CNC - Earnings call transcript Q1 2019

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Operator

Good day and welcome to the Centene Corporation First Quarter Earnings Conference call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ed Kroll, Senior Vice President of Finance and Investor Relations. Please go ahead.

Ed Kroll

good and Nicole, you, morning, everyone. Thank for earnings results you joining us XXXX quarter first our conference on Thank call. Officer host Michael Neidorff, also Vice Financial Executive and be Jeff Centene Chairman and website Chief President Executive accessed through and at which morning's call, this Officer; our Schwaneke, of can will centene.com. Chief by be in the XXX-XXXX available will call's replay (XXX) after the completion dialing also A shortly at centene.com or U.S. countries by dialing XXX-XXXX. and or in other Canada, (XXX) those dial-ins The is playback code both for of XXXXXXXX. make may forward-looking Centene Act Any future of expectations, Safe constitute that remarks under Reform prospects and about Securities statements the plans, of XXXX. Litigation purposes for the Harbor Provision Private most those a April today, Form XXXX results differ important other XX-Q and those various XX, Actual dated XX-K filings. the SEC and these Centene's forward-looking including XXXX, indicated result materially February recent of public statements XX, as from filed factors, may Form in by discussed and change. cause that will its subsequent anticipates to events estimates Centene developments

the While the forward-looking most the in do call first Company we GAAP under centene.com may XXXX measures directly can section. our available to that which be released some Company's press will found release obligation is morning A at of also we certain so. these Website disclaim comparable quarter future, point to The this reconciliation also refer these with the any measures on the Investors at statements measures. specifically non-GAAP elect to update in

CEO, Day next over Michael? to that call New reminder a turn on Neidorff. like and Investor City. Michael our our be I'd York XX, Chairman to Friday, that, Finally, in will June With XXXX the

Michael Neidorff

call. first thank and quarter everyone, morning, XXXX for you Good Ed. joining you, Centene's earnings Thank

results first update call, discuss our and Centene's and this we During markets the quarter of morning's products. provide course on will financial

project be main have the and This on to announced core the our emphasize, the WellCare we our We business. regulatory integration, Centene provide to legislative on I WellCare. Forward. to around includes our agreement while focus experienced recently want transformation team an acquire commentary executing environment results and continues of our will also working

Let begin Membership strong me XX.X first recipients. line marked increase and XXXX the quarter robust first This flows. cash We end financials. another top XXXX. by with bottom was of pleased solid million to with million operating quarter at quarter growth represents beneficiaries quarter begin were X.X an of and XXXX within

impact due year-over-year increased increased quarter adjusted year-over-year. HBR First of as when we to diluted the as We to to XXX billion. Care noted $X.XX which higher a acquisition year-over-year per represents XX% at announced points This HBR in the we primarily revenues the XX% [ph] of growth operates moratorium to The year. $XX.X health period reported XX.X%. compared This basis earnings XXXX. same Fidelis well share in last was first $X.XX the quarter

our to improvement due pleased earnings our net better network efforts. improved to points management adjusted scale are XX was leveraging enhanced We medical margin basis and report year-over-year. This management,

see to further opportunity continue We improvement. for

X.X increased times net of above single of X and net stable of further will previously operating prepared billion in to Lastly, expectations comment came his in line Medical X.X our XXXX provide details including on $X.X cost medical financial flows A earnings stated at guidance Jeff low cost. the or times earnings. high-end our times remained remarks. with quick in digits. range cash

Medicaid markets we'll discuss recent and updates, to activity. on product Moving first

XX%. million we the of recipients in million Medicaid performed of business X.X a year-over-year X.X XX, On or growth well first Our March book representing quarter. had

we we opportunity previously As to our margins. improve continue have see overall to an mentioned, Medicaid

to on state updates. Now

state. balance served covers Hampshire. commence XXX,XXX new appeal Centene on expected to in new from large will North September you XXXX. Medicaid we state that in March state-wide with will two the contracts [ph] The program Iowa, Medicaid commence Carolina, be to March active operations process The won beneficiaries beneficiaries regions New New three state. I XXXX to At we the two. between the cautiously an have Iowa's X, the recent in we plans the the the of contract XX Hampshire, We remain our managed in The X, successfully regarding will and remind July recipients. reprocured in is split program. equally RFP optimistic moving is two XX,XXX appeal.

sustainable I new the the we Medicaid program. in We will committed you, is any are and and Medicaid quarters care contracts no managed confident all higher managed HBR remind different. Iowa a to is state book initial operate a care of

As gained succeed medical new this with will management this begin respect will expect members. It knowledge pattern Iowa We margins match and that at we experience to in attain efforts is normalize. our we our traction to able point time believe to program. fully will over be and to this

This represents On the to a recipients. declined XX,XXX Next get XXX,XXX rating. previously basis of across increase star of beneficiaries back This Medicare, XXwe to MMP at XX,XXX a due Fidelis March year-over-year states. is Medicare served repositioning membership by XX approximately over four as and sequential projected. its

for next expect MA flat of business. membership return discussed our will Medicare to star MA revenue to to previously XXXX year. as four compared XXXX will the an be in believe be We inflection Centene Advantage apparently continue to We XXXX. a point book

as expect Ascension performing joint in the beyond. this the the and to growth venture profitable WellCare's XXXXs platform with MA and addition of previously along with suggested accelerate top We

key states. and members cleared increase increased sequential years. million health marketplaces. basis. these prior beneficiaries demographics with in across Membership of subsidies. The approximately consistent beneficiaries another remained marketplace strong business by XX consistent silver-tier with or a our Now, XX, XXX,XXX or members performance a year-over-year of XX% March enrolled quarterly on greater XX%. represents expectations. X At received insurance served XXX,XXX are XX% XX% This up Approximately than exchange The plans we

reflected in which updated our Additionally we year is retention see rate a last compared slightly higher guidance. to

the of to the leader strong expect have of process. year We another national exchange operations as

update healthcare provide environment. regulatory healthcare we Next, to appetite time, At on there an believe little and is reforms. legislation revisit I'll in Washington this comprehensive

cost nation's and its will and lower and class to parties bipartisan health government sector strengthens the evidenced a we attention government turning of with on care. This and see is both political XX% the With discussion congressional to of continue solutions welcome to federal to by enhance expand and and XXXX delivery quality Medicare recipients XX% Centene Medicare to presidential work States that the system. on of solution health the healthcare beneficiaries private improve plans. programs. ways Medicaid private continue elections,

prescription for greater price efforts will This continue advocate see to pricing. pleased on drug includes are to Centene We bipartisan put costs. towards net transparency. moving reducing forth

