With 2 of its most significant competitors joining forces with pharmacy advantage managers, Centene isn’t getting excluded in the cold.The insurance company presently owns 28% of tech-forward PBM RxAdvance after announcing an initial investment in March. In September, Centene made another financial investment in the type of convertible preferred stock, according to a third-quarter monetary filing on Tuesday.RxAdvance reported
that as a $50 million funding round earlier this month.Free Daily Newsletter The healthcare sector remains in flux as policy, regulation, innovation and trends shape the marketplace.
FierceHealthcare customers rely on our suite of newsletters as their must-read source for the most recent news, analysis and information impacting their world. Register today to get health care news and updates delivered to your inbox and continue reading the go. SUBSCRIBE NOW The 2 business have
positioned(PDF)the partnership as a”real alternative”to companies like Aetna and Cigna that are merging with PBMs to get an upper hand on medical expenses, or insurers like UnitedHealthcare that built a PBM in-house. Throughout a profits call on Tuesday, CEO Michael Neidorff said the insurer is preparing a “first-stage rollout”of RxAdvance before completion of the year, with a nationwide market-by-market rollout slated throughout 2019. He called the partnership”a game-changer.” ” We will be moving to a different operating design which is built around transparency and more concentrated on cost-sharing for overall cost of care,”Jesse Hunter, Centene’s executive vice president of mergers and acquisitions and chief technique officer stated in a revenues call Tuesday morning.Centene reported $16.2 billion in third-quarter earnings, up$11.4 billion throughout the same quarter last year. However the company’s net profits dropped from $205 million in the third quarter in 2015 to $19 million this year due to $140 million in reconciliation payments to California’s In-Home Support Solutions program and$ 170 million connected to an expiring Department of Veterans Affairs contract.The insurance provider continues to make considerable gains in the ACA marketplace, adding more than 500,000 members since in 2015 thanks, in part, to its acquisition of Fidelis Look after $3.75 billion. Industrial profits jumped 56%over the in 2015, representing$
3.1 billion in the third quarter.”Our strategy remains specific focusing on low income subsidized population,”Neidorff stated.”We do not see a substantial modification in the competitive dynamics of the marketplace. “
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