Centene Corporation reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $163.1 billion, a 6% increase from $154.0 billion in 2023. The company's net earnings attributable to Centene rose by 22% to $3.3 billion, or $6.31 per diluted share, compared to $2.7 billion, or $4.95 per diluted share, in the previous year. This growth was driven by an increase in membership across its segments, particularly in the Commercial and Medicare divisions, despite challenges in the Medicaid segment due to eligibility redeterminations.
The company experienced notable changes in its operational metrics, with total membership increasing to 28.6 million, up from 27.5 million in 2023. The Medicaid segment accounted for approximately 62% of total revenues, while Medicare and Commercial segments contributed 14% and 21%, respectively. Centene's Medicare Advantage membership saw a decline of 13% year-over-year, attributed to lower Star ratings impacting revenue, while its Medicare Prescription Drug Plan (PDP) membership surged by 50%, reflecting strong bid positioning.
Strategically, Centene has been active in divesting non-core assets, completing several significant transactions in 2023 and 2024, including the sale of its majority stake in Apixio and the divestiture of Circle Health Group. These divestitures have allowed the company to streamline operations and focus on its core Medicaid, Medicare, and Commercial segments. Additionally, Centene has expanded its Health Insurance Marketplace product, Ambetter Health, into new states, contributing to a 12% increase in Marketplace membership.
Operationally, Centene's health benefits ratio (HBR) increased to 88.3% in 2024 from 87.7% in 2023, primarily due to higher acuity in Medicaid following the redetermination process. The selling, general, and administrative (SG&A) expense ratio improved to 8.5%, down from 9.0% in the prior year, reflecting better expense management amid revenue growth. The company maintained a workforce of approximately 60,500 employees as of December 31, 2024, supporting its operations across various states.
Looking ahead, Centene anticipates continued growth driven by its strategic initiatives and market positioning. The company expects to receive approximately $1.9 billion in net dividends from its regulated subsidiaries in 2025 and plans to invest around $700 million in capital expenditures, primarily for system enhancements. Centene remains focused on navigating regulatory changes and optimizing its service offerings to enhance member and provider experiences while maintaining financial stability.
About CENTENE CORP
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