ST. LOUIS, Feb. 24, 2025 /PRNewswire/ -- Centene Corporation (NYSE: CNC) ("the Company") announced today the appointment of Kenneth Y. Tanji to the Centene Board of Directors, effective February 20, 2025. Mr. Tanji will serve on the Company's Audit and Compliance Committee. The appointment of Mr. Tanji expands Centene's Board of Directors to 12 members.Mr. Tanji's finance acumen spans more than three decades and includes deep knowledge of capital optimization strategies, strategic acquisitions, JV partnersh ...

Membership Growth - Year-end membership reached 28.6 million, an increase of 1.1 million members, or 4% over 2023[282] - Managed care membership increased by 1.1 million, or 4%, from December 31, 2023, to December 31, 2024, totaling 28.6 million members[302] - Medicare PDP membership increased by 50% year-over-year, while Medicare Advantage membership declined by 13%[295] Revenue Performance - Total revenues for 2024 were $163.1 billion, representing 6% growth year-over-year[282] - Total revenues for the year ended December 31, 2024, increased by 6% to $163.1 billion, driven by membership growth and Medicaid rate increases[304] - Total revenues increased by 6% to $163.1 billion in 2024, driven by a 36% increase in Commercial revenues, while Other revenues decreased by 20%[318] - Total revenues for 2024 reached $163,071 million, an increase of 5.4% from $153,999 million in 2023[402] Earnings and Profitability - Diluted earnings per share (EPS) increased to $6.31 for 2024, compared to $4.95 for 2023[282] - Adjusted diluted EPS rose to $7.17 for 2024, representing a 7% growth year-over-year[282] - Net earnings attributable to Centene Corporation for 2024 were $3,305 million, up 22.3% from $2,702 million in 2023[402] - Basic earnings per common share increased to $6.33 in 2024, compared to $4.97 in 2023, reflecting a growth of 27.3%[402] - The company reported a comprehensive earnings of $3,453 million in 2024, compared to $3,182 million in 2023, an increase of 8.5%[404] Expenses and Cost Management - SG&A expense ratio improved to 8.5% for 2024, down from 9.0% for 2023[282] - SG&A expense ratio decreased to 8.5% for the year ended December 31, 2024, from 9.0% in 2023, primarily due to the divestiture of Circle Health and lower Medicare SG&A[309] - Total impairment charges for 2024 were $13 million, significantly lower than the $529 million recorded in 2023, which included a $292 million charge related to Circle Health[310][311] Medical Claims and Liabilities - The total medical claims liability as of December 31, 2024, was $18.3 billion, an increase from $18.0 billion in 2023[370] - The company incurred $128.3 billion in medical claims related to the current year for 2024, compared to $120.7 billion in 2023[370] - Medical claims liability includes claims reported but not yet paid, estimates for claims incurred but not reported, and processing costs[435] - The Company uses actuarial methods to estimate medical claims liability, considering historical data and various relevant factors[435] Cash Flow and Financing - Operating cash flows were $154 million for 2024, a significant decrease from $8.1 billion for 2023[282] - Cash used in financing activities rose to $2.4 billion in 2024, driven by stock repurchases totaling $3.1 billion, compared to $1.6 billion in 2023[330][331] - The company has $2.2 billion remaining under its stock repurchase program as of December 31, 2024, after repurchasing 42 million shares for $3.0 billion[333] Divestitures and Acquisitions - The company divested its majority stake in Apixio in June 2023, recognizing a gain of $93 million, or $67 million after-tax[272] - The company completed several divestitures, including Operose Health and Circle Health, impacting its operational structure[296] - The Company completed the divestitures of Circle Health and Collaborative Health Systems (CHS) during 2024[416] Capital and Investments - The debt-to-capital ratio increased to 41.2% as of December 31, 2024, from 40.7% in 2023, influenced by stock repurchases and increased borrowings[338] - The company has short-term investments of $2.6 billion and long-term investments of $18.8 billion as of December 31, 2024[384] Regulatory and Compliance - The company anticipates limited reductions in Medicaid membership post-redeterminations, as most states have completed their unwinding processes by December 2024[278] - The Company reached an agreement with the federal government in 2024 to retroactively compensate for the difference in cost sharing reductions (CSRs) from 2018 to 2020[450] Accounting and Reporting - Revenue recognition is based on premiums received from states, members, and CMS, with adjustments for risk scores based on member acuity[373] - The Company estimates risk adjustment revenues based on diagnosis data submitted to CMS, recording revenues on a risk-adjusted basis[443] - The Company adopted new accounting guidance in Q4 2024 regarding segment reporting, which will enhance disclosures about significant expenses[459]

