Fulkerson will join the Jacksonville hospital’s executive team on August 3, 2026.

July 27, 2026  — HCA Florida Memorial Hospital is pleased to announce the appointment of Jordan Fulkerson, CPA, as its new Chief Financial Officer (CFO). Fulkerson will officially assume the role beginning on Monday, August 3, 2026.

Fulkerson brings more than 14 years of progressive healthcare finance experience, including more than seven years with HCA Healthcare. He most recently served as Chief Financial Officer at HCA Florida Citrus Hospital, a role he has held since December 2023.

Before joining Citrus Hospital, Fulkerson served as Chief Financial Officer at HCA Florida St. Petersburg Hospital. He also held Assistant Chief Financial Officer positions at HCA Florida Largo Hospital and HCA Florida Englewood Hospital.

Throughout his career, Fulkerson has provided financial leadership across community hospitals, statutory teaching hospitals, critical access facilities, and multi-campus health systems. His experience includes financial strategy, hospital operations, physician alignment, capital planning, revenue cycle optimization, and service line development. Known for his collaborative leadership style, he builds strong partnerships with physicians, executive leaders, and clinical teams to enhance financial performance, support operational excellence, and drive strategic growth. He is also a graduate of HCA Healthcare’s Executive Development Program.

“Jordan is a strategic, forward-thinking leader with a proven track record of advancing financial performance while supporting innovation and sustainable growth,” said Reed Hammond, chief executive officer of HCA Florida Memorial Hospital. “His broad experience leading complex healthcare organizations, coupled with his collaborative approach and commitment to delivering exceptional patient care, makes him an outstanding addition to our executive team. We are excited to welcome Jordan to HCA Florida Memorial Hospital and look forward to the leadership and expertise he will bring as we continue expanding access to high-quality, compassionate care for the Jacksonville community.”

Fulkerson earned a Bachelor of Science in Accounting and Finance from Illinois State University and is a Certified Public Accountant (CPA).

Outside of work, Fulkerson enjoys spending time outdoors with his wife and their two young children. The family also enjoys traveling to visit relatives across the country.



Capital Hospital is helping grow the region’s healthcare workforce as 36 new resident physicians begin the next phase of their medical training.

July 28, 2026 –  HCA Florida Capital Hospital is helping grow the region’s healthcare workforce as 36 new resident physicians begin the next phase of their medical training this month in Tallahassee.

“I’m so pleased to be doing my residency in dermatology through the Graduate Medical Education Program at HCA Florida Capital Hospital,” said Anthony Thompson, MD. “I have chosen to specialize in dermatology because it offers the opportunity for continuity of care and life-changing results. There are so many emerging therapies, and I look forward to using them for a population that needs them here in the Big Bend Region so they can live healthier lives.”

Most of HCA Florida Capital Hospital’s incoming physicians are relocating to the area where they will live, work and become part of the community they serve. Graduate medical education programs play an important role in addressing Florida’s growing physician shortage, as more than 50% of residents and fellows, on average, choose to establish their practices in the communities where they complete their training.

“Welcoming new resident physicians is one of the most exciting times of the year because they represent all the possibilities of the future of healthcare,” said Chief Medical Officer at HCA Florida Capital Hospital, Jack Atwater, MD. “These doctors bring exceptional talent, curiosity and a commitment to improving lives. We are honored to help shape the next generation of physicians while providing expert care for our community.”

With the new doctors joining the program this month, there are now 57 resident physicians undergoing additional rigorous training at HCA Florida Capital Hospital. They are specializing in the high-demand fields of dermatology, internal medicine, psychiatry and a transitional year program, which provides recent medical school graduates with a year of comprehensive clinical skills training before they go on to more specialized training.

Resident physicians care for patients under the guidance of experienced physician faculty while gaining hands-on experience with advanced technologies, evidence-based medicine and multidisciplinary care teams. Their training helps ensure patients receive high-quality, compassionate care while preparing physicians to practice in their chosen specialties.

