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Centene (CNC) Chosen to Serve New Hampshire's Medicaid Members
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Centene Corporation (CNC - Free Report) recently disclosed that its unit, NH Healthy Families, was awarded a managed care contract by the New Hampshire Department of Health and Human Services ("DHHS") to serve members of the state’s Medicaid program, Medicaid Care Management (“MCM"). The contract will come into effect from the beginning of September 2024 and run for a period of five years.
The contract win has endowed the CNC subsidiary with the responsibility to continue pursuing collaborative work with its partner and provider network in New Hampshire, which in turn, will enable the unit to gain an in-depth understanding of local communities. Consequent to this, NH Healthy Families will be equipped to offer high-quality physical health, behavioral health and pharmacy services, thereby delivering coordinated care and bringing about improved health outcomes for the New Hampshire community.
The Centene unit will benefit from the opportunity to attract more beneficiaries of the MCM program and consequently, bolster its Medicaid customer base across New Hampshire. MCM boasts a customer base of roughly 178,000, comprising pregnant women, children, non-elderly and non-disabled adults aged below 65 years. Aged, blind or disabled individuals also form a part of the customer base. Therefore, such Medicaid contract wins are also a means to fortify the footprint of a health insurer across a state.
Centene boasts a longstanding history of catering to MCM members for a decade now and has earned the reputation of being one of the largest Medicaid health plans in New Hampshire. In addition to an expanding Medicaid business, the health insurer also provides products to reach out to the Medicare and Health Insurance Marketplace members of the state. As testament to the same, the membership base of CNC has witnessed a significant uptick from 34,000 to around 92,694 in each of its business lines over the last decade.
Contract wins similar to the latest one are likely to provide an impetus to the Managed Care business of Centene, which contributes the most to its revenues. It has built the business through provider collaborations and significant investments, and distributed affordable health insurance plans across different U.S. communities. The lucrativeness of the plans fetches the health insurer with contract wins from time to time.
The Medicaid business remains a significant unit for CNC as it makes up for a significant chunk of its overall membership. Its Medicaid membership was 15.2 million as of Sep 30, 2023. An expanding customer base usually fetches increased premiums for a health insurer. Centene generated premiums of $65.7 billion from its Medicaid business in the first nine months of 2023, which improved 4.7% year over year. In December 2023, its Arizona subsidiary, Arizona Complete Health, received a Medicaid contract from the Medicaid agency of the state, Arizona Health Care Cost Containment System.
Shares of Centene have risen 8.9% in the past six months compared with the industry’s 4.7% growth. CNC currently carries a Zacks Rank #2 (Buy).
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Centene (CNC) Chosen to Serve New Hampshire's Medicaid Members
Centene Corporation (CNC - Free Report) recently disclosed that its unit, NH Healthy Families, was awarded a managed care contract by the New Hampshire Department of Health and Human Services ("DHHS") to serve members of the state’s Medicaid program, Medicaid Care Management (“MCM"). The contract will come into effect from the beginning of September 2024 and run for a period of five years.
The contract win has endowed the CNC subsidiary with the responsibility to continue pursuing collaborative work with its partner and provider network in New Hampshire, which in turn, will enable the unit to gain an in-depth understanding of local communities. Consequent to this, NH Healthy Families will be equipped to offer high-quality physical health, behavioral health and pharmacy services, thereby delivering coordinated care and bringing about improved health outcomes for the New Hampshire community.
The Centene unit will benefit from the opportunity to attract more beneficiaries of the MCM program and consequently, bolster its Medicaid customer base across New Hampshire. MCM boasts a customer base of roughly 178,000, comprising pregnant women, children, non-elderly and non-disabled adults aged below 65 years. Aged, blind or disabled individuals also form a part of the customer base. Therefore, such Medicaid contract wins are also a means to fortify the footprint of a health insurer across a state.
Centene boasts a longstanding history of catering to MCM members for a decade now and has earned the reputation of being one of the largest Medicaid health plans in New Hampshire. In addition to an expanding Medicaid business, the health insurer also provides products to reach out to the Medicare and Health Insurance Marketplace members of the state. As testament to the same, the membership base of CNC has witnessed a significant uptick from 34,000 to around 92,694 in each of its business lines over the last decade.
Contract wins similar to the latest one are likely to provide an impetus to the Managed Care business of Centene, which contributes the most to its revenues. It has built the business through provider collaborations and significant investments, and distributed affordable health insurance plans across different U.S. communities. The lucrativeness of the plans fetches the health insurer with contract wins from time to time.
The Medicaid business remains a significant unit for CNC as it makes up for a significant chunk of its overall membership. Its Medicaid membership was 15.2 million as of Sep 30, 2023. An expanding customer base usually fetches increased premiums for a health insurer. Centene generated premiums of $65.7 billion from its Medicaid business in the first nine months of 2023, which improved 4.7% year over year. In December 2023, its Arizona subsidiary, Arizona Complete Health, received a Medicaid contract from the Medicaid agency of the state, Arizona Health Care Cost Containment System.
Shares of Centene have risen 8.9% in the past six months compared with the industry’s 4.7% growth. CNC currently carries a Zacks Rank #2 (Buy).
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Other Stocks to Consider
Some other top-ranked stocks from the Medical space are BioMarin Pharmaceutical Inc. (BMRN - Free Report) , Amphastar Pharmaceuticals, Inc. (AMPH - Free Report) and Repligen Corporation (RGEN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BioMarin Pharmaceutical’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, matched the mark once and missed the same on the remaining one occasion, the average surprise being 11.68%. The Zacks Consensus Estimate for BMRN’s 2024 earnings and revenues suggests an improvement of 55.2% and 16.1% from the respective 2023 estimate.
The consensus estimate for BioMarin Pharmaceutical’s 2024 earnings has moved 2.6% north in the past seven days. Shares of BMRN have gained 5.7% in the past six months.
Amphastar Pharmaceuticals’ earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 52.06%. The consensus estimate for AMPH’s 2024 earnings and revenues suggests an improvement of 17.7% and 25.4% from the respective 2023 estimate.
The consensus estimate for Amphastar Pharmaceuticals’ 2024 earnings has moved 1.3% north in the past 60 days. Shares of AMPH have declined 10.8% in the past six months.
Repligen’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.54%. The consensus estimate for RGEN’s 2024 earnings and revenues suggests an improvement of 3.1% and 4.4% from the respective 2023 estimate.
The consensus estimate for Repligen’s 2024 earnings has moved 1.7% north in the past 30 days. Shares of RGEN have gained 10.6% in the past six months.