Centene (CNC) Expands Medicare Advantage Offerings in 36 States
Centene Corporation CNC unveiled the broadening of its Medicare Advantage offerings for next year.
The leading health insurance company will provide a wide array of Medicare Advantage plans in 1,575 counties across 36 states during the 2022 Medicare Annual Enrollment Period (AEP).
With people still bearing the brunt of the COVID-19 pandemic, the leading health insurer took this step to help families manage their medical expenses effectively. Through access to affordable and quality Medicare plans, seniors and families will be able to experience better health outcomes.
It is noteworthy that seniors have been more vulnerable to health issues aggravated by the COVID-19 pandemic so far. Medicare Advantage is poised to grow on the rise in aging US population.
During the 2022 Medicare Annual Election Period (AEP), which will start Oct 15 and run through Dec 7 this year, the plans available for purchase will be extensive and cost-effective as well as include several enhanced benefits.
This leading health insurance company serves more than 1.1 million Medicare Advantage enrollment across 33 states. The company will provide the plans in 327 new counties starting 2022 and three new states, namely Massachusetts, Nebraska and Oklahoma, thus bringing the count of Medicare Advantage states to 36. The company will increase its Medicare Advantage presence by 26% in 2022.
The company is taking up various initiatives to bolster its Medicare business. Last month, management confirmed that it will consolidate its Medicare brands, such as Allwell, Health Net, Fidelis Care, Trillium Advantage, 'Ohana Health Plan and TexanPlus under one unified brand called Wellcare.
In the last reported quarter, the Zacks Rank #3 (Hold) company delivered another quarter of strong MA membership growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Centene to Benefit From Robust Medicare Business
Centene boasts a strong Medicare business across the United States, which has been performing well for quite a long time.
The WellCare acquisition, which was completed in January 2020, has immensely benefited the company’s Medicare business ever since.
In fact, it paved the way for not only a highly effective Medicare platform but also enabled Centene to offer a diversified and enhanced health care solutions.
The MA market seems attractive for the company, considering the surge in enrollment figures and a growing U.S. aging population. It is worth mentioning that MA plans remain the preferred choice for consumers owing to several bundled benefits, improved care coordination and affordability, which make for better options compared to the traditional Medicare plans.
Centene remains well-poised to benefit from a strong Medicare business through constant partnerships and extension of product offerings devised per the needs of several communities it serves.
All these initiatives along with its prudent operating performance, strong inorganic growth and solid fundamentals poise it well for long-term growth.
Other healthcare providers like Cigna Corporation CI and UnitedHealth Group Incorporated UNH also declared their 2022 MA and prescription drug plans recently.
Year to date, shares of the health insurer have gained 4.2%, underperforming its industry’s growth of 9.2%. Another company in the same space is Molina Healthcare, Inc. MOH, which has rallied 27% in the same time frame.
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