We rule recent have response to rebates. stressed these the draft things PBM in our on

our compliance in Thus successfully have Centene service RxAdvance. equity been This and The with states cloud-based national platform, that went far standard manages benefits Nebraska. full the ahead a has with implementation migrated is transparency. RxAdvance We drugs of unmatched and PBM the and into interests curve seamlessly. two specialty Mississippi

healthcare obtain care. Medicaid. be states to to above comprehensive would a purchase the to [indiscernible] of of in credits. of the and companies strong $XX capabilities be recently including We Medicare federal significantly increase to increase predecessor This the help experience, marketplace of creating to focused to quality enable sponsored Centene's front level. on on with the in partial a Americans our American their Medicaid the our with exchange given is markets. coverage to believes has ability a able pro to addition level to premier on will Part will basis of demonstrated Advantage three new offerings, to developed together was every XXX% scale to would acquire additional high-quality to states CMS the a now comments waver assets diversify expansion. commend WellCare health political federal D Medicare affordable states access and Medicare XXX% of Medicaid expected line few bring make of expect like to WellCare. flexibility programs. offering approval and announced working forward growing. which the allowing be growth This companies to Centene primarily Part population coverage expand two you, WellCare agreement Centene and to combination quality tax up significantly end access below Utah's and portfolio with their Medicaid continue advanced enterprise spend are provide our adapt our decades billion both bolster progress. its efforts enhance exemplified all states of product D. sure adjust Centene by top-performing remind The to at the will that government rollout scale of combined and We accretive look with like provide have I'd any regulatory and and recently to their be citizens giving approximately I forma to to a This would affordable to greater of over and We On annual changes and most making about the time. our [indiscernible]. have XXXX. expected is WellCare's administration's XXX%

of addition Medicare expertise creates the opportunities existing Centene's believe across markets. WellCare's also We significant

U.S. company. presents XX also portfolio. that I think Centene's to is it than cost income More seniors. [indiscernible] will providing quality people It course target focus XX% Medicaid turn are day note further companies Medicare WellCare's or extend of of combined robust opportunity complimentary the and our Centene's low at growth Advantage healthcare to existing offerings. of the combination this below is approach low to to of XX,XXX for on The NAH Both seniors in our strategy. high market. accelerate the federal the [ph] XXX% strengthen will and important a substantial

markets. Part as across will able Centene's XX will million Expanding and we XX clients. will it of footprint exchange to the provide growing consists beneficiaries services over from million This in in states. million new be Medicare XX from benefit our to presence to combined will U.S. leverage X The our company recipients D we WellCare including expand XX exchange price healthcare Additionally, Medicaid

and on We care will Medicaid program. those the servicing in addition exchanges in the TRICARE organization of country. our individuals The managed enrolled WellCare position expand as the be also largest the will

a remain will values largest similar integration achieve largest believe transition. including of will ensure and exchange the become our provider both with the We're local fourth we and We and planning help seamless approach company. models company's working we care already offerings integrated on Medicaid

We when hit the ground running we close. expect to

Our talent. synergies attracting integration for include capturing members, and retaining the and priorities delivering values best

provide further to combined enhance such [indiscernible] as including the combined data our logistics. provide as of company success advantage. tools both with our targets we which our leaders platform leading platform be synergy We have will companies experienced We transaction. in essential to and accretion the confident when Centene's in are that believe technology outlined the we will and integration quality company the It announced a competitive will care analytical

cutting-edge enhance specialty platform processing We to We WellCare's and will of also want in We our This to with enhance quality advocacy. providers. capabilities. while the leading scale, ability high high-quality lower recognize Further coordinate continue to membership will of base should invest care cost-effective significantly systems network technology, integration across the costs. Centene's to managed ensure and access importance to competitive practice.

to want adequately also are that compensated. and ensure We these providers appropriately

regulatory at appropriate initiated adjustments. preliminarily have We appropriate federal the the discussions level with

these of describe laid the being will are have a been found process five out [indiscernible] level as state for We At timetable and and submission. discussions others have found. the constructive in

authorities appropriate states. these in processes states It taken opinion Some the will have largest with place. preliminary regulatory our protect providers, recipients, is discussions and our

$XXX estimated billion. in XX% be may approximately of far, The Nebraska stated. of forma access we for there previously, form to forma internal some company revenues and XX% have revenue pro combined commented divestitures maintain and timelines XX% Missouri. $X our billion forma will continue have of for our Medicare thus and pro [indiscernible]. Based Medicaid, approval mix of the The EBITDA consists pro for I we of on that XXXX As

expected. increase throughout the than Shifting of A this months rate rate move in since Fidelis, targets. We XXXX will to performance our We set the continue the we of In to to restatement our updates stage other IT. outlook, XX first quarter remain process. our close collective provide CMS Medicaid and as with with significant recently state an combination are February look note quick we one of Fidelis transactions confident Advantage very transaction X.X% to [ph] plan accretion to smoothly. synergies on approximately expect be beyond. us strong issued Medicare running the We notice to shareholders, stakeholders. better composite rate we and gears partners and forward In members, and XXXX maintain adjustment to and for is a value of positive results providing summary, of our momentum continue integration is the pleased on realize approximately track to

all will believe diversification Centene's of pipeline sustainability Our growth. WellCare and lines the opportunities enhance additional of We remains that of the scale robust. across the business long-term acquisition provides

future We to to want are who extend governments ability optimistic about Centene's in and our partner position leadership [ph].