“HCA Florida Healthcare is committed to developing tomorrow’s physician leaders,” said HCA Healthcare North Florida Division Vice President of Graduate Medical Education Cheryll Albold, Ph.D. “By investing in graduate medical education, we’re not only training exceptional physicians, we are strengthening the future of healthcare across North Florida.”

HCA Florida Healthcare’s graduate medical education programs train more new doctors than any other program in the state. With 153 GME programs across 29 teaching hospitals, HCA Florida Healthcare’s 2,580 residents and fellows are the next generation of doctors local communities will depend on for care. For more information about healthcare services near you, visit hcafloridahealthcare.com.



JULY 28, 2026 –  In effort to continue prioritizing the expansion of access to world-class pediatric care throughout the region, Nicklaus Children’s Health System has announced two executive leadership appointments designed to strengthen clinical and operational alignment across its expanding pediatric health care network.

The appointments come as Nicklaus Children’s continues to expand from a single-hospital institution to a regional health system serving children and families through a growing network of hospitals, specialty centers, ambulatory locations, urgent care centers and community-based partnerships across South Florida.

Yair Katz has been appointed senior vice president and chief operating officer of Nicklaus Children’s Health System, the parent organization of Nicklaus Children’s Hospital and its outpatient facilities. Dr. Marcos Mestre has been appointed senior vice president, chief physician executive and chief clinical officer.

Katz will oversee operational leadership across the health system, including its three hospitals, clinical institutes, ambulatory network, urgent care centers, and market operations. He will be responsible for advancing operational excellence, strengthening integration across the organization’s growing network, and ensuring a consistent, high-quality experience for patients and families.

His responsibilities include oversight of regional operations, operational leadership of Nicklaus Children’s Pediatric Specialists, institute administrative leadership, and other operational leaders throughout the health system.

In his new role, Dr. Mestre will lead the health system’s clinical enterprise and oversee efforts to advance its academic mission in partnership with FIU Herbert Wertheim College of Medicine, strengthen physician alignment, improve quality and clinical outcomes, while also supporting the continued growth of its pediatric clinical institutes.

Dr. Mestre will oversee physician leadership across the organization, including the chief medical officer of Nicklaus Children’s hospitals, chief medical officer of Nicklaus Children’s Pediatric Specialists, chief quality officer and physician leaders.

“These leadership appointments reflect the continued evolution of Nicklaus Children’s as a regional pediatric leader,” said Matthew A. Love, president and CEO of Nicklaus Children’s Health System. “As we expand our mission to bring specialized pediatric care closer to more families in the region, it is essential that we strengthen alignment across our clinical, operational and administrative teams. Dr. Mestre and Yair are exceptional leaders whose expertise and commitment to our mission will help ensure we continue delivering the highest-quality care while supporting future expansion of our life-saving work.”

The leadership changes are intended to enhance coordination across the growing health system, support continued growth and expand access to pediatric specialty care throughout the communities Nicklaus Children’s serves.

About Nicklaus Children’s Health System – Where Your Child Matters Most ™

For more than 75 years, Nicklaus Children’s Health System has stood as a beacon of hope for children and families across the state of Florida and beyond. Nicklaus Children’s Hospital is South Florida’s #1 nonprofit, freestanding specialty licensed hospital exclusively for children. Nicklaus Children’s provides pediatric care across a growing network of hospital and community-based partnerships, including within NCH North Hospital in Naples, Jupiter Medical Center, select Baptist Health Hospital pediatric emergency units, as well as at Nicklaus Children’s Hospital Fort Lauderdale and Nicklaus Children’s Hospital Coral Springs, each located on the campuses of Broward Health. The hospitals and their network of more than 35 outpatient locations offer lifesaving care in Miami-Dade, Broward, Martin and Palm Beach counties. Outpatient locations include an array of urgent, pediatric primary and specialty care centers and are either hospital-based or outpatient locations under Nicklaus Children’s Pediatric Specialists, LLC (NCPS). Providing a pipeline of future physicians and groundbreaking research, Nicklaus Children’s is an academic and clinical affiliate of the Florida International University Herbert Wertheim College of Medicine and home to centers of excellence including the Helen & Jacob Shaham Cancer & Blood Disorders Institute, the Orthopedic, Sports Medicine and Spine Institute, the Neuroscience Institute and the Heart Institute. The 474-bed system is renowned for excellence in all aspects of pediatric medicine, with many programs routinely ranked among the nation’s best by U.S. News & World Report since 2008. Nicklaus Children’s also includes a nonprofit physician practice subsidiary with more than 40 pediatric specialties and an ambulatory surgery center. For more information, visit nicklauschildrens.org.

