Centene Corporation (CNC) SEC Filings & Earnings Calls

No new risk introduced; debt reduction is credit positive.

CFO transition risk; orderly but key leadership change.

“CFO stepping down; successor named with transition period.”

Medicaid Membership Decline

“Managed care membership of 25.9 million, a decrease of 2.1 million members, or (8)% year-over-year.” · word for word

Regulatory Policy Uncertainty

“The OBBBA, passed in July 2025, includes requirements that may reduce the number of members eligible for state Medicaid Expansion programs by requiring work or community engagement by members and for state Medicaid agencies to redetermine member eligibility at more frequent intervals, along with adding a "Cost Sharing" or "Co-Pay" for certain medical service”

California UIS Transition

“Effective January 1, 2027, the State of California will transition the Medi-Cal Unsatisfactory Immigration Status (UIS) population from managed care to the fee-for-service delivery system. As a result, we expect a reduction in California Medicaid membership and associated premium revenue beginning in 2027.” · word for word

Contract Protest Risk

“Further, we are in the process of protesting the results of Medicaid procurement awards in Georgia and Texas. If these protests are not successful, our future results of operations would be impacted.” · word for word

Membership decline, particularly in Marketplace and Medicaid.

“Total at-risk membership 25.9M vs 28.0M; Marketplace 3.5M vs 5.9M.”

Guidance includes ~$0.50 of non-recurring items.

“Guidance increase resulting from underlying strength of the business, including approximately $0.50 of non-recurring items in Medicare and Commercial segments.” · word for word

Marketplace membership decline of 36% YoY; higher acuity among Silver Tier members.

“Marketplace membership 3,582,200 vs 5,626,000 prior year; Commercial HBR of 75.3%, slightly above expectations, primarily reflecting higher acuity among Marketplace Silver Tier members.”

Medicaid membership decline of 4% YoY.

“Total Medicaid membership 12,426,900 vs 12,958,800 prior year.”

Medicaid Redetermination Membership Decline

“Since March 31, 2023, eligibility redeterminations are the primary driver of our Medicaid membership decline.” · word for word

Elevated Medical Cost Trend

“We continue to observe and respond to elevated medical cost trend impacting the industry in recent years.” · word for word

Marketplace Regulatory and Membership Risk

“The combined effect of the expiration of the Enhanced APTCs and the Final Rule reduced 2026 Marketplace membership in the first quarter compared to 2025.” · word for word

Contract Protest and Procurement Risk

“Further, we are in the process of protesting the results of Medicaid procurement awards in Georgia and Texas. If these protests are not successful, our future results of operations would be impacted.” · word for word

Federal Securities Class Action

“On July 9, 2025, a putative federal securities class action... was filed against the Company and certain of its executives... The plaintiffs... allege that the Company made false and misleading statements with respect to the Company's 2025 earnings guidance.” · word for word

Marketplace Morbidity Risk

“Led the industry in understanding the implications of the changes in morbidity of the Marketplace population that we became aware of late in the second quarter of 2025 and took corrective pricing actions for 2026 in states covering 95% of Marketplace membership.” · word for word

Medicaid Rate Pressure

“Advocated with our Medicaid state partners for increases in rates to reflect more recent experience.” · word for word

Regulatory and Legal Risk

“In August 2025, several law firms, including Hagens Berman, announced a class-action lawsuit against Centene and its executives.” · word for word

Medicare Profitability Risk

“Strategically designed our 2026 Medicare Advantage bid and pricing strategy with a focus on profitability.” · word for word

Debt redemption reduces outstanding notes but uses cash; remaining $1.19B notes still outstanding.

“Following the redemption, approximately $1,186,664,000 of the 2027 Notes will remain outstanding.” · word for word

No new risks disclosed; standard forward-looking cautionary language.

“Standard risk factor language, no specific new risks.”

Medical cost trend acceleration

“In 2025, we have experienced an accelerated increase in medical cost trend. The drivers of this trend include increasing medical demand, expanded access to care facilitated by program changes at the state level, and the rapid release and availability of new, high-cost pharmaceuticals.” · word for word

Regulatory and legislative changes reducing enrollment and increasing morbidity

“The OBBBA, passed in July 2025, includes requirements that may reduce the number of members eligible for state Medicaid Expansion programs by requiring work or community engagement by members and for state Medicaid agencies to redetermine member eligibility at more frequent intervals” · word for word

High debt level

“As of December 31, 2025, we had consolidated indebtedness of $17.4 billion.” · word for word

Pending divestiture execution risk

“In December 2025, we signed a definitive agreement to divest the remaining Magellan Health businesses. As a result, we recorded non-cash impairment charges associated with the pending divestiture totaling $513 million, or $389 million after-tax.” · word for word

Marketplace rate filing risk

“If the states increase the tax rates applicable to our Marketplace line of business during 2026, we cannot offset those increases by increasing premiums, as our Marketplace rates were approved and determined in 2025, which could have a material impact on the profitability of our Marketplace products” · word for word

Magellan divestiture impairment and ongoing restructuring risk.

“Non-cash impairment charges $513M associated with pending Magellan divestiture.”

Medicaid membership decline of 4% YoY; HBR volatility in Commercial segment.

“Medicaid membership down from 13.0M to 12.5M; Q4 Commercial HBR 95.4% 100bps above expectations.”

GAAP loss guidance indicates significant non-cash charges or impairments; adjusted EPS low relative to GAAP loss.

“GAAP diluted loss per share not to exceed $(12.85) vs adjusted diluted EPS of at least $2.00.”

Massive goodwill impairment of $6.7B indicates potential overpayment for past acquisitions and reduces equity base.

“$6.7 billion non-cash goodwill impairment, resulting in a GAAP loss and corresponding reduction of retained earnings” · word for word

Elevated Medicaid HBR of 93.4% driven by behavioral health and home health costs; retroactive revenue adjustment provides only temporary benefit.

“Medicaid HBR of 93.4% in the third quarter, including an approximate 40 basis point benefit from a retroactive revenue adjustment” · word for word

Marketplace medical cost increase and lower risk adjustment revenue pressuring HBR.

“increased Marketplace medical costs, lower Marketplace estimated risk adjustment revenue” · word for word

IRA program changes impacting PDP business profitability.

“program changes in the PDP business as a result of the Inflation Reduction Act (IRA)” · word for word

Medicaid Redetermination Membership Decline

“Since March 31, 2023, redeterminations are the primary driver of our Medicaid membership decline.” · word for word

Marketplace Morbidity and Risk Adjustment Pressure

“We completed the process of refiling 2026 policy year rates during the third quarter of 2025 to reflect a higher projected baseline of Marketplace morbidity than previously expected.” · word for word

Medicare Advantage Premium Deficiency Reserve

“The premium deficiency reserve was increased to $270 million in the first quarter of 2025, to $389 million in the second quarter of 2025 and decreased by $107 million to $282 million in the third quarter of 2025 based on the progression of earnings during the year (with higher earnings at the beginning of the year and lower at the end of the year, given cost” · word for word

OBBBA Medicaid Expansion Impact

“The OBBBA, passed in July 2025, includes requirements that may reduce the number of members eligible for state Medicaid Expansion programs by requiring work or community engagement by members and for state Medicaid agencies to redetermine member eligibility at more frequent intervals, along with adding a 'Cost Sharing' or 'Co-Pay' for certain medical service” · word for word

Marketplace APTC Expiration Membership Decline

“We anticipate that the combined effect of the expiration of the enhanced APTCs, the Final Rule, and the OBBBA will reduce 2026 Marketplace membership and continue to increase the overall morbidity of the Marketplace population.” · word for word