Investor thank interest and Ed to is continued the you As New We XX, Jeff. We look our Day to York reminded turn Centene you, in forward over there. call in we'll seeing you your City. now for June

Jeff Schwaneke

you, XXXX Michael, results. strong and good reported morning. Thank morning quarter we This first

increase First first quarter per quarter quarter was $X.XX and billion, revenues last share to the of XX% adjusted this of an diluted over were $XX.X $X.X compared year. XXXX earnings

as X, on details, December want record to remind the to the I XXXX. of XX, into February get distributed stock that everyone of stockholders I company’s was split XXXX Before

additional the Fidelis Total expansion, insurance as for of of the by new Illinois details first live of $XXX growth XXXX. quarter. expansions another marketplace State result program, going payments the York. pass-through and $X.X states me of moratorium in and grew of the approximately contract million business, $XXX state the New New billion payments health Now operations health growth Mexico in and in pass-through was in approximately of the from the XXXX fee primarily revenues offset and region XXXX partially million Pennsylvania acquisition from insurer of many beginning This let in the California our for including of year-over-year, and LTSS approximately a provide the by Care, programs

of XXX These quarter acquisition The the year’s to the Moving ratio XXXX. in higher XXXX. in in first HBR, year last fee was impact compared this basis XX.X% on to to increase and health benefits in the contributed in the XX.X% Care health a insurer which quarter of as year. last seasonality to due quarter the in and XX.X% Sequentially operates fourth HBR point quarter primarily the to increase health decrease due marketplace partially primarily Fidelis first was at of the from of the moratorium continues by items points and business, approximately offset moratorium the impact HBR performance from remains basis with XXXX fee health XXXX. is in insurer marketplace the the The strong XXX we the insurance perform and million membership X in to well the of fourth ended business members. quarter

stated to pretax X% year expect range. to continue the We margins for to XX% be within our

Fidelis last general on quarter primarily to fourth by administrative and the the selling, and Now is the our sequential of basis this X.X% open enrollment X.X% Medicare were the health year ratio seasonal in due The SG&A, in expense the of quarter ratio was by adjusted was year-over-year businesses first recognized year points. compared XX that to XXXX. the lowered of Care with decrease marketplace decrease in XX.X% driven insurance associated to which primarily fourth XXXX. The quarter acquisition and costs

and million investment million Sequentially, investments. which higher higher compensation interest for previously expense was associated short-term Investment balances interest the from Fidelis million quarter. rates of mainly additional is fund improved quarter. the associated during substantially rates increased investments. balances was by $XX as compensation on interest last Additionally, year-over-year investment this and deferred XXXX expense deferred fluctuates our with on quarter, our were compared performance The associated increases Fidelis interest due portfolio as the debt with higher which short-term first last SG&A. first to year to compared the during well $XX our our higher on earnings quarter Interest compensation was per first improved debt deferred $XX $XX investment from last business and swaps. million and in earnings diluted last million higher by the $X.XX deferred portfolio year and increase to is acquisition mentioned driven the acquisition, on year-over-year share we offset compensation with $XX recorded to with portfolio investments in income underlying The to million increase costs quarter the our expansion investment spent rate due $XX rates income average

quarter a for XXXX rate compared XXX XX.X% respect XX.X% rate first was expense was tax tax audit the credits. of tax outcome for health first fee associated The the moratorium to and tax R&D outcome lower basis quarter of in a points effective driven This with the with in in XXXX tax the federal lower XXXX. by tax quarter rates. favorable accounted reduction to favorable of insurer the Our first

Cash sheet. the totaled investments billion unregulated held including $XX.X subsidiaries. to at on million balance Now quarter and by end, $XXX

level end XXX% quarter filers at which the credit for risk-based facility continues control $XXX on [ph]. be borrowings of to of in $X.X includes quarter NAIC Debt percentage Our our authorized of billion capital million at was revolving end. excess

year debt-to-capital Our XX.X% XX.X% XXXX. debt ratio nonrecourse at the XX.X% excluding last fourth of our compared to was quarter and

Our at days in consistent quarter fourth with which XX represents of medical the claims quarter liability billion XXXX. claims totaled $X.X is payable end and

times run be Fidelis. range We the X.X increase customers state which the health quarter provided in the trade liabilities an in offset expansion was April. a growth operations Cash in premium long-term of in was in health risk other from net Florida, Mexico in plans expect receivables to due increase in earnings. were activities driven was commencement operations of or or and billion primarily of million rate the basis delay business DCP $X.X by $XXX our the resulting by marketplace the XXXX early of The of payable an net cash and increase to flow from continue health claims in in one the the mid-XX partially on adjustment insurance earnings, from business payment in liabilities for medical provided the to by marketplace New insurance first with a inclusion the due to and flow primarily Arkansas, Cash Pennsylvania an recognition operating and by XXXX. received

Before comments let revised I on me a the make guidance, few discuss our acquisition. WellCare

the planning As Michael working approval commented, are regulatory begun process through activities. integration and we have

continue be we the early planning is comfortable and it regulatory we and to While at the announcement. integration still targets approval process, transaction communicated in with synergy accretion

we keeping we forward you look this updated. progress to through As process

$X pass-through we to billion XXXX guidance our updated billion guidance total revenue first, following of at by annual driven on additional items; Now guidance. midpoint $X.X the the for are by increasing the We New payments in business, combination of marketplace with $XXX the retention million in and member award. a higher-than-expected York risk to driven driven associated the due $XXX health contract proposed Iowa by million and insurance changes California, primarily and adjustment, the

is an higher diluted we year by increased effective ratio start with $X.XX to per our increases segments. to XXX now in reflect all to Second, revenue line quarter and and $X.XX summary, across XX.X% are associated is adjusted had share my per shares. diluted diluted increase updated $X.XX health our may of growth earnings billion associated we an points income $XX.X by increased with These to the XXXX partially good believe X.X% diluted XX.X% provides audit a per remarks of earnings the basis $X.XX, driven full the concludes XX you million share per an to questions. of insurance recognized the of XX% to million are with guidance to In $X.XX effective That our share for share far total diluted adjusted X.X%, good this previously first shares the the offset HBR lastly, I and opportunity expense the investment SG&A year business rate and future $X.XX to revenue year of share. We continued are share Overall, diluted lower we tax business share. This our X.X% SG&A XX.X% favorable outstanding of for X.X% $X.XX adjusted results, in earnings tax GAAP growth. per $X.XX quarter the costs $XX.X performance the marketplace so to of per guidance by mentioned. is midpoint second increasing open rate expected tax per XXX for operator decreasing of by billion, a diluted of as follows; first expansion at and of revenues to ratio full-year results, earnings

Operator

Thank you.

ahead. the Our begin Raskin of Please now will session. question Josh Instructions] first Nephron answer [Operator from question and We comes Research. go

Josh Raskin

morning. good Hi, Thanks.

