Centene (CNC) Nevada Unit Gets Contract to Aid Medicaid Members
Centene Corporation CNC recently disclosed that its Nevada subsidiary SilverSummit Healthplan has received a contract from the Nevada Department of Health and Human Services — Health Care Financing and Policy. The contract win is expected to aid Medicaid beneficiaries of Nevada.
SilverSummit Healthplan has been working closely with the state, regional providers and community partners for more than four years with an aim to serve the diversified health needs of the Nevada community. Presently, it caters to over 77,000 members through the Nevada Medicaid program, which extends physical and behavioral healthcare along with pharmacy benefits to Temporary Assistance for Needy Families (TANF), State Children's Health Insurance Program (SCHIP) and Medicaid Expansion beneficiaries totaling more than 760,000.
Subject to regulatory approval, the contract is expected to be effective on Jan 1, 2022. It is likely to enable Centene’s unit to keep offering managed care services across Clark and Washoe Counties paving way for improved health outcomes across Nevada. The company relies on innovation, value-based care and leverages provider partnerships to offer enhanced healthcare services and programs at affordable costs for the state’s residents.
As Centene’s subsidiary already boasts of a solid base of Medicaid members across Nevada, the latest contract win is expected to strengthen Centene’s presence across the state further. Besides Medicaid, the company also provides Health Insurance Marketplace plans and Medicare Advantage plans with prescription drug coverage across the state. Through such a wide array of plans, the healthcare provider aims to reach every corner of the state including the underserved ones and thereby eliminate hindrances in the way of members opting for care.
Similar to the latest contract win of Centene, another healthcare provider Molina Healthcare, Inc. MOH recently received a Medicaid managed care contract from the Nevada Department of Health and Human Services — Division of Health Care Financing and Policy (“DHCFP”).
Coming back, Centene’s Medicaid business remains well-poised for growth on the back of constant efforts to devise cost-effective health plans, growing membership and contract wins similar to the latest one. All these factors have been driving the company’s top-line growth for quite some time. Recently, Centene’s Ohio subsidiary was presented with a contract from the Ohio Department of Medicaid in a bid to improve health outcomes of the state’s Medicaid members.
The recent move is a well-timed one, considering the ample growth prospects prevalent in the Medicaid market primarily intended for low-income individuals. The recent economic downturn, wherein people witnessed job losses and reduction in income, resulted in increased number of people becoming eligible for Medicaid coverage. This has led to increased Medicaid enrolment. Besides, continuous program expansions across several states can be cited as one of the primary factors driving the Medicaid market growth. Also, estimates of increased Medicaid spending reflecting consumers’ optimist sentiment toward Medicaid programs have been provided by the Centers for Medicare & Medicaid Services (CMS). It estimated that Medicaid spending is likely to rise at an average of 5.7% per year over the 2021-2023 period, which is higher from the 2020 figure of 4.5%. During the 2024-2028 timeline, the same is expected to grow at an average rate of 5.8%.
Other healthcare providers boasting of a strong Medicaid business across the United States include those of Humana Inc. HUM and Cigna Corporation CI.
Zacks Rank & Price Performance
Shares of Centene, which carries a Zacks Rank #3 (Hold), have gained 6.3% year to date, compared with the industry’s rally of 16.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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