Centene’s Arizona subsidiary secured a Medicaid contract, empowering it to serve Arizona’s elderly and disabled through ALTCS. This move reinforces Centene’s position as a leading Medicaid provider and signals potential membership growth. Alongside Medicaid, Centene operates diverse healthcare programs, collaborating to innovate and expand coverage. Strong performance and partnerships position Centene for growth, while other top medical stocks, like IRadimed, Amphastar Pharmaceuticals, and Novo Nordisk, also show promising prospects in the industry.
Centene (CNC) Secures Medicaid Contract in Arizona, Enhancing Health Coverage for Elderly and Disabled Population
Centene Corporation (CNC) recently announced a significant development, as its Arizona subsidiary, Arizona Complete Health, secured a managed care contract from Arizona’s Medicaid agency, the Arizona Health Care Cost Containment System (AHCCCS). The new contract is set to take effect from October 2024 and is slated to run for a duration of three years, with the possibility of extensions up to four times, each for one year.
This contract empowers Centene’s Arizona unit, recognized as the largest Medicaid health plan in the state, to meet the healthcare needs of members enrolled in the Arizona Long Term Care System (ALTCS). ALTCS, a longstanding Medicaid-managed program in the United States, focuses on providing comprehensive healthcare services and support for the elderly and physically disabled population in Arizona.
ALTCS, serving approximately 26,000 individuals, offers a range of physical, behavioral, and long-term healthcare services, including pharmacy benefits. The program emphasizes promoting independent living by delivering home and community-based services.
With nearly two decades of experience serving AHCCCS members, Centene is well-positioned to continue its collaborative efforts with healthcare providers in Arizona. This strategic move is expected to enhance the health outcomes for ALTCS members while addressing diverse healthcare needs across the state.
Centene’s robust Medicaid business, established through provider partnerships and substantial investments, gives the health insurer a competitive advantage. Contract wins, such as the recent one in Arizona, are anticipated to further solidify Centene’s presence in the state and contribute to the growth of its Medicaid membership. Notably, Medicaid members constitute a significant portion of Centene’s overall membership and play a crucial role in driving premiums, the primary revenue source for health insurers.
In addition to its growing Medicaid business, Centene serves Arizona through individual, Medicare, and dual-eligible programs. The health insurer offers Medicare Advantage plans under the Wellcare brand and distributes Marketplace plans through Ambetter Health insurance, extending its reach across diverse U.S. communities.
Recent collaborations, such as Ambetter Health partnering with the health benefits platform Take Command, exemplify Centene’s commitment to innovation. The collaboration resulted in the development of an Individual Coverage Health Reimbursement Arrangements product, aimed at providing Indiana’s employers with diverse healthcare options for their employees. This product, featuring affordability, flexibility, and tax credits, is set to launch in 2024, empowering employers to reimburse health insurance plan payments made by employees, thereby managing healthcare costs more effectively.
Shares of Centene have demonstrated strong performance, rising by 11.2% in the past six months, outpacing the industry’s growth of 8.2%. With a Zacks Rank #2 (Buy), Centene is well-positioned for future growth. Other top-ranked stocks in the medical space include IRadimed Corporation (IRMD), Amphastar Pharmaceuticals, Inc. (AMPH), and Novo Nordisk A/S (NVO), each currently holding a Zacks Rank #1 (Strong Buy).
IRadimed has consistently surpassed earnings expectations in the last four quarters, with an average beat of 11.67%. Projections for IRadimed’s 2023 earnings and revenues indicate significant improvements, with estimates suggesting a 36.4% increase in earnings and a 22.5% increase in revenues compared to the previous year.
Amphastar Pharmaceuticals has also exceeded earnings expectations in the past four quarters, with an average surprise of 52.06%. Forecasts for AMPH’s 2023 earnings and revenues point towards substantial improvements, with estimates indicating a 62.4% increase in earnings and a 28.4% increase in revenues compared to the prior year.
Novo Nordisk, while surpassing earnings expectations in two of the last four quarters, projects a 51.5% increase in 2023 earnings and a 31.5% increase in revenues compared to the previous year.
Investors seeking potential opportunities in the medical sector may find these top-ranked stocks appealing. For more detailed insights and recommendations, you can download the latest report, “7 Best Stocks for the Next 30 Days,” from Zacks Investment Research.