Michael Neidorff

morning. Good

Josh Raskin

Michael. morning Goof

that’s and time stars Centene little that information all could So my Part was a And your month gives for and sounded as then thinking updated the we’ve the year, flesh of just talking that? et et go confidence, was guys half progress, close combined WellCare point, or WellCare of opportunity excitement you integration to a helpful it and be and a bit D waiting sort I we thought is more started anymore about it you the need? giving about cetera, And out expertise the on management then there team? little as and for understood any around for to sort and cetera, so help more acquisition just Medicare and what next bids one now I you four how that’d the I with yourself got are think thoughts plans question a to management bit like well. inflection wondering if quick one on the on

Michael Neidorff

Medicare others Josh, and bit. then jump I’ll the on can start a off in little

year Medicare come said be that together, we’ve things. the where the the will we’ve we been testing On XXXX

will be they the two that have talent some I and move for space on once our think so on Our year very here to platform, re-contracting the work strong until new that do we Medicare will close integration a strong on we and Medicare contracts can’t providers WellCare, have ahead we with together putting added into be a continue we that basis. own process things close we’ll and this products, talents create XXXX recognizing successful those with we

to On the comment. going I’m not organization

have, well a that people going get look not what until organization I closer much on the we that, and into businesses on like. will to they as closing, we as knowing as, going a to need call about be. everybody And respective said the and simply will say we’re know it’s not that to earlier people first it. I to I think absolutely better too like new That’s get before this, to is WellCare Centene the anything their I'm and the, say focused move place through

Josh Raskin

Okay.

Michael Neidorff

will some are much, billion WellCare I the positions management $XXX working that see, just this responsible company. this able with and move of very we to add But, important senior they'll at some at, into new be have

Josh Raskin

And That’s contributing the as one just coming comment much start future helpful followup from as in Medicare that quick where on years, growth is Michael. about XXXX, thinking as as XXXX you've Medicare year Medicare? talked about the growth of XX% we much of XX%

Michael Neidorff

of continue You see It's it said course to to be know, you’ll well been, it sorry a so the Josh, going ramp think access and I I’ve decade, rates. for I in up. then not

Josh Raskin

Thanks.

Michael Neidorff

Thank you.

Operator

comes Fischbeck Our of Kevin next America. question from Bank Please ahead. of go

Kevin Fischbeck

to you based you add about might Great, you've with started the to couple state in average say process states factor market that a and how safe WellCare sounds with of I have to It where replace where the you that pro that it a potential confident expect conversations have do already risk new the be divestitures two the you like thanks. that you consolidated of you have required? think years pro will still reprocurement you going to the the you fact then, sustainability guess other the How where be a states there divestitures. Is did to ask a state wanted feel player in during WellCare? forma deal. on forma the in question above And XX% the market the find upon share, again I states share? not

Michael Neidorff

at Kevin you this, very [ph] are and They not our issues transaction, front we’ve I’m and discussion in go ahead that and know this discussions a will I worried to think far of say discuss in their you as constructive provided shared we and run of what about of ensuring through we states them. this. and would looking the plan Then before for situation for different the networks we the then those I with care to this this I'm to going lot with what��s at taken that with kinds tried them. and provider look I focus to tell we, of thought say well best recipients protected and terms

those we’re all So on focused three things. of

concerned, those what Missouri are in are we even if have divestitures do. WellCare two they the as to subject that it and three us discussions discussion and Centene. three Nebraska of as I’ve about as to and where the in days in we're mentioned are there far past anything want talked and As are to the

So we’re want and do working through see there there. from go to and what they

Kevin Fischbeck

the two-year the when number you into kind loss that in amount does potential if factor approved XX take [ph] get also down cliché the any guess to numbers about in were membership in I road past you assuming going did of talked years the of that divestitures, it [ph]? accretion couple into of states divestiture account issues a

Michael Neidorff

absolutely. in position a sure. conservative on Oh we’re, factors yes yes, It so that,

Kevin Fischbeck

process, room are how do more get where Okay, we in we improvement, multiyear you about where, then if could your target there? margins margins takes this where I Medicaid and to Thanks. that process, are that think mentioned it we is have question, how for ask versus one long a

Michael Neidorff

never standpoint us to we'll margins, perceive they never are we’ll the here, bounce improve off. from off scale the trying stop Chris, moment pressure all Well, because you the Jeff going and take a improving manager's

working that because a we we like want balanced The want it. so want your them it and we’re you a and, this. process it to with big, an want network, in come products, maintain the you with to part never contracts don’t want then product, is but to, of have do to a we on various ongoing it’s keep sustainable, providers So hurt we our short-term, something as view up, huge don’t it's way improvement then and

it’s through well when going providers us very management a more work risk-based manage can So they total process we’re with the moving and and where more do and we’re to it.

think I but see basis. it what's a that is longer-term important it’s a I helps. on hope thing, sustained that we So

Kevin Fischbeck

thanks. Yes,

Operator

Our of Sarah question Please go comes Jaffray. ahead. James next Piper from

Sarah James

drill Thank It about results year-over-year we’re of you. the wanted health were headwind implies to line. basis services like increased I points underlying XXX down the and which looked services on costs plan strong. was that about $X.XX estimating

there the and you contract the us we that on think and levels were I [ph] pieces XQ gross and knew some on with revenue how historical VA line NHS services margin should bridge can XXXX about moving to the forward? acquisition, So product help going

Michael Neidorff

one to to Jeff. I'm that going point

Jeff Schwaneke

think the of I it is we think a than things things I nail head had quarter a mix you is, on hit Obviously, the few of year. a different couple last Michael. the Sarah, business first, in think of Thanks there I first

would what guess to I I first quarter the say is bridge fourth quarter. the would So from I

the acquisitions business line think that of part also are that fact then we’ve had that’s given business. the the of more that that I a and you have of no appropriate a that profile we mix VA that’s couple longer changing made

quarter in we full a bit to service doesn’t home that are remainder There quarter normal maybe the you for are so, I look to would is would occur would at expect quarter, but is percentage, quarter health of year fourth to the would every or every consistent third there I so last - like and QX I mean that’s year reconciliations lumpiness because think think bridging pretty little is, year. example some going what the some say business those of look what the in And fourth a it consistent similar see I I for to and the either fourth and contract cost it of the expect the has lower. guess for to year that’s certain have

Sarah James

talked Q on half Got second for or last risk-adjusted guys you it million be half last and about through XX% which, average you based to guidance, here up clarification would one and the quarter QX today’s $XX benefit year on about historical about one XX% XX% a so talked XXXX.

