Centene Corporation Reports 2017 Third Quarter Results & Updates 2017 Guidance
In summary, the 2017 third quarter results were as follows:
Total revenues (in millions) |
$ |
11,898 |
||
Health benefits ratio |
88.0 |
% |
||
SG&A expense ratio |
9.0 |
% |
||
GAAP diluted EPS |
$ |
1.16 |
||
Adjusted Diluted EPS (1) |
$ |
1.35 |
||
Total cash flow provided by operations (in millions) |
$ |
97 |
(1) A full reconciliation of Adjusted Diluted EPS is shown in the Outlook section of this release. |
The following discussions, with the exception of cash flow information, are in the context of continuing operations.
Third Quarter Highlights
September 30, 2017 managed care membership of 12.3 million, an increase of 874,900 members, or 8% compared to the third quarter of 2016.- Total revenues for the third quarter of 2017 of
$11.9 billion , representing 10% growth, compared to the third quarter of 2016. - Health benefits ratio (HBR) of 88.0% for the third quarter of 2017, compared to 87.0% in the third quarter of 2016.
- Selling, general and administrative (SG&A) expense ratio of 9.0% for the third quarter of 2017, compared to 9.2% for the third quarter of 2016.
- Adjusted SG&A expense ratio of 8.9% for the third quarter of 2017, compared to 9.1% for the third quarter of 2016.
- Operating cash flow of
$97 million for the third quarter of 2017 and$1,039 million for the nine months endedSeptember 30, 2017 . - Diluted EPS for the third quarter of 2017 of
$1.16 , compared to$0.84 for the third quarter of 2016. - Adjusted Diluted EPS for the third quarter of 2017 of
$1.35 , compared to$1.12 for the third quarter of 2016.
Other Events
- In
October 2017 , the Company announced the early termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for itsFidelis Care acquisition. InSeptember 2017 , the Company signed a definitive agreement under whichFidelis Care will become the Company's health plan inNew York State . Under the terms of the agreement, the Company will acquire substantially all of the assets ofFidelis Care for$3.75 billion , subject to certain adjustments. The transaction is expected to close in the first quarter of 2018, subject to various closing conditions and receipt ofNew York regulatory approvals, including approvals under the New York Not-for-Profit Corporation Law. - In
October 2017 , theCenters for Medicare and Medicaid Services (CMS) published updatedMedicare Star quality ratings for the 2018 rating year. The 2018 rating year will affect quality bonus payments for Medicare Advantage plans in 2019. The results indicate that one ofHealth Net of California, Inc.'s Medicare Advantage plans (H0562) will move to a 3.5 Star rating from a 4.0 Star rating for the 2018 rating year. The effect of this Star rating change would lower the Company's parent Star rating for the 2018 rating year from 4.0 Stars to 3.5 Stars. The Company intends to appeal. - In
August 2017 , ourIllinois subsidiary,IlliniCare Health , was awarded the state-wide contract for the Medicaid Managed Care Program including children who are in need through theDepartment of Children and Family Services (DCFS)/Youth in Care by theIllinois Department of Healthcare and Family Services (HFS). The new agreement has a four-year term, with the option to renew the contract for up to an additional four years, and is expected to commence onJanuary 1, 2018 . - In
August 2017 , Centurion was recommended for a contract award by theTennessee Department of Correction to continue providing inmate health services. This contract is expected to commence in the first quarter of 2018.
Accreditations & Awards
- In
September 2017 , FORTUNE magazine announcedCentene's position of #19 in its third-annual "Change the World" list of the top 50 companies that have made an important social or environmental impact through their profit-making strategy and operations. Companies are recognized for, and competitively ranked on, innovative strategies that positively impact the world. - In
September 2017 ,Health Net Federal Services, LLC , earned the Disease Management Accreditation fromURAC . InAugust 2017 ,Envolve Dental, Inc. , earnedURAC accreditations for Dental Plan and Health Management. In addition, Buckeye Health Plan, Coordinated Care of Washington,Louisiana Healthcare Connections ,CeltiCare Health , and New Hampshire Healthy Families earned Commendable Health Plan Accreditations fromNCQA . - In
September 2017 , FORTUNE magazine announcedCentene's position of #27 on the Fortune 100 Fastest Growing Companies for 2017. - In
August 2017 ,Centene was named to the 2017 list of the Best Places to Work for People with Disabilities, presented by theAmerican Association of People with Disabilities and theU.S. Business Leadership Network.
