Centene Shares Decline Following Lower ACA Enrollment
Centene shares fell Tuesday as the insurer reported lower enrollment in Silver ACA plans. Members are shifting to cheaper tiers as federal subsidies expire.
Shares of Centene Corporation experienced a significant decline on Tuesday, falling as much as 13% after company executives reported a sharper-than-anticipated drop in memberships within certain Affordable Care Act (ACA) plans. During a presentation at a healthcare conference hosted by Barclays PLC, Chief Executive Officer Sarah London detailed the shifting distribution of members across the various metal tiers that define the ACA marketplace.
London noted that while the overall mix of plans remains consistent with internal projections shared in early February, the silver tier now accounts for just under 50% of the total membership. This represents a lower percentage than in previous years. The company currently expects mid-30% of its members to be enrolled in bronze plans and a high-teens percentage in gold plans.