XQ? a adjusted on to seasonality guidance and two benefit up make still So that’s I XX% [ph] want risk just about is been has in what there through those sure a XX-XX aspects split

Jeff Schwaneke

what do of with based through-up calculate right? sure have in XXXX last when roll really quarter The to through-up the on it’s You consistent year’s, the XX%. is the just can’t you order said. XX-XX adjustment business we piece, to the risk XXXX’s make on it’s you first that in Yes,

on So, calculation XXXX based year. that’s really it’s activity the the in state-by-state business a

Sarah James

you. Thank

Operator

Fargo. Our comes Peter of Wells from next Costa question ahead. Please go

Peter Costa

Good guys. quarter morning. Nice

Michael Neidorff

Good morning, thanks.

Jeff Schwaneke

Good morning.

Peter Costa

the Can the which this you you’re at you or what this see RxAdvance, WellCare performing of what to a in how Is tell matters a to by of doesn’t think expectations you're starting at about RxAdvance to states PBM up us what what thinking that better point certainly couple has that’s behind You’ve has doing, you bigger that now do can at about is convert performing. matter your WellCare point? Medicaid had the [ph] but looking than in maybe it Medicare do given CVS space? much buying space power the little

Michael Neidorff

some tools to information it’s modern expect provide enroll transparency, the really you as that to doing. PBM is one, day the the find well. think find a we will I purchasing that always lot implementation. we’ll and I useful continue serve with lot RxAdvance to flawless of continue do to a I to the I in great And doing to are ways they’re states improve more type going better. really going are first very sale WellCare Two, think what part, everybody a this been has that the of and with think they RxAdvance

do and will the help to and to combined add do ? two want the something you want of Jeff So, the you add something? combination Jeff

Jeff Schwaneke

Michael. Yes, thanks

think this we're importance capabilities on WellCare of pharmacy is, think referenced certainly and the cost MA and the as their I just team I the ability the experience. we think Yes, at from the we will Michael to and do PDP leverage combined point businesses So management the looking to the business. recognize Peter have your combination

Peter Costa

talking of CVS? you WellCare kind some So are doing a of us and combination what about currently RxAdvance with

Michael Neidorff

each part working in now the play what we'll determine should one it. we're through Well integration and

probably of so question And But months you're it's Peter. ahead a about us. two good

Peter Costa

last the question. and this right, All is

perhaps The completed was any any the expect benefit California there for more you talked you of reconciliation about reconciliation year? year third of program some in you and had that ending quarter last do this and XXXX, sports in-home remainder that the the getting of and some in from quarter services of

Jeff Schwaneke

we're quarter notifies are what any are. waiting see typically our for and come, as the you and to have the are in final aware not know happens guess results that in this and more There state to reconciliation well don’t of what you was waiting you that included the we so you, any guidance I of

Peter Costa

expect And it positive to you be do when happens? that

Jeff Schwaneke

so estimates, relatively go I but estimate, had way, a making history could we’ve conservative that. I at guess leave of we've our made that it it so mean best I'll either

Peter Costa

Okay, you. thank

Operator

from next ahead. Fidel Our question comes Please of go Scott Stephens.

Scott Fidel

morning. Thanks, good

late that interested is you particularly impact Then market on final made it just XXXX specifically or whether reg the your out will also question, in the on subsidy Thursday? tweak First see any assessment don’t as think have that you being material? came CMS it just fundamentals just exchange exchange

Michael Neidorff

want comment you to do Kevin, on that?

Kevin Counihan

Sure. Hi Scott.

the think much of think rule. We that we're change either appropriate. no reenrollment. the fact know, definitely there’s in the final fee We support the lower in loading You pretty is new general automatic the I user or silver supportive

we changes well going create the the both are cost supportive manufacturer by manufacturer we could also fee user take you rebate attractive incentives I the sharing lower generics. about offset, think as talking as are And about offset to to also talked We of or that think people is the coupon for patient that fact manufacturer more for generics. more be take of coupons of is the members incent to of headwind that actually of some which that going some to exclusion

what by So two you’re is we APTC million $XXX that I those offset will think referring items. of think to some less which be projected

Scott Fidel

Got it.

all attribute to So the net-net of overall? you rule a positive different of the look neutral slightly you would variables, when at final as more exchange sort

Kevin Counihan

That's our view.

Scott Fidel

the interested tack in of may of actually in noticed just two how probably the just Thanks. Okay be that could walk have the pieces in earnings managed Jeff we'll gross the is mechanics a specialty just functionally had on within question, just you as XQ question you basically shift over the new wanted implement segment managed that of continue in a specialty mentioned segment, follow model. in care Sarah's out? how through more I and guys exact noticeable I to margin to the or from some us works about to you moving from to you if of pricing plays benefits actually interested a the the P&Ls, how just specialty the then in MLR sort see it Q it lower care RX out segmented and the

Jeff Schwaneke

language gross Yes, included results you’re that that directly And you segment only know, the right results. our margin you benefit and everybody we specialty XX-K, that’s are exactly there would turn a lower make right, in for item. what segment preview intercompany the in be that's in that’s the just clarify would health plan for to sure disclosure the in I a exactly

in consolidation. So that gets eliminated the

So GAAP not for for service the example, talking line on of cost financials. - you know reported the about we're it’s

Scott Fidel

thanks. right, all Okay,

Jeff Schwaneke

Yep.