Membership
The following table sets forth the Company's membership by state for its managed care organizations:
|
|||||
2017 |
2016 |
||||
|
659,500 |
601,500 |
|||
|
89,900 |
57,700 |
|||
|
2,928,600 |
3,004,500 |
|||
|
852,600 |
732,700 |
|||
|
476,400 |
498,000 |
|||
|
251,000 |
236,700 |
|||
|
322,900 |
289,600 |
|||
|
127,300 |
145,100 |
|||
|
483,300 |
455,600 |
|||
|
48,300 |
45,300 |
|||
|
2,400 |
2,100 |
|||
|
9,500 |
9,400 |
|||
|
335,600 |
313,900 |
|||
|
272,100 |
104,700 |
|||
|
79,200 |
— |
|||
|
16,800 |
— |
|||
|
76,400 |
78,400 |
|||
|
7,100 |
7,100 |
|||
|
336,500 |
319,500 |
|||
|
209,700 |
218,400 |
|||
|
118,600 |
119,700 |
|||
|
22,100 |
21,600 |
|||
|
1,236,700 |
1,041,600 |
|||
|
1,600 |
1,700 |
|||
|
239,600 |
240,500 |
|||
|
70,200 |
75,100 |
|||
Total at-risk membership |
9,273,900 |
8,620,400 |
|||
TRICARE eligibles |
2,823,200 |
2,815,700 |
|||
Non-risk membership |
213,900 |
— |
|||
Total |
12,311,000 |
11,436,100 |
The following table sets forth our membership by line of business:
|
|||||
2017 |
2016 |
||||
Medicaid: |
|||||
TANF, CHIP & |
5,809,400 |
5,583,900 |
|||
ABD & LTC |
850,300 |
754,900 |
|||
|
467,400 |
465,300 |
|||
Commercial |
1,657,800 |
1,333,000 |
|||
Medicare & Duals (1) |
331,000 |
333,500 |
|||
Correctional |
158,000 |
149,800 |
|||
Total at-risk membership |
9,273,900 |
8,620,400 |
|||
TRICARE eligibles |
2,823,200 |
2,815,700 |
|||
Non-risk membership |
213,900 |
— |
|||
Total |
12,311,000 |
11,436,100 |
|||
(1) Membership includes Medicare Advantage, Medicare Supplement, Special Needs Plans, and Medicare-Medicaid Plans. |
The following table sets forth additional membership statistics, which are included in the membership information above:
|
|||||
2017 |
2016 |
||||
Dual-eligible (2) |
475,300 |
437,500 |
|||
|
1,024,000 |
582,600 |
|||
Medicaid Expansion |
1,105,000 |
1,048,500 |
|||
(2) Membership includes dual-eligible ABD & LTC and dual-eligible Medicare membership in the table above. |
Statement of Operations: Three Months Ended
- For the third quarter of 2017, total revenues increased 10% to
$11.9 billion from$10.8 billion in the comparable period in 2016. The increase over prior year was primarily a result of growth in theHealth Insurance Marketplace business in 2017 and expansions and new programs in many of our states in 2016 and 2017. This was partially offset by the moratorium of the Health Insurer Fee in 2017, lower membership in the commercial business inCalifornia as a result of margin improvement actions taken last year, and the addition of a competitor inGeorgia . Sequentially, total revenues remained relatively consistent with the second quarter of 2017. - HBR of 88.0% for the third quarter of 2017 represents an increase from 87.0% in the comparable period in 2016. The year-over-year increase is primarily a result of new or expanded health plans, which initially operate at a higher HBR, an increase in higher acuity members, and a premium rate reduction for California Medicaid Expansion effective
July 1, 2017 . - HBR increased sequentially from 86.3% in the second quarter of 2017. The increase is primarily attributable to the favorable risk adjustment in our
Health Insurance Marketplace business recorded in the second quarter of 2017, the previously mentioned California Medicaid Expansion premium rate reduction, and normal seasonality of the business. - The SG&A expense ratio was 9.0% for the third quarter of 2017, compared to 9.2% for the third quarter of 2016 and 9.3% for the second quarter of 2017. The year-over-year decrease in the SG&A expense ratio reflects the leveraging of expenses over higher revenues in 2017.