 



50 high-risk providers identified through coordinated federal, state enforcement actions

July 28, 2026 – The Centers for Medicare & Medicaid Services (CMS) announced that enforcement efforts from its Medicaid Fraud War Room (MFWR) stopped more than $203 million in potentially improper Medicaid payments in just under 90 days, highlighting significant progress in protecting taxpayer dollars and strengthening Medicaid program integrity. Since its launch on April 23, the MFWR has coordinated actions against 50 unique, high-risk Medicaid providers identified through advanced data analytics and representing more than $203 million in Medicaid payments subject to federal exclusions and state enforcement efforts.

“Every dollar lost to Medicaid fraud is a dollar taken away from vulnerable Americans who rely on it,” said CMS Administrator Dr. Mehmet Oz. “In just under 90 days, the Medicaid Fraud War Room has proved that these losses aren’t inevitable and has shown Americans what we can accomplish with robust federal-state partnerships, advanced data analytics, and a real sense of urgency. We’ve made significant progress toward crushing waste, fraud, and abuse, but we’re not done yet. If you steal from Medicaid, we will track you down, cut you off, and work to ensure that every taxpayer dollar we spend funds quality care for eligible beneficiaries.”

To date, MFWR activities have resulted in:

  • Forty-two Federal Notices of Intent to Exclude providers from federal healthcare programs were issued by the U.S. Department of Health and Human Services Office of Inspector General (OIG), representing approximately $160.7 million in Medicaid payments since January 1, 2025.
  • Fifteen state enforcement actions were taken against providers based on MFWR referrals, representing approximately $46.2 million in Medicaid payments since January 1, 2025.
  • Seven of these providers were subject to both federal and state action, meaning that 50 unique providers have been identified, representing approximately $203.3 million in Medicaid payments since January 1, 2025.

“The Medicaid Fraud War Room is what modern program integrity looks like: federal and state partners working off the same data, in real time, to stop bad actors before more taxpayer dollars go out the door,” said CMS Deputy Administrator and Chief Operating Officer Kim Brandt. “Fifty providers and $203 million in just 88 days is not a coincidence — it’s the result of tighter coordination, better analytics, and a workforce that treats fraud prevention as core mission work, not an afterthought.”

The MFWR was established in coordination with the White House Task Force to Eliminate Fraud and brings together CMS, OIG, state Medicaid agencies, and federal law enforcement partners to identify and rapidly address high-risk providers.

Building on the success of CMS’s Medicare Fraud Defense Operations Center, the MFWR uses advanced analytics to identify suspicious billing patterns, generate investigative leads, and coordinate rapid enforcement actions across federal and state partners.

For more information, visit: www.cms.gov/files/document/medicaid-fraud-war-room-fast-facts.pdf.



FROM: CENTENE CORPORATION REPORTS SECOND QUARTER 2026 RESULTS – Jul 28, 2026

  • Second Quarter GAAP Diluted Earnings Per Share of $2.19; Adjusted Diluted Earnings Per Share of $2.51 —
    — Increases 2026 GAAP Diluted EPS Guidance: Greater than $3.11 & Adjusted Diluted EPS Greater than $4.80 —
  • Commercial HBR of 79.2%, demonstrating significant year-over-year improvement in profitability.
  • Medicare segment HBR of 89.5%, including fundamental outperformance in both Medicare Advantage and PDP.
  • Medicaid HBR of 93.9%, in-line with expectations and reflecting continued execution in management of medical cost trend.
  • Guidance increase resulting from underlying strength of the business, including approximately $0.50 of non-recurring items in Medicare and Commercial segments.

