The St. Louis-based Medicaid managed care insurer, which has emerged recently as the dominant player on the exchanges, closed its $3.75 billion acquisition of New York-based not-for-profit insurer Fidelis Care earlier this month and became the leading Medicaid plan in California, Florida, Texas and New York. That deal also boosted Centene’s ACA exchange membership by more than 220,000.
“Centene’s strong fundamentals will be enhanced by the strategic and financial benefits of our recently closed Fidelis Care acquisition,” Centene CEO Michael Neidorff said in Tuesday’s earnings announcement.
Centene posted revenues for the three months ended June 30 of $14.2 billion, an increase of 18.6% over the same period a year ago. Its net income totaled $299 million, up 18.7% over the second quarter of 2017.
Revenue was driven by membership growth. Centene grew its commercial membership by 17.7% to 2.6 million, as its ACA exchange membership reached 1.5 million, an increase of 38.6%.
Meanwhile, its Medicaid membership grew by 16,000 members to 7.2 million, and Medicare membership grew 5% to 343,800. In total, Centene covered 12.8 million customers in the second quarter, up 4.8% over the same time in 2017.
The insurer also said its revenue increased by about $500 million because of “pass through payments” from the State of California that it received in the second quarter.
Centene’s medical loss ratio improved to 85.7% in the second quarter of 2018 compared with 86.3% at the same time a year ago.