Operator

Please of from comes go ahead. next question Jefferies. Dave Our Windley

Dave Windley

reduction to after that right I'm elimination move correctly, I price as would a governor curious Hi and pricing a supportive manufacturer in your would of happens? price I Centene if rebates thanks, in interpreting to I'm saying caught prepared that that the and good if see interpreting you that I pharmaceutical Michael increases remarks ask net be want and of followup mechanism I'm what net, believe you to a morning. to pharmacy,

Michael Neidorff

something we Well, price that's time will pharmacists to work if to obviously be it - said billion it competitive more ever cover would information that I and believe as move to. And world And governor will think RxAdvance the will we all that the we that successful the take that ago as have fully said we will in critical have seriously, some we hard a increases credible. one, a because try us is on be purchasing growing are grow I we I XX mass who continues to number. to see the in it drug becomes

we'll need competitive I encourage the we data pricing. to think have

Dave Windley

were with free-sheet a thereof the relatively and or contribution better items was it, example, were curious the other moving thanks. I'm parts you expectation an after any as If if that if for I in adjustments, lack parts, if medical other come there's flu Got moving reconciling from guess I to back flu in costs difference year-over-year line those there this year, offset? there provided,

Michael Neidorff

that last a cover the years it not answer initially, looked associated factor total really the and scale to that. not year season Jeff remind year, cost. the is you medical billion enterprise over like when I'll Net have before had flu I the medical as let major size you we flu of but flu costs but I'll want Health flu this a $XX to the ago, part two

for that's not variation material have fully So Jeff? plan something that we booked a will effect.

Jeff Schwaneke

a Pennsylvania starting year the insurer we first calling the drivers of largest think, large new up, lot ago, the LTSS. see Michael did the say, spot Yes, are Fidelis would largest quarter a lighter thanks, flu including obviously Michael. moratorium I in which Dave, pieces. had, I the fee on. in out did We're businesses we but than say, is a the two we health I'd also being obviously drivers,

building in also level as HBR you're New a mentioned, margin and record Illinois new we both inception. then members Mexico, higher And those the of had in because Michael and we at Florida.

those smaller offsetting. on add basis, of they're all think an but absolute And together drivers you and so I were that kind

Dave Windley

helpful, very Great, you. thank

Operator

of comes from ahead. Our BMO next question Matt Capital. go Please Borsch

Matt Borsch

arrangement? Maybe companies can reach workable talk the confidence expect and Iowa that about unfold had you the that Yes. what cannot, situation, you peer exited you could gives mutually market you the and rate a how unlike you to

Michael Neidorff

member, a the successful been have managed very their have historically, long we've over stage and know, entering regulatory in contract new Well, And this down end a of to had have comfort your at discussions something fairly turned most you a environment. one, time, commitment even to we try obvious, I PDR we've them avoid. a program. have we in up senior at offered levels contracts period that's you than think, filing care before [ph] and a the It's first rather

improve at looked the our $XXX we this it. state floated actuaries sustain just it. available time at The additional the program just but it, to – legislation help we looked - and So million

have everything If time. with program. a the year place very now had a might exited. looking a at coming aggressively we they successful have administration be this the I successful some will so peers when have said also So entered or a I I in at new different that program. feeling different can in do and looked It they than was And past did how

Matt Borsch

which large of do as related participants would got small on I that given Michael, simple but…? and have the isn’t because you've I partly as you question in states the state? a states quite one know number question that, view is, with optimal follow a

Michael Neidorff

Right.

Matt Borsch

sufficient for some You like states Iowa? know of two are plans the size

Michael Neidorff

are, the let I we is this the it it Yes, me optimum Regardless size, just put think way. was us. of

Matt Borsch

Okay. it. Got

Michael Neidorff

on it would that, be on. it kind hit both way, Have you of we

four. to We I size Georgia think scale was the saw Iowa, in deal you three is then If and go it that. can two from with appropriate. three

we an we do fine, with in reputation So these of with have you and in we aggregate, states, can choice, and choice. the have the always impact out that's starts have of and have we you this well did because most much not choice have and when network it the, have

that have is. other it as families a growth how we're So, been And that on the very algorithms a members we it's they states in we're and many at there either get of it plans size the right. while, doing, a and had, the member look doing auto-assigns have and that's the as okay. obviously is. way it with But when you get and we've Florida they, for plan have comfortable understand some counties, with way, deal it of as work in In think are it there six the I and

And a so function to really hit it, you state is is the of how it size on really the many. as

Matt Borsch

much. very you thank right, all Okay,

Michael Neidorff

Thank you.

Operator

Please Charles from comes Cowen. question ahead. go Rhyee of next Our

Charles Rhyee

sort for rebates and necessarily go the right, of and a Yes, the tended pharmacy, talked price for understanding, it a credit comes in like have to healthcare speaking - idea this of I'd like taking be to can When budget because bit, my to model of part little back have current to thanks supporting generally don't states purposes. pharmacy, rebate and to you question. going from transparency. be used general to back to to

impact and this do the you towards I about states the as and how pricing do you of net as see new moving you and this transparency maybe think towards of even rollout kind try RxAdvance? pricing this if we your world, how guess, the way to of how would think evolve you As this you operating maybe Thanks. do within model, market greater business, sort well, starts pharmacy sort moving see particularly to see towards them

Michael Neidorff

are right they and where for where that's transparency and and think do it now. I are more I pushing it. or they pricing more to mean how for is pass-throughs the

pure from have at level hearing really and of rebate just federal and thing. of the of rebates more point-of-sale away we're and they type model more the that So moved type

all can flux can thing. everybody I transparency, competitive think now the a and So in to net whole, the can better price cetera. it move do it's transition, And et and is we do things the right in type bidding with we that's much a

plan rebates is in volumes and the our here's with drug it's know you and and and as important So, discounts things, pharma. cost specialty particularly

is both. So to this that something can apply

on it really are moving an I states own it towards think way basis. and adapting to the So have their in been more ongoing

Charles Rhyee

of a only for Dave's - you about drug right drugs so in talked are following in is sort maybe competition do competition. lot particular drugs really up to where in there in cases, price then you governor question, in lot manage class, competition? there's those look How little costs no the no specialty, a these particularly their these to price from but of And future, in transparency, the many a of terms increase on what of about

Michael Neidorff

only you know, the utilization a curative drug, effect effectively. Well, if you have I by mean, is drug. you managing it manage one through

drug, manage there, to ensure you other. pharma you that's it are be long the the if this things, it other for for earlier, were helpful help it's, you especially you supportive hep know important. going and the whether a going get second or C and drugs we is you're can, you what is you And them. use the rebates going and it it's raised came is they So think When getting the it people one you same, to expensive what's up. and them curative, the showed I aren’t take genome before first out mean to as do going or best it's didn't I negotiate as way be one but utilization to

usually a high, side for take very – and not to under up So eventually long. if Bayer very time we and Bristol-Myers you. used pharma somebody quickly, learned I just leaving your in room too little be you to you're come it's margins in not for

to too get that competition pricing quickly gets abusive. going if Does so, And the are help? very you

Operator

question ahead. next Please from Goldman go Tanal Our comes Sachs. Steve of

Stephen Tanal

morning, thanks taking guys, Good question. for the

Michael Neidorff

Good morning.

