Centene's individual marketplace business has grown 75% year over year, adding 1.6 million members since the third quarter of 2022, according to the company's third quarter earnings report published Oct. 24.
On an investor call, Centene CFO Drew Asher said the company's marketplace business is bringing in more revenue than its Medicare Advantage business.
Centene CEO Sarah London said the market growth was driven by market-leading brand recognition and consistent performance.
Though the company's individual membership is rapidly growing, these members are not driving up medical costs, Ms. London told investors.
"In general, when we see this level of market growth it drives a healthier overall risk pool, and we're seeing some of that in the performance. But I think the bigger piece is probably just execution from the team, really solid pricing discipline coming into the year as we've been on a margin progression with this product, execution on clinical initiatives, really thoughtful risk adjustment calculations," Ms. London said.
The company is expecting to gain between 200,000 and 300,000 members in its individual business that have been disenrolled from Medicaid, Ms. London said.
ACA exchange enrollment hit record levels in 2023, spurred by increased subsidies that cover the cost of premiums for most people with incomes less than 400% of the federal poverty level.
Centene reported a 36% decline in net revenue year over year in its third-quarter earnings.