- The Adjusted SG&A expense ratio was 8.9% for the third quarter of 2017, compared to 9.1% for the third quarter of 2016 and 9.3% for the second quarter of 2017. The year-over-year decrease in the Adjusted SG&A expense ratio reflects the leveraging of expenses over higher revenues in 2017. Sequentially, the Adjusted SG&A expense ratio decreased primarily due to higher variable compensation expense in the second quarter as a result of higher earnings.
Balance Sheet and Cash Flow
At
Cash flow provided by operations for the three months ended
A reconciliation of the Company's change in days in claims payable from the immediately preceding quarter-end is presented below:
Days in claims payable, |
40 |
||
Timing of claims payments and the impact of new business |
2 |
||
Days in claims payable, |
42 |
||
Outlook
The table below depicts the Company's updated annual guidance for 2017. We have updated our guidance to reflect the following items:
- The favorable performance in the third quarter of 2017.
- An increase in our business expansion cost range from
$0.42 -$0.47 per diluted share to$0.46 -$0.51 per diluted share, reflecting additional Marketplace marketing and membership outreach efforts. - An increase in acquisition related expenses from
$5 million -$8 million to$20 million -$25 million .
As a result of the uncertainties surrounding cost sharing reduction (CSR) payments, the guidance within the table below does not include any impact of the defunding of CSR subsidies. If the CSR payments from the Federal Government for the fourth quarter of 2017 are not received, we expect the lack of those payments to have a
Full Year 2017 |
|||||||||
Low |
High |
||||||||
Total revenues (in billions) |
$ |
47.4 |
$ |
48.2 |
|||||
GAAP diluted EPS |
$ |
4.04 |
$ |
4.18 |
|||||
Adjusted Diluted EPS (1) |
$ |
4.86 |
$ |
5.04 |
|||||
HBR |
87.0 |
% |
87.4 |
% |
|||||
SG&A expense ratio |
9.4 |
% |
9.8 |
% |
|||||
Adjusted SG&A expense ratio (2) |
9.3 |
% |
9.7 |
% |
|||||
Effective tax rate |
39.0 |
% |
41.0 |
% |
|||||
Diluted shares outstanding (in millions) |
176.3 |
177.3 |
|||||||
(1) |
Adjusted Diluted EPS excludes amortization of acquired intangible assets of |
(2) |
Adjusted SG&A expense ratio excludes Health Net and Fidelis acquisition related expenses of |
Conference Call
As previously announced, the Company will host a conference call
Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 in the
A webcast replay will be available for on-demand listening shortly after the completion of the call for the next twelve months or until
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally to allow management to focus on period-to-period changes in the Company's core business operations. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Specifically, the Company believes the presentation of non-GAAP financial information that excludes amortization of acquired intangible assets, acquisition related expenses, as well as other items, allows investors to develop a more meaningful understanding of the Company's performance over time. The tables below provide reconciliations of non-GAAP items ($ in millions, except per share data):