Stephen Tanal

just for HBR, I guess the, on a of and I up about wanted to second. the sort the talk follow new programs DCPs then

like XX, X excess returning DCPs the to days, from suggest XXs, and claims X.X the reserves at So days it's programs quite XX.X $XXX new solid or in four outcome guess states. I expanded that a in pretty is first would to per QX comment end of first seems like just up guess, it the using out like I how say, It in HBR their good shaping when the to of are on those I'd come question maybe ask you've quarter numbers the ex-Fidelis real flattish half. million so entered day. mid days, the programs around new but let's of sort early this looks get to into is

excess marketplace that's tell or we it that there to sound time the does right? finally, the path just of anything returning XXs, an otherwise math mid us So line guys. you'd level? around that sort about seasonal Is fluctuations are Thank there and if thinking and be think right is fair should of to about as to or you,

Jeff Schwaneke

That year. lot couple end of There's question. timing we're our But working what still mean Yes, this by doesn't Fidelis in that certainly, that is, reduce through the the mean a the a that's cash that with the of things could DCP I'll this I Steve, on in saying the start that with first. long-term range. year. sometime we're

not So percentage measure, lot the at of really very the as DCP, been a years, to a how the two day, look end - last And ultimately of expense, reserves do reserves of since a methodology. are. that We you medical payments. more think we've maybe at it a of look like of which differently five, necessarily has of a by with payment Right? over over very timing this consistent consistent year. It's is when had your ten and timing reserving

would is, timing more I guess, anything. I what it's than say related So

The obviously are balance. some balance, Those accruals with some contracts IBNR other the in those accruals providers. we the is, in have our risk-based in of some thing IBNR

IBNR paid, get those down. when So goes

a payments So and those we are perspective. timing the that dealing why we're with things call out of from quarter-to-quarter

Stephen Tanal

Illinois Florida, state helpful. comments and [indiscernible]? any - just those very programs, And the Perfect, new on on

Jeff Schwaneke

sure. Yes,

what guess it's line I say side, HBR the I our is, would expectations. On in with

You remember Pennsylvania have award. to the an is LTSS

from to going be it's HBR. range XX%-plus in the So an

really with our it's and running company. on mix But impact programs the the exactly obviously that a are in HBR So of of those business total expansions in are line expectations. general, the

impacts there's the the lot additional Michael our As continuity obviously to early build have expectations. nothing care in margin on mentioned and of before, periods a but you HBR that outside then times program, that of of business new and

Michael Neidorff

new be that, date and way proved calculating, you you accounting but don't we history accurate accurate the this its - I think the quarters the may two, received it. need quarters very - plan, for do the to have, used just if a in to do I of add methodology of to to able three - be claims,

see we never, fact proud so, but it lot adjustments say works. of of and a never are the we'll period think you don't I prior

it XX% So first typically three at rather so. chance, for than, we or quarters take book the will the

So just and typically well. knowing it served if not is has that where it's us

to approach the take that's it. So we

Stephen Tanal

Perfect, thank you.

Operator

comes of Leerink. from Ana SVB Gupte Please next ahead. question go Our

Ana Gupte

taking you appreciate morning. question. good thanks I the Yes,

I'm having arbiter here will deal the as the with assuming the you're in the again, be DOJ, conversations which On States.

and broad have DOJ favorable if exchanges for on in in dovetail what Special like context Medicaid that Medicare, and the does states are like be in And no platform view of you so and to of Florida? a Medicaid the on now what you and do Needs how is a they integrated, feedback to getting players this but that with it types As any? places from and of looking integrated, kind type not states, Plans participate in across

Michael Neidorff

I a and think and and balance control long the basis, recognize states very have systems a leader, outcomes capability to the we so a that way. fair costs the improve goes they recognize really

Now there last acquisition back, of that I has kind going Amerigroup was been not they guess this was, one occurred. the it think said I Medicaid

And of the this so, you have have rates, that reestablishing as grounds. that is competition, things form setting different of they But nature. a at you you when alluded are states look

that want should I So first as one really elements, these what's and the kind get of to finding it's anyone are really focused payer talking for in about kind recipient. And transaction. said, this through their working in best to expect we're but all the of and three it's it's don't them, areas, constructive, I and ahead questions

the we're contracting do able and of what contain so As we size benefit the we can numbers, to thirdly, and it's to data risk that against how state, we get kind them, do mass of many how them you gaining how we deal that. that, them and not of do show costs, is with large the based network. and the wins. the the to and scale but important a provider critical and want you allows fragile think just And about to everybody population we do emphasize This how

thing So about and I'm with, state and is not where they're I Department equally understand that and done good federal Justice at the the to we've able they at now lot maximum the I outcome questions, the than that think right, find absolute find guarantee I to that one this get - been have level, further the to in that the think through and I'm but it's very add of I'll by they're we it. right process we'll and is an positive and deals doesn’t other asking and enlightening regulators have, smart that, a it I trying very trying time. finding point encouraged other this it's are think just we feel I'm question so, level and it there and

Ana Gupte

updates and re-procurements Louisiana on any then the Texas one the the update. for there? Thanks And more

Michael Neidorff

in… Louisiana, the Well that well just went

Jeff Schwaneke

due think next the Texas I in Louisiana, or than May submitted other June previously is no week Yes, I be what to think timeline timeframe. and discussed, on update we've

Ana Gupte

I Got much, it. it. so appreciate Thanks

Operator

A. Our Rice next J. Suisse. Please question comes Credit go from of ahead.

A. J. Rice

everybody. hi Yes, Hi.

and I is the retention flush those public gave member a better you are more, last still on you comments, wonder favorable, range, one your the last the maybe this First the was like little range exchange the changed but this Investor you out be the you year? down being year or said the year, margin that versus you slightly exchange margin talking think what on last year that what risk XX% there? and you have looks adjustment, call if or highlight And the about when could I to within is about X% when in about think - way as you'd you in Day thinking guidance

Michael Neidorff

Yes, Jeff?