Core Viewpoint - Health Net, a subsidiary of Centene Corporation, is supporting National No One Eats Alone Day on February 14, 2025, to combat social isolation among students and promote a sense of belonging [1][2][6]. Group 1: Company Initiatives - Health Net is actively involved in initiatives aimed at fostering inclusion and reducing social isolation among youth, emphasizing the importance of community well-being [2][3]. - The Centene Foundation, the philanthropic arm of Centene Corporation, is sponsoring events related to No One Eats Alone Day, providing resources to schools at no charge [1][7]. - Participating schools will receive a "Belonging Box" containing lesson plans and materials to help students connect and build relationships [4][7]. Group 2: Impact on Youth - Social isolation is linked to serious mental and physical health issues, making initiatives like No One Eats Alone Day crucial for student well-being [2][6]. - The program encourages peer-to-peer support, which helps build self-esteem and a culture of belonging in schools [2][3]. - In 2024, the Centene Foundation registered 443 schools across 12 states to participate, aiming to reach over 1.5 million students nationwide [7]. Group 3: Partnerships and Collaborations - Beyond Differences, a nonprofit organization, established the No One Eats Alone initiative and has been providing free Social Emotional Learning programs since 2010 [3][11]. - Sandy Hook Promise, which focuses on preventing violence in schools, has integrated with Beyond Differences to enhance youth-centered initiatives [3][10]. - The collaboration aims to empower students and create a safer, more supportive school environment [4][10].

Core Insights - The Centene Foundation and 'Ohana Health Plan have awarded a $550,000 grant to Hawai'i Island Community Health Center (HICHC) to fund a mobile health clinic aimed at improving access to health services for underserved students in rural Hawai'i Island [1][2][3] Group 1: Grant and Project Overview - The grant will support HICHC's "Gateway to Health" project over two years, focusing on expanding school-based health services through a new mobile health clinic [1][2] - The mobile health clinic will provide medical, dental, and mental health services directly to students in rural areas, addressing the lack of access to healthcare facilities [2][3] Group 2: Impact on Students and Communities - The initiative aims to enhance students' health, thereby improving their academic performance and reducing absenteeism [2][3] - HICHC currently operates School-Based Health Centers (SBHCs) across five locations, serving eight schools, which help eliminate barriers to care such as transportation issues [3][5] Group 3: Organizational Background - HICHC is one of the largest Federally Qualified Health Centers in Hawai'i, employing over 400 healthcare professionals and serving 40,000 residents across 14 locations [5] - 'Ohana Health Plan provides managed care services primarily through Medicaid and Medicare, focusing on families and individuals with complex medical needs [6] - The Centene Foundation is dedicated to investing in economically challenged communities and improving health equity through various initiatives [7]

Core Viewpoint - Centene Corporation (CNC) reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of 80 cents, exceeding estimates by 63.3% and showing a year-over-year increase of 77.8% [1][2]. Financial Performance - Revenues for the quarter reached $40.8 billion, a 3.4% increase year over year, surpassing the consensus estimate by 4.8% [2]. - Medicaid revenues decreased by 1% to $20.8 billion, while Medicare revenues grew by 4% to $5.5 billion. Commercial revenues saw a significant increase of 18% to $8.7 billion [3]. - Total premiums amounted to $35.5 billion, up 3.8% year over year, exceeding the consensus estimate of $34.7 billion [4]. - Service revenues fell by 29.7% to $777 million, missing the consensus mark [5]. - Investment and other income decreased by 14.2% to $344 million, also falling short of estimates [5]. Membership and Operational Metrics - Total membership reached 28.6 million, a 4.1% increase year over year, with notable growth in the Commercial Marketplace business [6]. - The Health Benefits Ratio (HBR) deteriorated by 10 basis points to 89.6% [6]. - Adjusted net earnings rose by 68.3% to $404 million [6]. Expense Management - Total operating expenses increased by 2.5% to $40.6 billion, driven by higher medical costs and premium tax expenses [7]. - The adjusted SG&A expense ratio improved by 80 basis points to 8.9%, attributed to the divestiture of Circle Health Group and cost leveraging [8]. Cash and Debt Position - As of December 31, 2024, cash and cash equivalents stood at $14.1 billion, down 18.2% from the previous year [9]. - Total assets decreased by 2.6% to $82.4 billion, while long-term debt rose by 4% to $18.4 billion [9]. Full-Year Overview - For the full year 2024, total revenues reached $163.1 billion, a 5.9% increase, with adjusted EPS of $7.17, up 7.3% year over year [12]. - Total operating expenses for the year rose by 5.8% to $159.9 billion [12]. Share Repurchase Activity - Centene repurchased $3 billion in common shares during 2024, with $2.2 billion remaining under the share repurchase authorization as of February 4, 2025 [13]. 2025 Guidance - Management projects premium and service revenues between $158 billion and $160 billion for 2025, indicating a growth of 9.3% from 2024 [14]. - Adjusted EPS is expected to exceed $7.25, reflecting a 1.1% increase from 2024 [14].

