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Centene (CNC) Wins Contract to Serve Delaware's Medicaid Members
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Centene Corporation (CNC - Free Report) recently unveiled that its Delaware unit, Delaware First Health, has been selected by the State of Delaware's Department of Health and Social Services (“DHSS”) to address its statewide Medicaid Managed Care programs. The programs are part of DHSS’ unit — Division of Medicaid & Medical Assistance (DMMA), and encompass Diamond State Health Plan and Diamond State Health Plan-Plus (DSHP-Plus).
Backed by its sound experience of serving Medicaid members for nearly four decades, Centene will utilize this opportunity offered by the State of Delaware to work closely with the local providers to develop enhanced value-based care models. This, in turn, will empower CNC to deliver a comprehensive suite of services comprising physical health, behavioral health, and long-term ones. Concurrently, the managed care organization is focused on eliminating hindrances in availing care and bringing about improved health outcomes for Delaware’s Medicaid members.
The strength of Centene’s Medicaid expertise is further substantiated by the recent contract win. As published on the official website of the State of Delaware, Delaware First Health is one of the three managed care organizations that have been given a contract to serve DHSS’ statewide Medicaid Managed Care program, along with Highmark and AmeriHealth. While the contracts received by Highmark and AmeriHealth remain as renewals, the solid Medicaid capabilities of Centene made it a new addition to the partners’ list of DHSS, thereby highlighting the trust that various state agencies have put on CNC time and again.
Contract wins similar to the latest one are expected to strengthen the Medicaid business of Centene through which it continues to boost provider collaborations, extend value-based care and cater to the varied health needs of Medicaid beneficiaries located throughout its areas of operations.
Delaware remains the 30th Medicaid managed care state of Centene, highlighting its solid geographical presence thanks to a strong Medicaid business. The recent move offers CNC the opportunity to foray into a state, which serves around 300,000 Medicaid members (as published on the State of Delaware’s official website). This, in turn, is expected to bolster the customer base of Centene, which bodes well since membership growth usually drives premiums (the most significant revenue contributor) of a managed care organization.
In the first quarter of 2022, Centene’s Medicaid membership witnessed a 10.4% year-over-year rise leading to a 19% growth in revenues from the Medicaid business. 2022 has been quite an active year for CNC with respect to contract wins. Apart from the recent contract win, the managed care organization was chosen by Louisiana, Indiana and Missouri to serve the states’ Medicaid members. Such contract wins coupled with growing membership are expected to sustain Centene’s top-line growth in the days ahead.
Similar to Centene, healthcare providers such as UnitedHealth Group Incorporated (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , boasts of a solid Medicaid business stemming from contract wins from various states from time to time.
The Medicaid business of UnitedHealth Group has been subject to several contract wins and renewed agreements, which continue to boost the membership growth of the company. In May 2022, the UNH unit, UnitedHealthcare, was selected by Missouri and entrusted to administer the MO HealthNet Managed Care Program to serve the state’s Medicaid beneficiaries. The number of people served through the Medicaid business of UnitedHealthcare grew 12% year over year in the first quarter of 2022.
Humana has a solid Medicaid business on the back of several contract wins and renewals. This, in turn, has provided a boost to the membership growth of the healthcare provider. In February 2022, HUM received a contract from the Louisiana Department of Health in order to extend health care coverage to Medicaid beneficiaries across the state. Humana’s Medicaid and other businesses fetched premiums of $1.6 billion, which grew 31.8% year over year in the first quarter of 2022.
The growing membership, higher premium revenues and a number of contract wins continue to benefit Molina Healthcare. As of Mar 31, 2022, MOH’s Medicaid membership increased 18.3% year over year. Riding on membership growth and, subsequently, premium revenues, revenues from the Medicaid segment of Molina Healthcare witnessed a 23.2% year-over-year increase in the first quarter of 2022.
Shares of UnitedHealth Group and Humana have gained 2.5% and 4.2%, respectively, year to date. However, Molina Healthcare's stock has lost 10.3% in the same time frame.
