** Shares of health insurer Centene CNC.N fall 2% to $60.35 premarket

** Company's medical spending is slightly above Street estimates, as it faces high costs in its government-backed Medicaid plans for lower-income groups

** CNC reports Q1 medical loss ratio — the percentage of premiums spent on medical care — of 87.5%, compared with analysts' estimate of 87.44% - data compiled by LSEG

** Insurer expects costs to ease as the gap between what it spends on care for Medicaid members and the amount states pay insurers to cover those costs is narrowed

** Company posts Q1 adjusted profit of $2.90 per share, beating analysts' estimate of $2.54 per share, helped by strength in its commercial health insurance plans

** As of last close, CNC shares up 1.7% YTD

(Reporting by Siddhi Mahatole)

((siddhi.mahatole@thomsonreuters.com))