Centene faces risks from legal and regulatory proceedings, including potential substantial damages or penalties. Medicaid membership declines due to redeterminations and state actions are a concern. Medicare Advantage membership and Star ratings are also uncertain, potentially leading to losses. Investment portfolio losses, interest rate increases, and changes in healthcare practices are additional risks. The company's ability to manage health benefits and SG&A expenses is also a factor.
Financial Upside
Centene's revenue growth is driven by Medicaid rate increases, Marketplace membership growth, and premium tax revenue. Successful divestitures and new contracts, particularly in Medicaid and Commercial segments, offer potential upside. Improved Medicare Advantage membership ratings and successful contract appeals could also boost revenue. Strong liquidity and access to capital are positive factors.