Three Months Ended |
Nine Months Ended |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
GAAP net earnings from continuing operations |
$ |
205 |
$ |
148 |
$ |
598 |
$ |
304 |
|||||||
Amortization of acquired intangible assets |
38 |
43 |
117 |
95 |
|||||||||||
Acquisition related expenses |
7 |
10 |
13 |
224 |
|||||||||||
Penn Treaty assessment expense (1) |
9 |
— |
56 |
— |
|||||||||||
Income tax effects of adjustments (2) |
(20) |
(5) |
(68) |
(106) |
|||||||||||
Adjusted net earnings from continuing operations |
$ |
239 |
$ |
196 |
$ |
716 |
$ |
517 |
(1) |
Additional expense for the Company's estimated share of guaranty association assessment resulting from the liquidation of Penn Treaty. |
(2) |
The income tax effects of adjustments are based on the effective income tax rates applicable to adjusted (non-GAAP) results. |
Three Months Ended |
Nine Months Ended |
Annual |
|||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||||
GAAP diluted earnings per share (EPS) |
$ |
1.16 |
$ |
0.84 |
$ |
3.39 |
$ |
1.90 |
|
||||||||
Amortization of acquired intangible assets (1) |
0.14 |
0.16 |
0.42 |
0.36 |
|
||||||||||||
Acquisition related expenses (2) |
0.02 |
0.12 |
0.05 |
0.97 |
|
||||||||||||
Penn Treaty assessment expense (3) |
0.03 |
— |
0.20 |
— |
|
||||||||||||
Adjusted Diluted EPS from continuing operations |
$ |
1.35 |
$ |
1.12 |
$ |
4.06 |
$ |
3.23 |
|
(1) |
The amortization of acquired intangible assets per diluted share presented above are net of an income tax benefit of |
(2) |
The acquisition related expenses per diluted share presented above are net of an income tax benefit (expense) of |
(3) |
The Penn Treaty assessment expense per diluted share is net of an income tax benefit of |
Three Months Ended |
Nine Months Ended |
Three Months |
|||||||||||||||||
2017 |
2016 |
2017 |
2016 |
2017 |
|||||||||||||||
GAAP SG&A expenses |
$ |
1,030 |
$ |
940 |
$ |
3,186 |
$ |
2,611 |
$ |
1,065 |
|||||||||
Acquisition related expenses |
7 |
10 |
13 |
224 |
1 |
||||||||||||||
Penn Treaty assessment expense |
9 |
— |
56 |
— |
— |
||||||||||||||
Adjusted SG&A expenses |
$ |
1,014 |
$ |
930 |
$ |
3,117 |
$ |
2,387 |
$ |
1,064 |
About
Forward-Looking Statements
The company and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act ("PSLRA") of 1995, including statements in this and other press releases, in presentations, filings with the
[Tables Follow]
CENTENE CORPORATION AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(In millions, except shares in thousands and per share data in dollars) |
|||||||
|
|
||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
4,281 |
$ |
3,930 |
|||
Premium and related receivables |
3,955 |
3,098 |
|||||
Short-term investments |
595 |
505 |
|||||
Other current assets |
829 |
832 |
|||||
Total current assets |
9,660 |
8,365 |
|||||
Long-term investments |
4,927 |
4,545 |
|||||
Restricted deposits |
138 |
138 |
|||||
Property, software and equipment, net |
1,003 |
797 |
|||||
|
4,712 |
4,712 |
|||||
Intangible assets, net |
1,428 |
1,545 |
|||||
Other long-term assets |
132 |
95 |
|||||
