Centene, Molina Beat Expectations in 3Q Amid Medicaid Upheaval

Centene Corp. and Molina Healthcare, Inc., two of the largest managed Medicaid insurers in the U.S., both beat expectations in their third-quarter earnings reports. While the companies saw higher care utilization among their Medicaid members, their medical loss ratios (MLRs) were better than investors anticipated.  

Wells Fargo analyst Stephen Baxter in an Oct. 25 note wrote that Centene’s Medicaid MLR of 93.1% was below the Wall Street consensus of 93.3% and “much better than feared.” Baxter also wrote in an Oct. 24 note that Molina’s Medicaid MLR of 90.5% “was above guidance but by less than feared” following UnitedHealth Group’s and Elevance Health, Inc.’s earnings releases from earlier this month.