ST. LOUIS, July 28, 2026 — Centene Corporation (NYSE: CNC) (the Company) announced today its financial results for the second quarter ended June 30, 2026. In summary, the 2026 second quarter results were as follows:

“Our second quarter results and improved full-year outlook represent meaningful milestones on our path to restoring profitability and increasing shareholder value,” said Chief Executive Officer of Centene, Sarah M. London. “We are excited by the positive momentum we have built and remain focused on our goal of delivering industry-leading health outcomes with an industry-leading cost structure.”

Membership

The following table sets forth membership by line of business:

Premium and Service Revenues

The following table sets forth supplemental revenue information ($ in millions):

Statement of Operations: Three Months Ended June 30, 2026

  • For the second quarter of 2026, premium and service revenues increased 4% to $44.4 billion from $42.5 billion in the comparable period of 2025. The increase was primarily driven by premium yield and membership growth in the PDP business, rate increases in Marketplace and in the Medicaid business to address medical trend, Marketplace risk adjustment revenue transfer for the 2025 and 2026 benefit years, and state directed payments. The increases were partially offset by lower Marketplace and Medicaid membership.
  • Health benefits ratio (HBR) of 89.6% for the second quarter of 2026 represents a decrease from 93.0% in the comparable period in 2025. The consolidated HBR benefited from a lower Marketplace HBR resulting from improved pricing and risk transfer reflecting the acuity of the Marketplace membership. The HBR also decreased due to rate and revenue increases and continued tangible progress in managing medical costs in the Medicaid business. The HBR benefited by the favorable resolution of programmatic elements for the 2025 benefit year in Medicare and was also driven by an increase to the premium deficiency reserve (PDR) in 2025 versus no PDR in 2026 for our Medicare Advantage business as a result of our progression towards profitability.
  • The SG&A expense ratio was 7.0% for the second quarter of 2026, compared to 7.1% in the second quarter of 2025. The adjusted SG&A expense ratio was 6.9% for the second quarter of 2026, compared to 7.1% in the second quarter of 2025. The decreases were primarily driven by strong cost management, leveraging of expenses over higher revenues and reduced Marketplace membership, which operates at a meaningfully higher SG&A expense ratio, as well as overall discipline in Marketplace SG&A. The decreases were also driven by growth in the PDP business, which operates at a meaningfully lower SG&A expense ratio as compared to the overall company.
  • The effective tax rate was 26.9% for the second quarter of 2026. For the second quarter of 2026, our effective tax rate on adjusted earnings was 26.5%.
  • GAAP diluted EPS of $2.19 for the second quarter of 2026.
  • Adjusted diluted EPS of $2.51 for the second quarter of 2026.
  • Cash flow provided by operations for the second quarter of 2026 was $3.6 billion, primarily driven by net earnings and the timing of pass through, premium and other payments, partially offset by net improvement in 2025 risk adjustment transfer position.

Balance Sheet

At June 30, 2026, the Company had cash, investments and restricted deposits of $44.8 billion and maintained $715 million of cash available for general corporate use. Medical claims liabilities totaled $20.3 billion. The Company’s days in claims payable (DCP) was 47 days, a decrease of one day as compared to the first quarter of 2026 driven by timing of state directed payments.

During the second quarter of 2026, the Company repurchased $260 million of the Company’s par value senior notes due 2027 and 2028. Following the senior note repurchase, total debt was $16.1 billion, which included no borrowings on the $4.0 billion Revolving Credit Facility at quarter end.

Outlook

Please refer to the Forward-Looking Statements, which should be reviewed in conjunction with the Company’s 2026 outlook.

The Company is increasing total revenues guidance range by $6.0 billion to a range of $193.5 billion to $197.5 billion driven by premium tax revenue, Marketplace, and Medicaid. The Company is increasing premium and service revenues guidance range by $2.0 billion to a range of $173.0 billion to $177.0 billion driven by Marketplace and Medicaid. The Company is also increasing its investment and other income expectation by $50 million to $1.50 billion.

