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Centene (CNC) Eyes Membership Growth With 2024 Expansion Plans
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Centene Corporation’s (CNC - Free Report) Medicare brand, Wellcare, announced expansion endeavors for growth of its Medicare Advantage (MA) and Medicare Prescription Drug Plan (PDP) in 2024.
Next year, Centene aims to introduce its MA plans across 21 new counties, which will subsequently mark its foray into the state of Delaware for the first time. The recent announcement will expand the overall reach of CNC’s MA business to 1,808 counties, spread across 37 states.
The company will also introduce a Wellcare Spendables debit card and offer new Dual Eligible Special Needs Plans, and 23 newly designed plans. The new debit card can be used at over 55,000 retailers in 37 states and will enhance CNC’s offerings for its members.
Centene's 2024 MA plans have been infused with affordability, varied choices and stacked with multiple benefits to address a diversified set of health needs of older adults. Customers can avail these plans during the Annual Enrollment Period, which will run between Oct 15, 2023, and Dec 7, 2023. This makes the latest move of CNC a time opportune one.
Members of D-SNP will be able to get additional support to make needs like utilities, food and Part D prescriptions affordable. The new Wellcare Spendables card will provide benefits depending on plans, like healthy groceries from retailers nationwide, rent/utility, cost assistance for vision, hearing and dental, and over-the-counter products. Moreover, inclusivity of telehealth in all plans will benefit members at no extra cost.
Wellcare’s pharmacy benefit manager will be Express Scripts for 2024, providing cost savings for members. The company expects more than 60,000 pharmacies in its total network for 2024.
Centene’s Wellcare has also forged an alliance with Mutual of Omaha aiming to offer co-branded plans in Georgia, Missouri, Washington, South Carolina and select portions of Texas. This partnership is expected to benefit from Mutual of Omaha’s brand synergy and Wellcare’s distribution expertise. Wellcare will also be serving as the exclusive Medicare Advantage partner for The American Legion, adding nearly 2 million of its members to offer its innovative products.
Wellcare’s three plans will be offered in 50 states and the District of Columbia. The Value Script plan will be offered for less than $1 in premiums and $0 in 16 states. Formulatory improvements will lead to lesser cost-sharing by members in 2024.
An expanding customer base fetches higher premiums, which are the most significant contributor to a health insurer’s top line. Apart from membership growth, the Medicare business of CNC continues to be driven by constant product expansions and new collaborations or contract extensions with renowned healthcare systems. Also, an aging U.S. population may sustain solid demand for the health insurer’s MA plans in the days ahead.
Price Performance
Shares of Centene have gained 2.3% in the past six months compared with the industry’s growth of 0.8%.
The bottom line of Molina Healthcare outpaced estimates in each of the last four quarters, the average surprise being 7.2%. The Zacks Consensus Estimate for MOH’s 2023 earnings and revenues suggests an improvement of 16% and 3.4%, respectively, from the corresponding year-ago reported figures. The consensus mark for MOH’s 2023 earnings has moved 0.3% north in the past 30 days.
The bottom line of Alcon outpaced estimates in three of the last four quarters, meeting once, the average surprise being 8%. The Zacks Consensus Estimate for ALC’s 2023 earnings and revenues suggests an improvement of 22.8% and 9.5%, respectively, from the corresponding year-ago reported figures. The consensus mark for ALC’s 2023 earnings has moved 4.2% north in the past 60 days.
The bottom line of The Ensign Group outpaced estimates in two of the last four quarters, meeting once and missing once, the average surprise being 0.9%. The Zacks Consensus Estimate for ENSG’s 2023 earnings and revenues suggests an improvement of 14.7% and 22.7%, respectively, from the corresponding year-ago reported figures.
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Centene (CNC) Eyes Membership Growth With 2024 Expansion Plans
Centene Corporation’s (CNC - Free Report) Medicare brand, Wellcare, announced expansion endeavors for growth of its Medicare Advantage (MA) and Medicare Prescription Drug Plan (PDP) in 2024.
Next year, Centene aims to introduce its MA plans across 21 new counties, which will subsequently mark its foray into the state of Delaware for the first time. The recent announcement will expand the overall reach of CNC’s MA business to 1,808 counties, spread across 37 states.
The company will also introduce a Wellcare Spendables debit card and offer new Dual Eligible Special Needs Plans, and 23 newly designed plans. The new debit card can be used at over 55,000 retailers in 37 states and will enhance CNC’s offerings for its members.
Centene's 2024 MA plans have been infused with affordability, varied choices and stacked with multiple benefits to address a diversified set of health needs of older adults. Customers can avail these plans during the Annual Enrollment Period, which will run between Oct 15, 2023, and Dec 7, 2023. This makes the latest move of CNC a time opportune one.
Members of D-SNP will be able to get additional support to make needs like utilities, food and Part D prescriptions affordable. The new Wellcare Spendables card will provide benefits depending on plans, like healthy groceries from retailers nationwide, rent/utility, cost assistance for vision, hearing and dental, and over-the-counter products. Moreover, inclusivity of telehealth in all plans will benefit members at no extra cost.
Wellcare’s pharmacy benefit manager will be Express Scripts for 2024, providing cost savings for members. The company expects more than 60,000 pharmacies in its total network for 2024.
Centene’s Wellcare has also forged an alliance with Mutual of Omaha aiming to offer co-branded plans in Georgia, Missouri, Washington, South Carolina and select portions of Texas. This partnership is expected to benefit from Mutual of Omaha’s brand synergy and Wellcare’s distribution expertise. Wellcare will also be serving as the exclusive Medicare Advantage partner for The American Legion, adding nearly 2 million of its members to offer its innovative products.
Wellcare’s three plans will be offered in 50 states and the District of Columbia. The Value Script plan will be offered for less than $1 in premiums and $0 in 16 states. Formulatory improvements will lead to lesser cost-sharing by members in 2024.
An expanding customer base fetches higher premiums, which are the most significant contributor to a health insurer’s top line. Apart from membership growth, the Medicare business of CNC continues to be driven by constant product expansions and new collaborations or contract extensions with renowned healthcare systems. Also, an aging U.S. population may sustain solid demand for the health insurer’s MA plans in the days ahead.
Price Performance
Shares of Centene have gained 2.3% in the past six months compared with the industry’s growth of 0.8%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Centene currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical sector are Molina Healthcare, Inc. (MOH - Free Report) , Alcon Inc. (ALC - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) . Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Molina Healthcare outpaced estimates in each of the last four quarters, the average surprise being 7.2%. The Zacks Consensus Estimate for MOH’s 2023 earnings and revenues suggests an improvement of 16% and 3.4%, respectively, from the corresponding year-ago reported figures. The consensus mark for MOH’s 2023 earnings has moved 0.3% north in the past 30 days.
The bottom line of Alcon outpaced estimates in three of the last four quarters, meeting once, the average surprise being 8%. The Zacks Consensus Estimate for ALC’s 2023 earnings and revenues suggests an improvement of 22.8% and 9.5%, respectively, from the corresponding year-ago reported figures. The consensus mark for ALC’s 2023 earnings has moved 4.2% north in the past 60 days.
The bottom line of The Ensign Group outpaced estimates in two of the last four quarters, meeting once and missing once, the average surprise being 0.9%. The Zacks Consensus Estimate for ENSG’s 2023 earnings and revenues suggests an improvement of 14.7% and 22.7%, respectively, from the corresponding year-ago reported figures.