Still-Dominant Centene Faces More Exchange Competition With Chart: As Centene’s ACA Footprint Expanded, Market Became More Concentrated

Centene Corp., which has come to dominate the Affordable Care Act exchange market by continuing to expand even when other carriers pulled back, is facing more competition now that the market has stabilized and insurer participation has increased. In recent notes to investors, Wall Street analysts shared diverging views about what that means for Centene’s 2021 earnings, but they — and other experts — generally agree that the insurer won’t be dethroned as the king of the exchanges anytime soon.

Citi analyst Ralph Giacobbe, in a Nov. 16 report, advised investors that he was placing a “negative catalyst watch” on Centene due to the new competitive pressures it’s facing. Centene, he observed, “was displaced as the lowest priced plan in a number of markets,” and although price is only one factor in an individual’s decision of which plan to buy, Centene “has been successful in part due to its lower cost offering historically.” As a result, the insurer “will have to rely on retention and new market entry to offset competitive pressures, which could prove challenging and may stunt growth relative to expectations,” Giacobbe wrote.

0 Comments
© 2022 MMIT
Leslie Small

Leslie Small

Leslie has been reporting and editing in various journalism roles for nearly a decade. Most recently, she was the senior editor of FierceHealthPayer, an e-newsletter covering the health insurance industry. A graduate of Penn State University, she previously served in editing roles at newspapers in Pennsylvania, Virginia and Colorado.

Related Posts

person-holding-a-pencil
September 30

Medicaid Plans Aren’t Properly Reporting MLR Data, OIG Finds

READ MORE
stethoscope-bill-and-pills
September 30

How Would Adjusting the Marketplace Coverage Benchmark to a Gold Plan Affect Affordability?

READ MORE
department-of-justice-building
September 30

Loss in UnitedHealth/Change Trial May Not Lower DOJ’s Deal-Blocking Appetite

READ MORE

GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND

Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today