The Company is updating its 2026 GAAP diluted EPS guidance floor to greater than $3.11 and its 2026 adjusted diluted EPS guidance floor to greater than $4.80.

The Company’s annual guidance for 2026 is as follows and will be discussed further on our conference call:

Conference Call

As previously announced, the Company will host a conference call Tuesday, July 28, 2026, at 8:30 a.m. ET to review the financial results for the second quarter ended June 30, 2026.

Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 (toll free) in the U.S. and Canada; +1-412-902-6506 (toll) from abroad, including the following Elite Entry Number: 4306002 to expedite caller registration; or via a live, audio webcast on the Company’s website at www.centene.com, under the Investors section.

A webcast replay will be available for on-demand listening shortly following the completion of the call for the next 12 months or until 11:59 p.m. ET on Tuesday, July 27, 2027, at the aforementioned URL. In addition, a digital audio playback will be available until 9 a.m. ET on Tuesday, August 4, 2026, by dialing 1-855-669-9658 (toll free) in North America, or +1-412-317-0088 (toll) from abroad, and entering access code 6500508.

Non-GAAP Financial Presentation

The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company’s operations and measure the Company’s performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally in evaluating the Company’s performance and for planning purposes, by allowing management to focus on period-to-period changes in the Company’s core business operations, and in determining employee incentive compensation. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The Company strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP financial measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Specifically, the Company believes the presentation of non-GAAP financial measures that excludes amortization of acquired intangible assets, acquisition and divestiture related expenses, as well as other items, allows investors to develop a more meaningful understanding of the Company’s core performance over time.

The tables below provide reconciliations of non-GAAP items ($ in millions, except per share data):

To provide clarity on the way management defines certain key metrics and ratios, the Company is providing a description of how the metric or ratio is calculated as follows:

  • Health Benefits Ratio (HBR) (GAAP) = Medical costs divided by premium revenues.
  • SG&A Expense Ratio (GAAP) = Selling, general and administrative expenses divided by premium and service revenues.
  • Adjusted SG&A Expense Ratio (non-GAAP) = Adjusted selling, general and administrative expenses divided by premium and service revenues.
  • Adjusted Effective Tax Rate (non-GAAP) = GAAP income tax expense (benefit) excluding the income tax effects of adjustments to net earnings divided by adjusted earnings (loss) before income tax expense.
  • Adjusted Net Earnings (non-GAAP) = Net earnings less amortization of acquired intangible assets, less acquisition and divestiture related expenses, as well as adjustments for other items, net of the income tax effect of the adjustments.
  • Adjusted Diluted EPS (non-GAAP) = Adjusted net earnings divided by weighted average common shares outstanding on a fully diluted basis.
  • Debt to Capitalization Ratio (GAAP) = Total debt, divided by total debt plus total stockholder’s equity.
  • Average Medical Claims Expense (GAAP) = Medical costs for the period divided by number of days in such period. Average medical claims expense is most often calculated for the quarterly reporting period.
  • Days in Claims Payable (GAAP) = Medical claims liabilities divided by average medical claims expense. Days in claims payable is most often calculated for the quarterly reporting period.

In addition, the following terms are defined as follows:

  • State-directed Payments: Payments directed by a state that have minimal risk but are administered as a premium adjustment. These payments are recorded as premium revenue and medical costs at close to a 100% HBR. In many instances, the Company has little visibility to the timing of these payments until they are paid by a state.
  • Pass-through Payments: Non-risk supplemental payments from a state that the Company is required to pass through to designated contracted providers. These payments are recorded as premium tax revenue and premium tax expense.

About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach with local teams to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace.

Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene’s investor relations website, https://investors.centene.com.

