$CNC (+0.13%)
$CI (-0.1%)
$OSCR
$UNH (+0.22%)
$HUM (+0.15%)
$CVS (-0.11%)
$CNC (+0.13%) Centene has withdrawn its earnings guidance for 2025 after new data showed significantly higher morbidity and lower than expected growth in the Marketplace business. This resulted in a decline in net revenue from risk adjustment of approximately $1.8 billion and a decline in earnings of approximately $2.75 per share. Medicaid costs are also rising, particularly in the areas of mental health, home care and expensive drugs in states such as New York and Florida. $CNC (+0.13%) plans a price correction for 2026 and will provide more information in its Q2 results on July 25.
Oscar Health $OSCR is also down due to its high presence in this area, as are other insurance stocks such as $HUM (+0.15%) , $CI (-0.1%) and $UNH (+0.22%) . $CNC (+0.13%) will announce further details on its Q2 results on July 25.
Centene $CNC (+0.13%) has withdrawn its forecast for 2025 due to rising ACA/Medicaid costs. (The Affordable Care Act (ACA), also known as ObamacareACA) accounts for 72% of the business of $CNC (+0.13%) business.
$UNH (+0.22%) has withdrawn from many ACA markets and it now accounts for only a small part of their business.
$CNC (+0.13%) also reported that Medicare Advantage plans are doing better than expected, could be a positive for $UNH (+0.22%) positive as many people now have to self-insure.