Centene Company CNC lately unveiled that its Iowa-based subsidiary, Iowa Complete Care, has been chosen by the Iowa Division of Well being and Human Companies (HHS) to proceed delivering Medicaid managed care companies to members of the Iowa Well being Hyperlink program. The brand new settlement, prone to begin on July 1, 2025, will initially run for a tenure of 4 years and might be prolonged for as much as two years.
This program serves eligible adults, kids and pregnant girls enrolled in Iowa Medicaid, the Iowa Well being and Wellness Plan, and Wholesome and Properly Youngsters in Iowa (Hawki). The brand new contract will allow the Centene subsidiary to supply uninterrupted coordinated bodily, behavioral and long-term care to greater than 218,600 members scattered throughout all of the 99 counties of Iowa and enrolled within the abovementioned well being plans.
Along with this, the newest transfer may also function a method for the CNC unit to widen the scope of its residence and community-based companies and proceed pursuing a collaborative strategy with Iowa’s group companions. The ulterior goal stays to reduce healthcare disparities, present whole-person care and produce about improved well being outcomes for the focused members of the state.
Advantages of the Contract Win for Centene Inventory
Centene’s unit stands to realize from the potential to draw extra beneficiaries of Iowa Medicaid, the Iowa Well being and Wellness Plan and Hawki well being plans because of the newest contract win. That is anticipated to develop CNC’s Medicaid buyer base and improve its presence in Iowa. Iowa Complete Care has catered to the well being wants of the state for 5 years.
The energy of Centene’s Medicaid enterprise seemingly influenced HHS’ resolution to pick Iowa Complete Care as one of many three Medicaid managed care organizations to be awarded the contract. An anticipated improve in membership is anticipated to generate greater premium revenues, which type a considerable portion of a well being insurer’s revenues. Within the second quarter of 2024, Centene reported $20.3 billion in premiums from its Medicaid enterprise line.
Medicaid is an important division for Centene, comprising a good portion of its whole membership, which was 13.1 million as of June 30, 2024.
In addition to the current contract win in Iowa, Centene has secured Medicaid contracts in Kansas, Michigan and New Hampshire in 2024. The insurer continues to reinforce its Medicaid enterprise by partnerships with suppliers and substantial investments. Along with Medicaid, Centene additionally presents Medicare and Market plans throughout the USA.
CNC’s Share Value Efficiency
Shares of Centene have risen 15.7% previously 12 months in contrast with the industry’s 22.2% development.
Picture Supply: Zacks Funding Analysis
Zacks Rank & Key Picks
CNC at the moment carries a Zacks Rank #3 (Maintain).
Some better-ranked shares from the Medical area are DaVita Inc. DVA, Avanos Medical, Inc. AVNS and The Pennant Group, Inc. PNTG. Whereas DaVita sports activities a Zacks Rank #1 (Sturdy Purchase) at current, Avanos Medical and Pennant carry a Zacks Rank #2 (Purchase). You’ll be able to see the complete list of today’s Zacks #1 Rank stocks here.
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The consensus estimate for DaVita’s earnings has moved 1.1% north previously seven days. Shares of DVA have gained 50.5% previously 12 months.
Avanos Medical’s earnings outpaced the Zacks Consensus Estimate in three of the trailing 4 quarters and missed the mark as soon as, the typical shock being 5.69%. The consensus estimate for AVNS’ 2024 earnings implies an enchancment of 35% from the 2023 determine.
The consensus estimate for Avanos Medical’s earnings has moved 0.7% north previously 60 days. Shares of AVNS have gained 17.7% previously 12 months.
Pennant’s earnings outpaced the Zacks Consensus Estimate in three of the trailing 4 quarters and matched the mark as soon as, the typical shock being 7.67%. The consensus estimate for PNTG’s 2024 earnings and revenues signifies an enchancment of 23.3% and 24.4%, respectively, from the 2023 figures.
The consensus estimate for Pennant’s earnings has moved 1.1% north previously 30 days. Shares of PNTG have gained 192.3% previously 12 months.
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DaVita Inc. (DVA) : Free Stock Analysis Report
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