(Reuters) -Centene beat Wall Street estimates for fourth-quarter profit on Tuesday, helped by strength in its commercial health insurance plans.
The company mostly focuses on government-backed Medicaid plans for low-income people, as well as income-based government-subsidized health insurance under the Affordable Care Act, also known as Obamacare.
It has relied on growth in its private plans for individuals and families as it struggles with a drop in members in its government-backed Medicaid plans for lower-income groups, and a rise in costs related to those plans after the end of a pandemic-era federal policy.
For the quarter, Centene reported a medical loss ratio — the percentage of premiums spent on medical care — of 89.6%, compared with 89.5% a year ago. Analysts on average had estimated a ratio of 89.95%, according to data compiled by LSEG.
On an adjusted basis, the health insurer reported a profit of 80 cents per share, above analysts’ average estimate of 49 cents.
(Reporting by Sriparna Roy and Sneha S K in Bengaluru; Editing by Shinjini Ganguli)
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