Forward-Looking Statements

All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as “believe,” “anticipate,” “plan,” “expect,” “estimate,” “predict,” “intend,” “seek,” “target,” “goal,” “potential,” “may,” “will,” “would,” “could,” “should,” “can,” “continue,” and other similar words or expressions (and the negative thereof). Our 2026 full year guidance, including our estimated severance costs in connection with the voluntary separation program, is a forward-looking statement. Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our expected future operating or financial performance, changes in laws and regulations, market opportunity, expectations concerning pricing actions, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments, and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments, and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive, and other factors that may cause our or our industry’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables, and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical costs; rate cuts, insufficient rate changes or other payment reductions or delays by government payors affecting our government businesses; the effect of social, economic, and political conditions, geopolitical events and state and federal policies, including the amount and terms of state and federal funding for government-sponsored healthcare programs, including as a result of changes in U.S. presidential administrations or Congress; changes in federal or state laws or regulations, including changes with respect to income tax reform or government healthcare programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act (collectively referred to as the ACA) and any regulations enacted thereunder, including the timing and terms of renewal or modification of the Enhanced Advance Premium Tax Credits (eAPTCs) or program integrity initiatives that could have the effect of reducing membership or profitability of our products; unanticipated increased healthcare costs, including due to changes in consumer and provider behaviors, inflation and tariffs; our ability to successfully execute on our enterprise optimization initiatives, including any separation programs; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that could impact revenue and future growth; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and timely provide for operational resources to maintain service level requirements in compliance with the terms of our contracts and state and federal regulations; our ability to comply with the terms of our contracts and state and federal regulations and our ability to effectively oversee our third-party vendors to comply with the terms of their contracts with us and state and federal regulations; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third-party vendors; impairments to real estate, investments, goodwill and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; changes in healthcare practices, new technologies, and advances in medicine; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; changes in macroeconomic conditions, including inflation, interest rates and volatility in the financial markets; negative public perception of the Company and the managed care industry; uncertainty concerning government shutdowns, debt ceilings or funding; tax matters; disasters, climate-related incidents, acts of war or aggression or major epidemics; changes in expected contract start dates and terms; changes in provider, broker, vendor, state, federal and other contracts and delays in the timing of regulatory approval of contracts, including due to protests and our ability to timely comply with any such changes to our contractual requirements or manage any unexpected delays in regulatory approval of contracts; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare or other customers); the difficulty of predicting the timing or outcome of legal or regulatory audits, investigations, proceedings or matters including, but not limited to, our ability to resolve claims and/or allegations on acceptable terms, or at all, or whether additional claims, reviews or investigations will be brought; challenges to our contract awards; cyber-attacks or other data security incidents or our failure to comply with applicable privacy, data or security laws and regulations; the exertion of management’s time and our resources, and other expenses incurred and business changes required in connection with complying with the terms of our contracts and the undertakings in connection with any regulatory, governmental, or third-party consents or approvals for acquisitions or dispositions; any changes in expected closing dates, estimated purchase price, or accretion for acquisitions or dispositions; losses in our investment portfolio; restrictions and limitations in connection with our indebtedness; a downgrade of our corporate family rating, issuer rating or credit rating of our indebtedness; the availability of debt and equity financing on terms that are favorable to us and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission (SEC). This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other factors that may affect our business operations, financial condition, and results of operations, in our filings with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical and selling, general and administrative (SG&A) costs.

 

 

MEDICAL CLAIMS LIABILITY

The changes in medical claims liability are summarized as follows (in millions):

Centene’s claims reserving process utilizes a consistent actuarial methodology to estimate Centene’s ultimate liability. Any reduction in the “Incurred related to: Prior periods” amount may be offset as Centene actuarially determines the “Incurred related to: Current period.” Additionally, approximately $22 million was recorded as a reduction to premium revenues resulting from development within “Incurred related to: Prior periods” due to minimum HBR and other return of premium programs.

The amount of the “Incurred related to: Prior periods” above represents favorable development and includes the effects of reserving under moderately adverse conditions, new markets where we use a conservative approach in setting reserves during the initial periods of operations, receipts from other third-party payors related to coordination of benefits and lower medical utilization and cost trends for dates of service June 30, 2025, and prior.