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Most health insurers saw their costs fluctuate during the pandemic, but have benefited in recent quarters from declining COVID-related hospitalizations. Larger rival UnitedHealth (NYSE:UNH) recently said medical costs were more predictable with the world in the third year of COVID-19.
UnitedHealth and Cigna (NYSE:CI) also largely managed to keep medical costs in check despite a so-called “tripledemic” of an early flu season coinciding with COVID and respiratory syncytial virus cases as demand for healthcare services remained within the ranges of a typical fourth quarter.
Centene said its quarterly health benefits ratio, which measures medical costs in relation to premiums collected, stood at 88.7%, better than estimates of 88.8%, according to Refinitiv data from six analysts.
But compared to a year earlier, the ratio increased due to higher Medicaid utilization and flu-related costs. Medicaid program helps cover medical costs for some people with limited income and resources.
Excluding items, the company reported a profit of 86 cents per share, slightly better compared to Wall Street estimates of 85 cents per share.
Revenue from Centene’s Medicare health insurance business rose about 24% to $5.45 billion from a year earlier.
