Centene Corp.'s fourth quarter earnings plunged 70 percent, as flu expenses hit the Medicaid coverage provider and it continued to struggle with costs from two of its state programs.
The St. Louis company said Tuesday that the flu added about 30 cents per share in medical costs during the quarter, as claims came in higher than what Centene experienced in 2011. Analysts have warned that this flu season was off to a quicker, more intense start than those in recent years.
The insurer also said higher costs in its Kentucky and Texas Medicaid programs affected results. Medicaid is the state and federally funded program that provides health coverage to poor and disabled people. States typically hire private insurers to administer the coverage, and that represents the largest slice of Centene's business.
Centene said last fall it was planning to end its contract to administer Medicaid in Kentucky, where costs have come in much higher than it expected.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
