Centene Corporation announced its financial results for the first quarter ended March 31, 2021, reporting diluted earnings per share (EPS) of $1.19 and adjusted diluted EPS of $1.63. Total revenues of Centene have jumped to $30.0 billion for the first quarter of 2021, representing 15% growth compared to the first quarter of 2020.
- Road to a stronger future: Michael F. Neidorff, Chairman, President, and Chief Executive Officer of Centene said, “Centene is off to a strong start in 2021, with solid revenue and earnings growth. We are increasing our full-year guidance, driven by the positive first-quarter momentum and the tailwinds we expect to persist throughout the months ahead”.
- HBR rates plummet down :HBR of 86.8% for the first quarter of 2021 represents a decline from 88.0% in the comparable period in 2020. The year-over-year decrease was due to lower medical utilization trends due to the COVID-19 pandemic and lower costs associated with the flu.
- A decline in Expense ratio: The SG&A expense ratio was 8.4% for the first quarter of 2021, compared to 9.9% in the first quarter of the last year. The decrease was due to lower purchase-related costs and the ongoing suspension of Medicaid eligibility redeterminations.
- Total revenue soars high: For the first quarter of 2021, total revenues soared to 15% to $30.0 billion from $26.0 billion in the comparable period of 2020. The increase over the prior year was due to a full quarter of WellCare and the ongoing suspension of Medicaid eligibility issues, which was caused by an overall decrease in Marketplace membership, state premium rate adjustments, and risk-sharing mechanisms.
- Futuristic strategy for Centene: “While we remain vigilant around the unique dynamics of the current operating environment, we are confident in the strength of our diversified healthcare enterprise and the compelling avenues for growth and value creation across our portfolio. We continue to drive forward our technology strategy and the combination with Magellan remains on track to close in the second half of 2021, providing us with additional capabilities to expand access to care and nurture a fully integrated model across behavioral and physical health”, said Michael.