Total assets |
$ |
22,000 |
$ |
20,197 |
|||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Medical claims liability |
$ |
4,333 |
$ |
3,929 |
|||
Accounts payable and accrued expenses |
4,804 |
4,377 |
|||||
Unearned revenue |
568 |
313 |
|||||
Current portion of long-term debt |
4 |
4 |
|||||
Total current liabilities |
9,709 |
8,623 |
|||||
Long-term debt |
4,717 |
4,651 |
|||||
Other long-term liabilities |
901 |
869 |
|||||
Total liabilities |
15,327 |
14,143 |
|||||
Commitments and contingencies |
|||||||
Redeemable noncontrolling interests |
20 |
145 |
|||||
Stockholders' equity: |
|||||||
Preferred stock, |
— |
— |
|||||
Common stock, |
— |
— |
|||||
Additional paid-in capital |
4,310 |
4,190 |
|||||
Accumulated other comprehensive earnings (loss) |
9 |
(36) |
|||||
Retained earnings |
2,518 |
1,920 |
|||||
|
(197) |
(179) |
|||||
Total |
6,640 |
5,895 |
|||||
Noncontrolling interest |
13 |
14 |
|||||
Total stockholders' equity |
6,653 |
5,909 |
|||||
Total liabilities, redeemable noncontrolling interests and stockholders' equity |
$ |
22,000 |
$ |
20,197 |
CENTENE CORPORATION AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(In millions, except per share data in dollars) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Revenues: |
|||||||||||||||
Premium |
$ |
10,850 |
$ |
9,625 |
$ |
32,393 |
$ |
25,299 |
|||||||
Service |
571 |
590 |
1,634 |
1,603 |
|||||||||||
Premium and service revenues |
11,421 |
10,215 |
34,027 |
26,902 |
|||||||||||
Premium tax and health insurer fee |
477 |
631 |
1,549 |
1,794 |
|||||||||||
Total revenues |
11,898 |
10,846 |
35,576 |
28,696 |
|||||||||||
Expenses: |
|||||||||||||||
Medical costs |
9,543 |
8,376 |
28,278 |
22,072 |
|||||||||||
Cost of services |
437 |
504 |
1,334 |
1,386 |
|||||||||||
Selling, general and administrative expenses |
1,030 |
940 |
3,186 |
2,611 |
|||||||||||
Amortization of acquired intangible assets |
38 |
43 |
117 |
95 |
|||||||||||
Premium tax expense |
510 |
512 |
1,643 |
1,460 |
|||||||||||
Health insurer fee expense |
— |
129 |
— |
333 |
|||||||||||
Total operating expenses |
11,558 |
10,504 |
34,558 |
27,957 |
|||||||||||
Earnings from operations |
340 |
342 |
1,018 |
739 |
|||||||||||
Other income (expense): |
|||||||||||||||
Investment and other income |
51 |
33 |
137 |
80 |
|||||||||||
Interest expense |
(65) |
(57) |
(189) |
(142) |
|||||||||||
Earnings from continuing operations, before income tax expense |
326 |
318 |
966 |
677 |
|||||||||||
Income tax expense |
125 |
169 |
381 |
372 |
|||||||||||
Earnings from continuing operations, net of income tax expense |
201 |
149 |
585 |
305 |
|||||||||||
Discontinued operations, net of income tax benefit |
— |
(1) |
— |
(3) |
|||||||||||
Net earnings |
201 |
148 |
585 |
302 |
|||||||||||
(Earnings) loss attributable to noncontrolling interests |
4 |
(1) |
13 |
(1) |
|||||||||||
Net earnings attributable to |
$ |
205 |
$ |
147 |
$ |
598 |
$ |
301 |
|||||||
Amounts attributable to |
|||||||||||||||
Earnings from continuing operations, net of income tax expense |
$ |
205 |
$ |
148 |
$ |
598 |
$ |
304 |
|||||||
Discontinued operations, net of income tax benefit |