Group 1 - Centene Corporation held its Fourth Quarter and Full Year 2024 Earnings Conference Call on February 4, 2025 [2] - The call was hosted by Jennifer Gilligan, Senior Vice President of Finance and Investor Relations, along with CEO Sarah London and CFO Drew Asher [3] - The event was recorded and participants were initially in listen-only mode [2] Group 2 - The company provided forward-looking statements regarding future expectations, plans, and prospects, which are protected under the Private Securities Litigation Reform Act of 1995 [4] - Actual results may differ materially from the forward-looking statements due to various important factors [4]

Core Insights - Centene reported revenue of $40.81 billion for the quarter ended December 2024, reflecting a year-over-year increase of 3.4% and surpassing the Zacks Consensus Estimate of $38.96 billion by 4.75% [1] - The company's EPS for the quarter was $0.80, significantly higher than the $0.45 reported in the same quarter last year, resulting in an EPS surprise of 63.27% compared to the consensus estimate of $0.49 [1] Financial Performance Metrics - Total Medical Health Benefits loss ratio was reported at 89.6%, slightly better than the average estimate of 90% from five analysts [4] - Membership in Traditional Medicaid reached 11.41 million, exceeding the average estimate of 11.38 million [4] - Total Medicaid membership was reported at 13 million, above the average estimate of 12.98 million [4] - High Acuity Medicaid membership was consistent with estimates at 1.6 million [4] - Premium and service revenues totaled $36.30 billion, surpassing the average estimate of $35.50 billion and showing a year-over-year increase of 2.7% [4] - Premium revenues were reported at $35.52 billion, exceeding the estimate of $34.71 billion and reflecting a 3.8% year-over-year increase [4] - Service revenues were $777 million, slightly below the average estimate of $782.17 million, marking a significant year-over-year decline of 29.8% [4] - Premium tax revenues reached $4.51 billion, well above the average estimate of $3.07 billion, representing a year-over-year increase of 9.4% [4] - Commercial premium and service revenues were reported at $8.72 billion, exceeding the estimate of $8.47 billion and showing a year-over-year increase of 17.8% [4] - Medicare premium and service revenues were $5.48 billion, slightly below the average estimate of $5.70 billion, with a year-over-year increase of 3.5% [4] - Medicaid premium and service revenues totaled $20.83 billion, surpassing the average estimate of $20.16 billion, but reflecting a year-over-year decline of 1.4% [4] - Other premium and service revenues were reported at $1.27 billion, exceeding the estimate of $1.19 billion, but showing a year-over-year decline of 16.8% [4] Stock Performance - Centene's shares have returned 3.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a 1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Centene (CNC) came out with quarterly earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 63.27%. A quarter ago, it was expected that this healthcare company would post earnings of $1.39 per share when it actually produced earnings of $1.62, delivering a surprise of 16.55%.Over the last four quarters, the compan ...

Centene reported $3.3 billion in 2024 profits as Obamacare enrollment and premium revenue helped ... [+] overcome a big dip in Medicaid enrollment. In this photo, the building housing Centene Corporation headquarters is seen Thursday, July 2, 2015, in Clayton, Mo. (AP Photo/Jeff Roberson)ASSOCIATED PRESSCentene Tuesday reported $3.3 billion in 2024 profits as Obamacare enrollment and premium revenue helped overcome a big dip in Medicaid enrollment.Centene, which sells an array of government subsidized healt ...

-- 2024 Full Year Diluted EPS of $6.31; Adjusted Diluted EPS of $7.17 -- 2024 adjusted diluted EPS of $7.17, up 7% from $6.68 in 2023. Membership increases of 12% in Marketplace and 50% in Medicare PDP, compared to the fourth quarter of 2023. Executed on capital deployment with $3.0 billion of share repurchases in 2024. Increased 2025 premium and service revenues guidance by $4.0 billion driven by Medicaid revenue and better than expected membership performance during the annual enrollment period in Medicar ...