Centene revenues up 19% following Fidelis purchase

earnings
Medicaid plans are still the company's primary money-maker, accounting for $8.9 billion in revenue over the second quarter. (Pixabay)

Centene has added $14.2 billion in revenue in the second quarter of 2018 thanks in large part to growth in the Affordable Care Act marketplace.

Medicaid plans are still the company's primary money-maker, accounting for $8.9 billion in revenue over the second quarter, an 11% increase from the same period last year. But Centene's commercial plans saw a 48% spike with $3.1 billion in revenues. 

Overall the company reported a 19% year-over-year increase in revenues, bringing the first-half total to $27.3 billion.

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Net earnings reached $300 million in the second quarter, up from $254 million in the second quarter last year. That drove $1.80 earnings per share, up from $1.59 last year.

Centene attributed the revenue increase to growth in the health insurance marketplace, new acquisitions and the reinstatement of the health insurer fee. Membership among marketplace enrollees grew 418,500 compared to the same quarter last year.

RELATED: Centene slapped with lawsuit over provider networks in ACA exchange plans

Centene closed it's $3.75 billion acquisition of Fidelis Care last month, which added a substantial new presence on the New York exchange. According to a report released by NY State of Health, Fidelis Care had the largest share of statewide enrollment in 2018 at 41%. The insurer operates in all but six counties in the state. 

"Centene's strong fundamentals will be enhanced by the strategic and financial benefits of our recently closed Fidelis Care acquisition," Centene CEO Michael F. Neidorff said in a statement.

Operating cash flow was down $526 million in the second quarter thanks primarily to a $630 million repayment to California due to Medicaid expansion rate overpayments. 

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