Health insurer Centene saw its revenue increase in the third quarter of fiscal year 2018 as its managed Medicaid business grew.
Here are five things to know:
1. Centene's total revenues increased 36 percent year over year to $16.2 billion. The increase largely reflected the health insurer's Fidelis Care acquisition, growth in its ACA marketplace business in 2018 and other expansions into new programs.
2. The increases were partially offset by the removal of the in-home support services program from its California Medicaid contract in January 2018. Centene also recorded a pretax charge of $110 million upon the expiration of its contract with the Department of Veterans Affairs, and a pretax expense of $30 million related to a contribution to its charitable fund.
3. In the third quarter of 2018, Centene grew its managed care membership by 17 percent year over year to 14.4 million members.
4. Centene received four stars from CMS for 2019. As a result, the rating will positively affect quality bonus payments for its Medicare Advantage plans in 2020.
5. After accounting for $399 million in acquisition expenses, as well as other nonoperating gains, Centene ended the third quarter with net income of $19 million, compared to net income of $205 million reported in the same period a year prior.