Centene profits hit $738 million in the third quarter

Insurer Centene has increased its year-over-year profits, logging $738 million in profit in the third quarter of this year, up from $584 million a year ago.

According to the earnings report Centene released this week, that brings 2022’s total profit up to $1.5 billion, once again an increase over 2021, in which the insurer collected $748 million during the same period.

On the revenue side, the $35.9 billion the company brought in in Q3 brings total revenue for 2022 up to $109 billion to this point. Both are increases from the previous year, when Centene logged $32.4 billion in revenue in Q3 and $93.4 billion through the first three quarters.

This financial performance is attributable to a couple of factors, including Medicare membership increasing by 22%, and the news that it would be partnering with Express Scripts as its pharmacy benefit manager in 2024.

Operating cash flow for Q3 was $3.3 billion, driven by the receipt of $2.9 billion in Centers for Medicare and Medicaid Services payments for October on the last day of September. 

Year-to-date operating cash flow for 2022 was $7.8 billion; excluding the early receipt of $2.9 billion in CMS payments, year-to-date operating cash flow would have been $4.9 billion, or 3.5 times net earnings.

WHAT’S THE IMPACT

Due to the higher-than-expected performance, Centene is raising the bottom of adjusted EPS range by $0.05.

In October, CMS published updated Medicare Star quality ratings for the…