Centene reported a third-quarter profit of $713 million as Obamacare enrollment and premium income helped offset a big drop in Medicaid enrollment.

Centene, which sells a range of government-subsidized health insurance, including Medicaid coverage for poor Americans and individual commercial insurance under the Affordable Care Act, known as Obamacare, reported net income of $713 million, or $1.36 per share for the quarter ended September 30. , compared to $469 million, or 87 cents per share, in the third quarter of 2023.

Centene said total managed care membership grew total managed care membership grew to 28.64 million, compared to 27.96 million at the end of the third quarter of 2023, due largely to enrollment to Obamacare.

Centene’s enrollment in individual coverage under the Affordable Care Act, also known as Obamacare, grew what Centene calls its “commercial market” business by 22 percent to 4.5 million members, from nearly 3.7 million with a year ago. This increase of more than one million health plan members helped overcome a drop of more than 2 million in enrollment in Medicaid Centene plans for poor Americans.

“Our diversified portfolio allowed us to successfully navigate a dynamic landscape this quarter,” Centene Chief Executive Officer Sarah M. London said in a statement accompanying the earnings. “At the same time, we have met fundamentals that have positive implications for Centene. multi-year earnings trajectory, including notable RFP gains, Medicare Stars enhancements and ongoing operational efficiencies. We remain confident in our full-year outlook for adjusted diluted EPS in excess of $6.80 and are well positioned to capture the strong long-term growth opportunities we have. see in government-sponsored health care.”

Centene’s confidence and earnings, which beat analysts’ expectations, come despite a drop of more than 2 million to 13 million Medicaid enrollees in the quarter, compared with 15.2 million last year. That triggered a 1 percent drop in premium and service income to $21.3 billion.

Deteriorating Medicaid enrollment is an industry-wide problem due in large part to the end of the US public health emergency declared for the COVID-19 pandemic.

The US public health emergency has kept a record number of people covered by not kicking anyone off Medicaid, while Congress and the Biden administration have increased and expanded subsidies so more Americans to afford individual Obamacare coverage under the Affordable Care Act. This has helped Centene maintain its growth in total health insurance enrollments.

The increase in the commercial market, or Obamacare, helped “revenues from premiums and services” increase 6% to $36.89 billion from $34.96 billion in the second quarter of 2023.

Enrollment is changing nationwide in light of the end in May 2023 of the U.S. public health emergency that increased the number of Americans covered when the Medicaid redetermination temporarily ended three years ago. Medicaid redetermination, also described as Medicaid renewal or Medicaid recertification, is essentially when people are asked to prove that they qualify for such coverage.