By Katherine Hamilton

Centene is withdrawing its previous full-year earnings guidance after reviewing data on the health-insurance market that indicates growth is lower than expected.

Based on a preliminary analysis of new data about the health-insurance market, the provider of government-sponsored and commercial health insurance now expects adjusted earnings per share could be $2.75 lower than previously anticipated.

Data for 22 states showed implied aggregate market morbidity, which is the rate of disease and injury among people enrolled in healthcare, was significantly higher than and inconsistent with the information used to inform Centene's prior guidance. Overall market growth was also lower than projected, Centene said Tuesday.

Centene's latest analysis results in a reduction to its previous full-year net risk adjustment revenue transfer expectation of about $1.8 billion, which corresponds to a drop in earnings. Centene in April guided for $7.25 in adjusted earnings per share.

The new estimate accounts for the 22 states included in its analysis, and Centene doesn't yet have data on the seven other states in its marketplace coverage, it said. It expects to log an additional reduction once it has that data.

Centene has started the process of refiling 2026 marketplace rates to reflect a higher projected baseline of morbidity, it said. It plans to take corrective pricing actions next year in states representing a majority of its marketplace membership.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

July 01, 2025 17:23 ET (21:23 GMT)

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