— |
(1) |
— |
(3) |
|||||||||||
Net earnings |
$ |
205 |
$ |
147 |
$ |
598 |
$ |
301 |
|||||||
Net earnings (loss) per common share attributable to |
|||||||||||||||
Basic: |
|||||||||||||||
Continuing operations |
$ |
1.19 |
$ |
0.87 |
$ |
3.47 |
$ |
1.95 |
|||||||
Discontinued operations |
— |
(0.01) |
— |
(0.02) |
|||||||||||
Basic earnings per common share |
$ |
1.19 |
$ |
0.86 |
$ |
3.47 |
$ |
1.93 |
|||||||
Diluted: |
|||||||||||||||
Continuing operations |
$ |
1.16 |
$ |
0.84 |
$ |
3.39 |
$ |
1.90 |
|||||||
Discontinued operations |
— |
— |
— |
(0.02) |
|||||||||||
Diluted earnings per common share |
$ |
1.16 |
$ |
0.84 |
$ |
3.39 |
$ |
1.88 |
CENTENE CORPORATION AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
Nine Months Ended |
|||||||
2017 |
2016 |
||||||
Cash flows from operating activities: |
|||||||
Net earnings |
$ |
585 |
$ |
302 |
|||
Adjustments to reconcile net earnings to net cash provided by operating activities |
|||||||
Depreciation and amortization |
264 |
189 |
|||||
Stock compensation expense |
99 |
112 |
|||||
Deferred income taxes |
(32) |
(17) |
|||||
Changes in assets and liabilities |
|||||||
Premium and related receivables |
(749) |
(906) |
|||||
Other assets |
(39) |
7 |
|||||
Medical claims liabilities |
406 |
15 |
|||||
Unearned revenue |
255 |
301 |
|||||
Accounts payable and accrued expenses |
205 |
99 |
|||||
Other long-term liabilities |
45 |
156 |
|||||
Other operating activities, net |
— |
1 |
|||||
Net cash provided by operating activities |
1,039 |
259 |
|||||
Cash flows from investing activities: |
|||||||
Capital expenditures |
(301) |
(211) |
|||||
Purchases of investments |
(1,720) |
(1,528) |
|||||
Sales and maturities of investments |
1,335 |
955 |
|||||
Investments in acquisitions, net of cash acquired |
— |
(848) |
|||||
Net cash used in investing activities |
(686) |
(1,632) |
|||||
Cash flows from financing activities: |
|||||||
Proceeds from long-term debt |
1,170 |
6,956 |
|||||
Payments of long-term debt |
(1,124) |
(4,257) |
|||||
Common stock repurchases |
(18) |
(29) |
|||||
Purchase of noncontrolling interest |
(33) |
(14) |
|||||
Debt issuance costs |
— |
(59) |
|||||
Other financing activities, net |
2 |
(3) |
|||||
Net cash (used in) provided by financing activities |
(3) |
2,594 |
|||||
Effect of exchange rate changes on cash and cash equivalents |
1 |
1 |
|||||
Net increase in cash and cash equivalents |
351 |
1,222 |
|||||
Cash and cash equivalents, beginning of period |
3,930 |
1,760 |
|||||
Cash and cash equivalents, end of period |
$ |
4,281 |
$ |
2,982 |
|||
Supplemental disclosures of cash flow information: |
|||||||
Interest paid |
$ |
210 |
$ |
113 |
|||
Income taxes paid |
$ |
358 |
$ |
394 |
|||
Equity issued in connection with acquisitions |
$ |
— |
$ |
3,105 |
|
|||||||||||||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA FROM CONTINUING OPERATIONS |
|||||||||||||||||||||||||||||||||||
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
|||||||||||||||||||||||||||||||
2017 |
2017 |
2017 |
2016 |
2016 |
|||||||||||||||||||||||||||||||
MANAGED CARE MEMBERSHIP BY STATE |
