By Sriparna Roy
March 10 (Reuters) - Centene CNC.N shares fell as much as 13% on Tuesday after company executives flagged the health insurer is seeing lower number of members in some Affordable Care Act plans, also known as Obamacare.
The ACA marketplace uses metal levels to categorize plans. There are four plan levels available - Bronze, Silver, Gold and Platinum. Each metal level offers the same essential health benefits but differs in the percentage of costs the insurer pays compared with the individual's payment.
The metal tier mix is still consistent with what was shared in early February, CEO Sarah London said at the Barclays Healthcare Conference, noting the company expects mid-30% of membership in bronze, high-teens percentage in gold and just under 50% of members in silver, which is lower than it has been in the past years.
Bronze health plans offer the lowest monthly premiums but the highest out-of-pocket costs, while Silver members pay higher premiums but lower out-of-pocket expenses, covering about 70% of costs.
The company said it always anticipated to land toward the high-end or slightly above its industry attrition estimate of high-teens to mid-30% decline.
Shares of peers Molina MOH.N and Oscar Health OSCR.N also slipped lower.
The insurer is also seeing some higher utilization patterns in specialty pharmacy isolated to the silver metal tier, driven by categories like anti-inflammatory, gastrointestinal, and dermatological conditions.
"It sounds like initial indications from Centene at this conference are that a big chunk has left, and perhaps the remaining members are going to be a challenge on the acuity front, which appears to be driving down shares today," said Julie Utterback, analyst at Morningstar.
Americans face high healthcare costs as monthly premiums for many soared due to the expiration of COVID pandemic-expanded health insurance subsidies.
The company also said it has seen members move into lower premium paying tiers as a away to not lose coverage.
Centene reaffirmed its 2026 adjusted profit forecast, which is projected to exceed $3 per share.
(Reporting by Sriparna Roy in Bengaluru; Editing by Krishna Chandra Eluri)
((Sriparna.Roy@thomsonreuters.com;))