Centene's (CNC) Contract Win to Aid Medicaid Members in Ohio
Centene Corporation CNC recently unveiled that Buckeye Health Plan, the company’s Ohio unit, has received a Medicaid contract from the Ohio Department of Medicaid.
For nearly two decades, Buckeye has been working intensely to expand access to member-focused programs for catering to the unique health needs of the Ohio community. The unit boasted of being the most rapidly expanding Medicaid plan in the state with respect to market share last year. In the same time frame, Buckeye catered to over 420,000 members across Ohio.
Expected to be effective in early 2022, the new contract is likely to empower the Centene’s unit in continuing to offer enhanced healthcare services and programs, thereby resulting in better health outcomes for Ohio residents. Besides, Buckeye will introduce innovative technologies and local programs via collaborations with providers and community partners as part of the recent contract. These initiatives will be undertaken in order to address the specific needs of members and eliminate hindrances while availing care.
With Centene’s subsidiary already having a strong base of Medicaid members in Ohio, the latest contract win is expected to reinforce Centene’s presence across the state. Besides Medicaid, the company also offers Medicare-Medicaid Plan (MMP), Health Insurance Marketplace plans, Medicare Advantage plans and Prescription Drug Plans across Ohio.
The recent move seems to be a time opportune one as well, considering the ample growth prospects prevalent in the Medicaid market. Per a report published in McKinsey, continuous program expansions and inclination of complex high-needs populations toward managed care programs can be cited as one of the major factors driving growth across the Medicaid market. The same report highlighted another important fact put forward by Centers for Medicare & Medicaid Services (CMS), wherein the Medicaid is anticipated to evolve into a roughly $1 trillion program by 2026 from a $629 billion program in 2018.
Centene has a robust Medicaid business in place through which it has been devising cost-effective health plans and reaching out to various parts of the country. The number of people served through the company’s Medicaid business rose 11.1% as of Jun 30, 2021. Growing membership and several contract wins have been providing an added boost to the company’s revenues.
The leading managed care organization has been subject to several contract wins and renewed agreements in the past. Last month, Centene initiated offering Medicaid managed care services across North Carolina through a new statewide contract. It also received a statewide contract in July 2021 as a result of which the company will continue to provide covered services to eligible Medicaid and Children's Health Insurance Program (CHIP) members across Hawaii.
Other healthcare providers boasting of a strong Medicaid business across the United States include those of Molina Healthcare, Inc. MOH, Humana Inc. HUM and Cigna Corporation CI.
Zacks Rank & Price Performance
Shares of Centene, which carries a Zacks Rank #3 (Hold), have gained 9% year to date, compared with the industry’s rally of 15.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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