|||||||||||||||||||||||||||||||||||
|
659,500 |
669,500 |
684,300 |
598,300 |
601,500 |
||||||||||||||||||||||||||||||
|
89,900 |
91,900 |
98,100 |
58,600 |
57,700 |
||||||||||||||||||||||||||||||
|
2,928,600 |
2,925,800 |
2,980,100 |
2,973,500 |
3,004,500 |
||||||||||||||||||||||||||||||
|
852,600 |
871,100 |
872,000 |
716,100 |
732,700 |
||||||||||||||||||||||||||||||
|
476,400 |
540,400 |
568,300 |
488,000 |
498,000 |
||||||||||||||||||||||||||||||
|
251,000 |
254,600 |
253,800 |
237,700 |
236,700 |
||||||||||||||||||||||||||||||
|
322,900 |
340,000 |
335,800 |
285,800 |
289,600 |
||||||||||||||||||||||||||||||
|
127,300 |
130,000 |
133,100 |
139,700 |
145,100 |
||||||||||||||||||||||||||||||
|
483,300 |
484,600 |
484,100 |
472,800 |
455,600 |
||||||||||||||||||||||||||||||
|
48,300 |
54,100 |
44,200 |
48,300 |
45,300 |
||||||||||||||||||||||||||||||
|
2,400 |
2,300 |
2,100 |
2,000 |
2,100 |
||||||||||||||||||||||||||||||
|
9,500 |
9,500 |
9,500 |
9,400 |
9,400 |
||||||||||||||||||||||||||||||
|
335,600 |
343,600 |
349,500 |
310,200 |
313,900 |
||||||||||||||||||||||||||||||
|
272,100 |
278,300 |
106,100 |
105,700 |
104,700 |
||||||||||||||||||||||||||||||
|
79,200 |
78,800 |
79,200 |
— |
— |
||||||||||||||||||||||||||||||
|
16,800 |
— |
— |
— |
— |
||||||||||||||||||||||||||||||
|
76,400 |
77,100 |
77,800 |
77,400 |
78,400 |
||||||||||||||||||||||||||||||
|
7,100 |
7,100 |
7,100 |
7,100 |
7,100 |
||||||||||||||||||||||||||||||
|
336,500 |
332,700 |
328,900 |
316,000 |
319,500 |
||||||||||||||||||||||||||||||
|
209,700 |
213,600 |
211,900 |
217,800 |
218,400 |
||||||||||||||||||||||||||||||
|
118,600 |
121,000 |
121,900 |
122,500 |
119,700 |
||||||||||||||||||||||||||||||
|
22,100 |
22,200 |
21,900 |
21,700 |
21,600 |
||||||||||||||||||||||||||||||
|
1,236,700 |
1,226,800 |
1,243,900 |
1,072,400 |
1,041,600 |
||||||||||||||||||||||||||||||
|
1,600 |
1,600 |
1,600 |
1,600 |
1,700 |
||||||||||||||||||||||||||||||
|
239,600 |
248,500 |
254,400 |
238,400 |
240,500 |
||||||||||||||||||||||||||||||
|
70,200 |
70,800 |
71,700 |
73,800 |
75,100 |
||||||||||||||||||||||||||||||
Total at-risk membership |
9,273,900 |
9,395,900 |
9,341,300 |
8,594,800 |
8,620,400 |
||||||||||||||||||||||||||||||
TRICARE eligibles |
2,823,200 |
2,823,200 |
2,804,100 |
2,847,000 |
2,815,700 |
||||||||||||||||||||||||||||||
Non-risk membership |
213,900 |
— |
— |
— |
— |
||||||||||||||||||||||||||||||
Total |
12,311,000 |
12,219,100 |
12,145,400 |
11,441,800 |
11,436,100 |
||||||||||||||||||||||||||||||
Medicaid: |
|||||||||||||||||||||||||||||||||||
TANF, CHIP & |
5,809,400 |
5,854,400 |
5,714,100 |
5,630,000 |
5,583,900 |
||||||||||||||||||||||||||||||
ABD & LTC |
850,300 |
843,500 |
825,600 |
785,400 |
754,900 |
||||||||||||||||||||||||||||||
|
467,400 |
466,500 |
466,900 |
466,600 |
465,300 |
||||||||||||||||||||||||||||||
Commercial |
1,657,800 |
1,743,600 |
1,864,700 |
1,239,100 |
1,333,000 |
||||||||||||||||||||||||||||||
Medicare & Duals (1) |
331,000 |
327,500 |
328,100 |
334,300 |
333,500 |
||||||||||||||||||||||||||||||
Correctional |
158,000 |
160,400 |
141,900 |
139,400 |
149,800 |
