Key Takeaways Centene relies on Medicaid, Medicare and ACA contracts for steady revenue and scale expansion.Partnerships with providers, PBMs and tech firms boost efficiency, outcomes and profitability.CNC shares are down 52% YTD, with EPS estimates revised lower despite revenue growth outlook.Contracts and partnerships are central to Centene Corporation’s (CNC) business model. Centene is one of the largest managed care providers across Medicaid, Medicare, and the Affordable Care Act (ACA) marketplaces. The ...

Core Insights - Centene Corporation experienced a significant stock decline of nearly 40% on July 2 after withdrawing its full-year guidance, attributing the drop to challenges in its Medicaid and Affordable Care Act (ACA) businesses [1][8] - The company's stock closed at $33.31, marking a 38% decrease over the past week [1] Group 1: Stock Performance and Legislative Context - Four U.S. House members sold Centene shares between May 12 and May 30, prior to the company's warning and the passage of the One Big Beautiful Bill Act (OBBBA), which cuts Medicaid funding by $1 trillion over the next decade [3][4] - The OBBBA, passed on July 3, imposes stricter Medicaid work requirements and eligibility checks, potentially removing 10 to 12 million Americans from coverage by 2034 [8] - The timing of congressional stock trades has raised concerns about potential insider trading, given the direct impact of legislation on Centene [9] Group 2: Financial Impact and Market Conditions - Centene disclosed that enrollment and cost trends would reduce earnings by $2.75 per share [8] - The company is facing challenges as healthier enrollees are dropping coverage following the rollback of pandemic-era benefits, resulting in fewer, higher-cost members and squeezing earnings [9] - Critics of the OBBBA warn that it could severely impact low-income families and rural healthcare providers, while supporters argue it will help reduce fraud and abuse [8]