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Centene (CNC) Wins Contract to Serve Delaware's Medicaid Members
Centene Corporation (CNC - Free Report) recently unveiled that its Delaware unit, Delaware First Health, has been selected by the State of Delaware's Department of Health and Social Services (“DHSS”) to address its statewide Medicaid Managed Care programs. The programs are part of DHSS’ unit — Division of Medicaid & Medical Assistance (DMMA), and encompass Diamond State Health Plan and Diamond State Health Plan-Plus (DSHP-Plus).
Backed by its sound experience of serving Medicaid members for nearly four decades, Centene will utilize this opportunity offered by the State of Delaware to work closely with the local providers to develop enhanced value-based care models. This, in turn, will empower CNC to deliver a comprehensive suite of services comprising physical health, behavioral health, and long-term ones. Concurrently, the managed care organization is focused on eliminating hindrances in availing care and bringing about improved health outcomes for Delaware’s Medicaid members.
The strength of Centene’s Medicaid expertise is further substantiated by the recent contract win. As published on the official website of the State of Delaware, Delaware First Health is one of the three managed care organizations that have been given a contract to serve DHSS’ statewide Medicaid Managed Care program, along with Highmark and AmeriHealth. While the contracts received by Highmark and AmeriHealth remain as renewals, the solid Medicaid capabilities of Centene made it a new addition to the partners’ list of DHSS, thereby highlighting the trust that various state agencies have put on CNC time and again.
Contract wins similar to the latest one are expected to strengthen the Medicaid business of Centene through which it continues to boost provider collaborations, extend value-based care and cater to the varied health needs of Medicaid beneficiaries located throughout its areas of operations.
Delaware remains the 30th Medicaid managed care state of Centene, highlighting its solid geographical presence thanks to a strong Medicaid business. The recent move offers CNC the opportunity to foray into a state, which serves around 300,000 Medicaid members (as published on the State of Delaware’s official website). This, in turn, is expected to bolster the customer base of Centene, which bodes well since membership growth usually drives premiums (the most significant revenue contributor) of a managed care organization.
In the first quarter of 2022, Centene’s Medicaid membership witnessed a 10.4% year-over-year rise leading to a 19% growth in revenues from the Medicaid business. 2022 has been quite an active year for CNC with respect to contract wins. Apart from the recent contract win, the managed care organization was chosen by Louisiana, Indiana and Missouri to serve the states’ Medicaid members. Such contract wins coupled with growing membership are expected to sustain Centene’s top-line growth in the days ahead.
Shares of Centene have gained 5.5% year to date compared with the industry’s rally of 2.7%. CNC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Similar to Centene, healthcare providers such as UnitedHealth Group Incorporated (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , boasts of a solid Medicaid business stemming from contract wins from various states from time to time.
The Medicaid business of UnitedHealth Group has been subject to several contract wins and renewed agreements, which continue to boost the membership growth of the company. In May 2022, the UNH unit, UnitedHealthcare, was selected by Missouri and entrusted to administer the MO HealthNet Managed Care Program to serve the state’s Medicaid beneficiaries. The number of people served through the Medicaid business of UnitedHealthcare grew 12% year over year in the first quarter of 2022.
Humana has a solid Medicaid business on the back of several contract wins and renewals. This, in turn, has provided a boost to the membership growth of the healthcare provider. In February 2022, HUM received a contract from the Louisiana Department of Health in order to extend health care coverage to Medicaid beneficiaries across the state. Humana’s Medicaid and other businesses fetched premiums of $1.6 billion, which grew 31.8% year over year in the first quarter of 2022.
The growing membership, higher premium revenues and a number of contract wins continue to benefit Molina Healthcare. As of Mar 31, 2022, MOH’s Medicaid membership increased 18.3% year over year. Riding on membership growth and, subsequently, premium revenues, revenues from the Medicaid segment of Molina Healthcare witnessed a 23.2% year-over-year increase in the first quarter of 2022.
Shares of UnitedHealth Group and Humana have gained 2.5% and 4.2%, respectively, year to date. However, Molina Healthcare's stock has lost 10.3% in the same time frame.