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Centene (CNC) Boosts Presence in Louisiana With Contract Win
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Centene Corporation (CNC - Free Report) recently unveiled that its subsidiary Louisiana Healthcare Connection has received a new contract from the Louisiana Department of Health. The contract renewal is expected to aid Medicaid beneficiaries of Louisiana.
The new managed care organization contract is expected to come into effect from the beginning of July 2022. The original tenure of the contract is of three years, but it can be expanded to a maximum of another two years.
The recent contract win is likely to enable Centene to continue offering enhanced value-based care to the Medicaid enrollees in Louisiana, thereby paving the way for improved health outcomes throughout the state. In addition to this, the renewed contract will provide a number of new benefits and services for the Medicaid population. Included within the new offerings are community-based services for maternity and early childhood care, respite and housing support to members, and expansion of quality-based advanced payment models with a view to assisting healthcare providers.
With initiatives similar to the latest one, Centene’s presence across the respective states gets further strengthened. It is worth mentioning that CNC boasts of a well-established presence across Louisiana, courtesy of its subsidiary Louisiana Healthcare Connection (the largest Medicaid health plan of the state). The Medicaid managed care program caters to over 540,000 Medicaid enrollees and collaborates with 39,000 healthcare providers stretched throughout the state. Besides Medicaid, CNC provides Medicare and Health Insurance Marketplace plans in Louisiana.
Centene makes use of its value-based care model, innovative technologies and provider collaborations for extending cost-effective healthcare services and programs throughout the United States. Through such a wide array of plans, CNC aims to reach nationwide and thereby eliminate hindrances in the way of members opting for care. A well-diversified healthcare suite and solid nationwide presence have fetched numerous contract wins and deal renewals for CNC. Some of the states that chose CNC for serving members in 2021 include Arizona, Nevada and Ohio. These deals continue to boost the managed care membership metric of Centene, which improved 4% year over year as of Dec 31, 2021.
The Medicaid business of Centene remains well-poised for growth on the back of continued program expansions amid several states, thereby resulting in growing membership. Higher year-over-year membership growth (10.3%) in the Medicaid business was even cited as one of the primary reasons behind the 13% revenue growth of CNC in 2021.
Similar to Centene, other healthcare providers such as UnitedHealth Group Incorporated (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) boast of solid Medicaid businesses and have been awarded contracts from various states from time to time.
UnitedHealth Group boasts a robust Medicaid business through which it has been devising cost-effective health plans and reaching out to various parts of the nation. Last year, the Medicaid business growth was driven by contract wins in Minnesota, Nevada, Ohio and Tennessee and UNH’s penetration into new regions of Indiana, Kentucky and North Carolina. The number of people served through the UnitedHealth Group’s Medicaid business grew 15.6% as of Dec 31, 2021, from the 2020 figure.
Humana has a strong Medicaid business in place on the back of several contract wins and renewals, which have extended the company’s U.S. footprint and resulted in growing membership. Premiums from HUM’s Medicaid and other businesses climbed 21% year over year in 2021. Concurrent with Centene’s latest contract win announcement, the Louisiana Department of Health also awarded Humana a contract for providing health care coverage to Medicaid beneficiaries in the state.
Molina Healthcare’s Medicaid business continues to benefit from factors such as increased membership and contract wins similar to those in Nevada and Ohio. As of Dec 31, 2021, the Medicaid membership of MOH witnessed growth of 20.3% from the prior-year comparable period. In an effort to boost its Medicaid business, Molina Healthcare completed the buyout of Cigna’s Texas Medicaid contracts at the very beginning of 2022.
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Centene (CNC) Boosts Presence in Louisiana With Contract Win
Centene Corporation (CNC - Free Report) recently unveiled that its subsidiary Louisiana Healthcare Connection has received a new contract from the Louisiana Department of Health. The contract renewal is expected to aid Medicaid beneficiaries of Louisiana.
The new managed care organization contract is expected to come into effect from the beginning of July 2022. The original tenure of the contract is of three years, but it can be expanded to a maximum of another two years.
The recent contract win is likely to enable Centene to continue offering enhanced value-based care to the Medicaid enrollees in Louisiana, thereby paving the way for improved health outcomes throughout the state. In addition to this, the renewed contract will provide a number of new benefits and services for the Medicaid population. Included within the new offerings are community-based services for maternity and early childhood care, respite and housing support to members, and expansion of quality-based advanced payment models with a view to assisting healthcare providers.
With initiatives similar to the latest one, Centene’s presence across the respective states gets further strengthened. It is worth mentioning that CNC boasts of a well-established presence across Louisiana, courtesy of its subsidiary Louisiana Healthcare Connection (the largest Medicaid health plan of the state). The Medicaid managed care program caters to over 540,000 Medicaid enrollees and collaborates with 39,000 healthcare providers stretched throughout the state. Besides Medicaid, CNC provides Medicare and Health Insurance Marketplace plans in Louisiana.
Centene makes use of its value-based care model, innovative technologies and provider collaborations for extending cost-effective healthcare services and programs throughout the United States. Through such a wide array of plans, CNC aims to reach nationwide and thereby eliminate hindrances in the way of members opting for care. A well-diversified healthcare suite and solid nationwide presence have fetched numerous contract wins and deal renewals for CNC. Some of the states that chose CNC for serving members in 2021 include Arizona, Nevada and Ohio. These deals continue to boost the managed care membership metric of Centene, which improved 4% year over year as of Dec 31, 2021.
The Medicaid business of Centene remains well-poised for growth on the back of continued program expansions amid several states, thereby resulting in growing membership. Higher year-over-year membership growth (10.3%) in the Medicaid business was even cited as one of the primary reasons behind the 13% revenue growth of CNC in 2021.
Similar to Centene, other healthcare providers such as UnitedHealth Group Incorporated (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) boast of solid Medicaid businesses and have been awarded contracts from various states from time to time.
UnitedHealth Group boasts a robust Medicaid business through which it has been devising cost-effective health plans and reaching out to various parts of the nation. Last year, the Medicaid business growth was driven by contract wins in Minnesota, Nevada, Ohio and Tennessee and UNH’s penetration into new regions of Indiana, Kentucky and North Carolina. The number of people served through the UnitedHealth Group’s Medicaid business grew 15.6% as of Dec 31, 2021, from the 2020 figure.
Humana has a strong Medicaid business in place on the back of several contract wins and renewals, which have extended the company’s U.S. footprint and resulted in growing membership. Premiums from HUM’s Medicaid and other businesses climbed 21% year over year in 2021. Concurrent with Centene’s latest contract win announcement, the Louisiana Department of Health also awarded Humana a contract for providing health care coverage to Medicaid beneficiaries in the state.
Molina Healthcare’s Medicaid business continues to benefit from factors such as increased membership and contract wins similar to those in Nevada and Ohio. As of Dec 31, 2021, the Medicaid membership of MOH witnessed growth of 20.3% from the prior-year comparable period. In an effort to boost its Medicaid business, Molina Healthcare completed the buyout of Cigna’s Texas Medicaid contracts at the very beginning of 2022.
Price Performances
Shares of Centene have gained 28% in the past six months, compared with the industry’s rally of 14.7%. CNC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of UnitedHealth Group, Humana and Molina Healthcare have gained 13.7%, 1.8% and 21.4%, respectively, in the past six months.