Centene Says It’s ‘Business As Usual’

Feb. 07--Centene Corp. CEO Michael Neidorff is assuring investors his company can "navigate" any potential federal policy changes to the health care industry.

On Tuesday's quarterly earnings call, Neidorff said Centene has "three decades of experience spanning five presidents from both sides of the aisle."

Despite the uncertainties in Washington, he said the company is taking a "business as usual approach."

Neidorff is referring to the questions that still linger about the future of the Affordable Care Act, a law that has greatly benefited the Clayton-based managed-care and health insurance company. The law known as Obamacare has allowed the company to enter into expanded contracts with states to provide health services to more Medicaid recipients, and it has created new markets, allowing Centene to sell plans directly to consumers. Marketplace plans have proven profitable for Centene, unlike some of its competitors.

Republicans, who had previously vowed to repeal and replace the Affordable Care Act, are now taking a softer approach aimed at fixing, not repealing, the legislation.

"We have an experienced team on hand and are confident our scale, systems and expertise will allow us to be ready as the new health care agenda unfolds," Neidorff said.

Neidorff did hint at the options he prefers, if in fact there are going to be changes.

Republicans have floated the idea of switching Medicaid funding to a block grant system, in which states would receive a lump sum instead of receiving a percentage match based on the dollars a state spends on its Medicaid members. There has also been talk of per capita caps, which would be set by limiting the amount of federal spending per enrollee.

"We believe we can work on any basis, whether it is block grants or per capita caps. I will note that per capita caps is a fairer approach for states that have a growing Medicaid population," Neidorff said.

He said he believes policy changes will be made to allow states more flexibility when it comes to managing the Medicaid program, something he said "aligns nicely with Centene's local approach to health care."

Any change could be significant to the company, which manages the health benefits for the largest number of Medicaid recipients in the country.

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