicare Advantage by 2027 [4] - **Part D Performance**: Strong performance in Part D with 7.8 million members, below national benchmarks for low-income populations [71] Market Dynamics - **Sustainability of Marketplace**: The market is expected to remain sustainable even if enhanced subsidies expire, with potential growth from uninsured populations [17] - **Enrollment Projections**: Anticipated market contraction of 15% to 50% due to the expiration of enhanced Advanced Premium Tax Credits (APTCs) [64] Financial Performance and Guidance - **2026 Earnings Outlook**: Focus on margin recovery across Medicaid, Medicare Advantage, and Marketplace; specific guidance for 2026 not provided yet [58][60] - **Goodwill Evaluation**: Accelerated evaluation of goodwill due to market cap drop; no significant downstream impacts expected [74][75] - **Capital Deployment**: Priorities include funding organic growth, managing costs, and exploring share repurchase and M&A opportunities [76] Operational Strategies - **Cost Management**: Ongoing efforts to optimize discretionary spending and improve operational efficiency [78] - **Long-Term Margin Structure**: Confidence in margin improvement opportunities across all three business lines, with a focus on maintaining competitive margins [80] Additional Considerations - **Regulatory Changes**: Monitoring the impact of OB-3 and other regulatory changes on long-term margin structures [80] - **State Partnerships**: Positive engagement with state partners regarding rate increases and benefit design changes [39][40] This summary encapsulates the key points discussed during the Centene conference call, highlighting the company's strategic focus, financial outlook, and operational challenges within the healthcare industry.

Core Viewpoint - Centene Corporation, a major healthcare provider, has experienced significant stock declines due to unexpected enrollment trends and rising patient costs, leading to a withdrawal of its earnings guidance for 2025 [5][6]. Company Overview - Centene Corporation is based in Saint Louis, Missouri, and operates as a healthcare enterprise, providing services to under-insured and uninsured families, commercial organizations, and military families [1]. - The company has a market capitalization of $15.3 billion and operates through various segments including Medicaid, Medicare, Commercial, and Other [1][2]. Stock Performance - Centene's stock has dropped 59.5% from its 52-week high of $77.29, reached on September 17, 2024, and has declined 43.7% over the past three months [3]. - Year-to-date, the stock has decreased by 48.4% and has fallen 56% over the past 52 weeks, significantly underperforming the Health Care Select Sector SPDR Fund (XLV), which only saw a marginal dip [4]. Earnings Guidance and Market Reaction - On July 2, 2025, Centene's stock plummeted 40.4% in a single trading session after the company withdrew its 2025 earnings guidance, citing unexpected enrollment trends and rising patient costs [5]. - The company reduced its adjusted earnings outlook by $2.75 per share, resulting in a loss of approximately $1.8 billion in projections [5]. Operational Challenges - Centene highlighted rising medical costs in its Medicaid business, particularly in behavioral health and high-cost drug categories, as significant pressure points [6]. - The company is adjusting its 2026 ACA rates to reflect higher morbidity assumptions and plans to implement corrective pricing strategies across most states, raising concerns about the sustainability of ACA economics [6].

Centene Corporation (NYSE: CNC ) is one of the largest managed care companies in the United States, specializing in government-sponsored healthcare programs. They serve over 27 million members nationwide through a range of services, including Medicaid, Medicare Advantage, the Affordable CareI am an investment author with passion for finance and global markets. I enjoy gearing toward economic analysis, specifically on a macro level. Through current and forward looking market trends, fundamental and technical ...

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Centene (CNC) To Contact Him Directly To Discuss Their Options If you are a long-term stockholder in Centene between December 12, 2024 to June 30, 2025 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Marion Passmore directly at (212) 355-4648. NEW YORK, Sept. 09, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder ri ...

NEW YORK--(BUSINESS WIRE)---- $CNC #CNC--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Centene Corporation ("Centene†or the "Company†) (NYSE: CNC) and reminds investors of the September 8, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm. ...

NEW YORK , Sept. 8, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Centene Corporation (NYSE: CNC). ...

Core Viewpoint - A class action lawsuit has been filed against Centene Corporation for allegedly misleading investors regarding its revenue outlook and growth projections during the specified class period from December 12, 2024, to June 30, 2025 [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of all individuals and entities that purchased Centene securities during the class period [1]. - Investors have until September 8, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit [1]. Group 2: Allegations Against Centene - The complaint alleges that Centene created a false impression of having reliable information about its projected revenue and growth while promoting enrollment rates and low morbidity [3]. - On July 1, 2025, Centene withdrew its 2025 guidance, revealing that its market growth across 22 states was lower than expected, leading to a reduction in guidance to approximately $1.8 billion or an adjusted diluted EPS of $2.75 [4]. - Following this announcement, Centene's stock price dropped from $56.65 per share to $44.78 per share, a decline of over 40% [4].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Centene Corporation due to misleading statements regarding the company's enrollment and morbidity rates, which led to a significant decline in stock price [4][6]. Group 1: Legal Investigation - Faruqi & Faruqi is reminding investors of the September 8, 2025 deadline to seek the role of lead plaintiff in a federal securities class action against Centene [4]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [5]. Group 2: Company Performance and Stock Impact - Centene provided positive statements while concealing adverse facts about its enrollment and morbidity rates, leading to investor skepticism [6]. - On July 1, 2025, Centene withdrew its 2025 guidance, stating that its market growth across 22 states was lower than expected, resulting in a revised guidance of approximately $1.8 billion or an adjusted diluted EPS of $2.75 [6]. - Following this announcement, Centene's stock price plummeted from $56.65 per share to $33.78 per share, marking a decline of 40.4% [7].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Centene Corporation securities between December 12, 2024, and June 30, 2025, of the September 8, 2025, deadline to become lead plaintiffs in a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Centene securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court by September 8, 2025, to serve as lead plaintiff [2]. - The lawsuit alleges that Centene's management provided misleading information regarding the company's revenue guidance and earnings per share for the 2025 fiscal year, while concealing adverse facts about enrollment and morbidity rates [4]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in this area [3]. - The firm has secured significant settlements for investors, including over $438 million in 2019 alone, and has been consistently ranked among the top firms for securities class action settlements since 2013 [3].

Core Viewpoint - A lawsuit has been filed against Centene Corporation and its senior executives for potential violations of federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, following misleading financial guidance and subsequent stock price decline [1][2][4]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of New York, titled Lunstrum v. Centene Corporation, et al., No. 25-cv-05659 [2]. - Investors have until September 8, 2025, to request to be appointed to lead the case [2]. Group 2: Company Background - Centene Corporation is a healthcare company that provides services to consumers enrolled in government-sponsored healthcare programs such as Medicaid and Medicare, as well as those purchasing insurance under the Affordable Care Act [3]. Group 3: Financial Guidance and Market Performance - On December 12, 2024, Centene announced financial guidance for fiscal year 2025, claiming stability in earnings despite challenges [4]. - The company increased its 2025 guidance on February 4, 2025, citing enrollment overperformance, and again on April 25, 2025, due to strong growth in enrollment and retention [4]. - Contrary to these claims, the market experienced lower than expected enrollment growth and increased morbidity rates [4]. Group 4: Stock Price Reaction - On July 1, 2025, Centene withdrew its previous guidance after an independent actuarial report revealed lower than expected market growth and higher morbidity rates in 22 of the 29 states it serves [5]. - Following this news, Centene's stock price plummeted by $22.87 per share, a decline of over 40%, from $56.65 on July 1, 2025, to $33.78 on July 2, 2025 [5].