||||||||||||||||||||||||||||||
Total at-risk membership |
9,273,900 |
9,395,900 |
9,341,300 |
8,594,800 |
8,620,400 |
||||||||||||||||||||||||||||||
TRICARE eligibles |
2,823,200 |
2,823,200 |
2,804,100 |
2,847,000 |
2,815,700 |
||||||||||||||||||||||||||||||
Non-risk membership |
213,900 |
— |
— |
— |
— |
||||||||||||||||||||||||||||||
Total |
12,311,000 |
12,219,100 |
12,145,400 |
11,441,800 |
11,436,100 |
||||||||||||||||||||||||||||||
(1) Membership includes Medicare Advantage, Medicare Supplement, Special Needs Plans, and Medicare-Medicaid Plans. |
|||||||||||||||||||||||||||||||||||
NUMBER OF EMPLOYEES |
32,400 |
31,500 |
30,900 |
30,500 |
29,400 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
|||||||||||||||
2017 |
2017 |
2017 |
2016 |
2016 |
|||||||||||||||
DAYS IN CLAIMS PAYABLE (a) |
42 |
40 |
41 |
42 |
41 |
||||||||||||||
(a) Days in claims payable is a calculation of medical claims liabilities at the end of the period divided by average claims expense per calendar day for such period. |
|||||||||||||||||||
CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) |
|||||||||||||||||||
Regulated |
$ |
9,633 |
$ |
9,673 |
$ |
10,034 |
$ |
8,854 |
$ |
7,825 |
|||||||||
Unregulated |
308 |
291 |
306 |
264 |
268 |
||||||||||||||
Total |
$ |
9,941 |
$ |
9,964 |
$ |
10,340 |
$ |
9,118 |
$ |
8,093 |
|||||||||
DEBT TO CAPITALIZATION |
41.5 |
% |
42.5 |
% |
43.3 |
% |
44.1 |
% |
44.5 |
% |
|||||||||
DEBT TO CAPITALIZATION EXCLUDING NON-RECOURSE DEBT (b) |
41.2 |
% |
42.1 |
% |
43.0 |
% |
43.7 |
% |
44.1 |
% |
|||||||||
(b) The non-recourse debt represents the Company's mortgage note payable ( |
|||||||||||||||||||
Debt to capitalization is calculated as follows: total debt divided by (total debt + total equity). |
OPERATING RATIOS
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||||||||
HBR |
88.0 |
% |
87.0 |
% |
87.3 |
% |
87.2 |
% |
|||||||||||||
SG&A expense ratio |
9.0 |
% |
9.2 |
% |
9.4 |
% |
9.7 |
% |
|||||||||||||
Adjusted SG&A expense ratio |
8.9 |
% |
9.1 |
% |
9.2 |
% |
8.9 |
% |
MEDICAL CLAIMS LIABILITY
The changes in medical claims liability are summarized as follows (in millions):
Balance, |
$ |
3,767 |
|||
Incurred related to: |
|||||
Current period |
37,321 |
||||
Prior period |
(479 |
||||
Total incurred |
36,842 |
||||
Paid related to: |
|||||
Current period |
33,250 |
||||
Prior period |
3,043 |
||||
Total paid |
36,293 |
||||
Balance, |
4,316 |
||||
Plus: Reinsurance recoverable |
17 |
||||
Balance, |
$ |
4,333 |
The amount of the "Incurred related to: Prior period" above represents favorable development and includes the effects of reserving under moderately adverse conditions, new markets where we use a conservative approach in setting reserves during the initial periods of operations, receipts from other third party payors related to coordination of benefits and lower medical utilization and cost trends for dates of service
View original content:http://www.prnewswire.com/news-releases/centene-corporation-reports-2017-third-quarter-results--updates-2017-guidance-300541657.html
SOURCE
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