Centene (CNC) to Provide Managed Care for SoonerSelect Program

Centene Corporation CNC announced that it was chosen to provide managed care for Oklahoma Health Care Authority’s SoonerSelect and SoonerSelect Children’s Specialty programs.

This move bodes well for CNC as it aims to provide better health outcomes. The company would provide innovative healthcare solutions to drive better outcomes and remove barriers to care. It would also partner with healthcare providers gaining insight into the diversified needs of the local members and their families.

Membership growth usually sounds good for CNC since premiums derived from its health insurance plans majorly contribute to the top line. As of Mar 31, 2023, Centene’s Medicaid membership improved 8% year over year.

In addition, CNC’s continuous efforts to boost provider collaborations and extend value-based care through its Medicaid business led the business to conquer a significant share of the Medicaid market in the United States. As CNC continues to leverage the Medicaid business to penetrate more states, its customer base is expected to grow simultaneously.

The SoonerSelect program provides behavioral, physical healthcare and pharmacy benefits to approximately 840,000 Medicaid recipients in Oklahoma. The SoonerSelect Children’s Specialty plan serves Oklahoma’s children in receiving adoption assistance, foster care as well as those involved in the juvenile justice system. Centene is expected to provide unparalleled services to people in Oklahoma due to its position as a leading managed care provider.

Price Performance

Shares of Centene have gained 7% quarter to date compared with the industry’s rise of 2.8%.

 

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Zacks Rank & Key Picks

Centene currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical sector are Amphastar Pharmaceuticals, Inc. AMPH, Alcon Inc. ALC and The Ensign Group, Inc. ENSG. AMPH sports a Zacks Rank #1 (Strong Buy), and ALC and ENSG carry a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Amphastar Pharmaceuticals outpaced estimates in three of the last four quarters, meeting once, the average surprise being 33.8%. The Zacks Consensus Estimate for AMPH’s 2023 earnings suggests an improvement of 20.8%, while the same for revenues indicates growth of 17.4% from the corresponding year-ago reported figure. The consensus mark for AMPH’s 2023 earnings has moved 16.7% north in the past 30 days.

The bottom line of Alcon outpaced estimates in three of the last four quarters, meeting once, the average surprise being 8.9%. The Zacks Consensus Estimate for ALC’s 2023 earnings suggests an improvement of 17.9%, while the same for revenues indicates growth of 8% from the corresponding year-ago reported figure. The consensus mark for ALC’s 2023 earnings has moved 2.3% north in the past 30 days.

The bottom line of The Ensign Group outpaced estimates in one of the last four quarters, meeting twice and missing once, the average surprise being 0.5%. The Zacks Consensus Estimate for ENSG’s 2023 earnings suggests an improvement of 13.5%, while the same for revenues indicates growth of 22.2% from the corresponding year-ago reported figure. The consensus mark for ENSG’s 2023 earnings has moved 0.2% north in the past 30 days.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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