Centene's Meridian Unit Wins Michigan Contract for HIDE SNP Plan
Centene Corporation CNC unveiled that its Michigan subsidiary, Meridian Health Plan of Michigan, got chosen by the Michigan Department of Health and Human Services (“MDHHS”) to deliver integrated Medicare and Medicaid services to dually eligible residents via a new Highly Integrated Dual Eligible Special Needs Plan ("HIDE SNP").
The new program, likely to come into effect on Jan. 1, 2026, is set to replace Michigan's Health Link pilot program, an integrated healthcare plan serving Michigan adults aged 21 and older who are enrolled in both Medicare and Medicaid. The above-mentioned transition from a Medicare-Medicaid Plan ("MMP") to MI Coordinated Health, a HIDE SNP, will be carried out in collaboration with the Centers for Medicare and Medicaid Services.
Meridian will benefit from the opportunity to continue its collaborative work with the community groups, providers and local health organizations of Michigan and subsequently, gain an in-depth understanding of the diversified healthcare needs of the statewide residents. This, in turn, will enable it to offer better whole-person care and bring about improved health outcomes for the dually eligible individuals of Michigan.
The Centene unit boasts an extensive presence across Michigan and providing innovative and equitable care for a substantial period has further provided an impetus to its statewide footprint. Presently, Meridian caters to more than 540,000 members in Michigan, among which MMP and Medicare Dual Eligible Special Needs members’ count totals around 6000 and 13,500-plus, respectively. The unit remains one of the nine managed care organizations selected to deliver enhanced healthcare services through the HIDE SNP program.
The Centene unit was also awarded a Medicaid contract by the MDHHS in April 2024, under which it can continue offering Medicaid health plans across the state as part of the Comprehensive Health Care Program.
Benefits of Contract Wins to Centene
Contract wins similar to the latest one provide an opportunity for health insurers to attract new members as well as retain existing ones within their plans and Centene is no exception to the trend. A growing customer base brings higher premiums, which usually account for a major chunk of a health insurer’s top line.
Its total membership was 28.5 million as of June 30, 2024. Meanwhile, premiums rose 4.6% year over year in the first half of 2024. CNC makes steadfast efforts to upgrade its health plans from time to time either with the help of provider collaborations or significant investments.
CNC’s Share Price Performance & Zacks Rank
Shares of Centene have risen 1% in the past three months compared with the industry’s 2.8% growth.
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CNC currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks from the Medical space are Addus HomeCare Corporation ADUS, DaVita Inc. DVA and Encompass Health Corporation EHC. Addus HomeCare sports a Zacks Rank #1 (Strong Buy) at present, and DaVita and Encompass Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.45%. The consensus estimate for ADUS’ 2024 earnings and revenues indicates an improvement of 13.5% and 8.1%, respectively, from the 2023 reported figures.
The consensus estimate for Addus HomeCare’s earnings has moved 1.4% north in the past 60 days. Shares of ADUS have gained 9.8% in the past three months.
DaVita’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.24%. The consensus estimate for DVA’s 2024 earnings and revenues implies an improvement of 18% and 5.4% from the respective 2023 figures.
The consensus estimate for DaVita’s 2024 earnings has moved 0.9% north in the past 60 days. Shares of DVA have gained 20.3% in the past three months.
Encompass Health’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.12%. The consensus estimate for EHC’s 2024 earnings and revenues indicates an improvement of 14.8% and 10.6%, respectively, from the 2023 figures.
The consensus estimate for Encompass Health’s 2024 earnings has moved 0.7% north in the past 60 days. Shares of EHC have gained 13.1% in the past three months.
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DaVita Inc. (DVA) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
Addus HomeCare Corporation (ADUS) : Free Stock Analysis Report
Encompass Health Corporation (EHC) : Free Stock Analysis Report