Signs of stability in the Obamacare market afters years of turmoil helped boost sales at Centene in the three months through September.
Revenue at the St. Louis-based insurer, which operates largely in the federal insurance business, grew 36 percent to $16 billion in the third quarter. The company had 2 million commercial customers at the end of the quarter, a 24 percent year-over-year increase. Centene also reported 12 percent growth in its Medicaid expansion business, to 1.2 million customers.
The company’s stock climbed 1.2 percent to $143 in New York pre-market trading.
Chief Executive Officer Michael Neidorff told investors the company is entering four new states next year: Pennsylvania, North Carolina, South Carolina and Tennessee.
“We expect 2019 to be another strong year,” he said on the earnings call.
After failing to repeal former President Barack Obama’s signature domestic achievement, Republicans have largely toned down their rhetoric against the health law and instead have begun to voice support for key aspects of it, like protections for individuals with pre-existing conditions.
Democrats – who for years were forced to defend Obamacare while insurers announced dramatic rate increases – are now using it as a galvanizing issue as the party tries to take back control of the House and Senate.
Rate hikes are expected to be modest for 2019 and several insurers are returning to individual exchanges created by the landmark health law. Premiums across the majority of states are expected to increase by roughly 3 percent next year, according to a report published in September.
The Trump administration, however, has announced several actions that supporters say could undermine that growth. The White House slashed advertising and outreach budgets ahead of open enrollment and pushed forward a rule to allow further access to controversial health plans.
Republicans also repealed the requirement that U.S. residents purchase insurance in the recent tax overhaul. Neidorff said the company does “not expect this to have a meaningful impact.”