Jeff Schwaneke

to nothing more Yes, Yes, 'XX; be we in that similar than said margin to thanks with guidance 'XX, we what had a there. do XXXX AJ, bit little down from expect 'XX, it's to it previous we different Jeff. no, Yes, respect our, the exchange. in our

can that the a premiums. experience, end, the and at how meaning and stays beginning a and us are we guidance adjustments side retention we've got risk continue in as thing areas very piece and member is grown And seeing of actually today. where the we We've a that's to added have the premiums historical guess other certain obviously and assumed geographical adjustment successfully. and to we on that the back on have which the you risk grow, is from normal we're what a And lot to scale. good obviously business as tracking additional go based staying the Obviously, bit scores, which obviously, historical the that that you we've market, retention I see nothing on retention, that larger is a do that rate the I revenue members As a revenue capture percentage of a we've piece the you been little far other paying long is, our but of mean and of was think increase line. pays the on longer, guidance driving, return to with and significant, look risk rate the

A. J. Rice

looks and in just then, Okay. this glance like mean million a right, about development, versus first your $XXX this you're it hopefully year's quarter XX-Q, have And taking last. I at up quick I year prior

and new the what's know I number. - Is a about volume that? Fidelis that driving s comment of gross or it that a is that' exchange, Now and exchange the any function

Jeff Schwaneke

kind that's of of all a July transaction release press not much roll highlighting in of that because the Xst Fidelis that related does has pretty the year. release, XX-month which our include Yes, happened business, actually We press forward, Fidelis. last table to the put a note

X-month roll obviously number, So, XX-month does that forward, development Fidelis. but in include forward in is the not included from roll which is December's the XX-Q a that

the so there. And difference that's

A. J. Rice

Okay. all thanks a right, lot.

Operator

Wolfe ahead. from Please comes question of Justin go Lake Research. next Our

Justin Lake

at, great look there are WellCare PBM use us you've Hi. that they've conversations ability here. some on assume greater, And side Thanks, drive give or some when now you've guys Group One make been the pop a on their kind side, WellCare to been is dose scale, versus and follow-ups with save cost there? conversations greater of able comparable, good it you've on much looked had their with savings kind of any you may can PBM of morning, to Centene? comparison, of CVS is or the about how any I cost goods couple color lot able your it of to kind you of

Michael Neidorff

Justin. Yes,

appropriate with of a we respect net diligence was front. just, I comment we said, of So the there that through we on think as limited on those obviously relative announcement are amount pharmacy and of think I synergies on pricing an obviously there kind that's in deal process can things the to anticipated the part on as that the And that phase. went

at too than it point. don't appropriate think I into this So much go be that would to detail more

Justin Lake

in seeing or look can Okay, risk impact And, at how payable big as update expect you give get you shift about this risk you're at of side. pool, that on kind the just the on an risk you're a book? adjustment the any to full the margins point you kind kind here? talking of us of you you Can and adjustment be give of that given following us then up idea

Jeff Schwaneke

risk Justin. update year. anticipating and we're obviously every the Yes, a say that couple on adjustment for changes. that single of risk things we but would so I adjustment, payable million is a over I what estimate $XXX would quarter continually say

bit year, last in margin to it our the On side, expecting right the year. was lower we a line and in compared margin with our obviously we little expected and expectations for range

well, So nothing out the right exchange our expectations for with it and of line the ordinary quarter. there as was performed business in the

Justin Lake

great, thanks Okay, for the call.

Operator

Our comes Citi. Giacobbe Ralph next of question go Please from ahead.

Ralph Giacobbe

I go to quickly. morning. want back Iowa good Thanks, to

would a annualized the slides the X XXX little thought in your I half bit those you guide that I back number. seems said the U&H business in for remarks, be split [ph] closer your billion million was lighter boost to as equally, prepared the but United think

is So, maybe timing, just that the to it is reconcile can mix, related you hoping maybe that?

Jeff Schwaneke

I Yes, They percentage of business. they United, if mean, have just at know, didn't I half. you the I a larger think look had

XXX,XXX members. And so a we've range of previously membership, to of XXX,XXX think, I given

of half So nothing behind half only we've mathematics you're the obviously unusual market to the than year, other getting and so that. the updated that

Ralph Giacobbe

talked new MLR assume makes certainly in businesses you And then you've higher a Okay. said you which about would sense.

you remind breakeven just is if a this, it in and assuming a breakeven? year or loss are or us, one loss more For

Jeff Schwaneke

six in increase line months through the the in why about flow Yes, the for any and the more we're six on breakeven. months talking not XX, we're earnings so breakeven, you which and see 'XX assuming didn't revenue just is for

Ralph Giacobbe

Okay, thank that's you. helpful,

Operator

from Taylor Please JP comes ahead. of go question Our Morgan. next Gary

Gary Taylor

Hi, good morning.

sorry Just me and three let point so at Jeff. nothing to original go clarifications, financials, Michael, this all

Michael Neidorff

understand I financials too so… okay. it's Okay,

Gary Taylor

take shot That's fair. this. at Well you a

lot to related. about of on look that anything so timing of that in point payable impact is claims current that, forward comments XX about slipped XX the of points making in Just or the just out the like a when to roll the paid like the does on XXX days ratio there incurred timing Is at for does the claims year-over-year look fact, about payable basis appreciate versus days call a lot look from illustrating and I quarter this I earlier? and were first of it's sort Q, it you on the

Jeff Schwaneke

out. say mean forward would XX-Q, the and to number, of I that's three medical from roll I months those December. in claims Yes, only I no, mean, call a run out nothing that three-month this that so had is we've on

will, would number being in continue theory, considered that grow. So, things all to

forward. the roll have is a year only full usually you is and in – release three So press months it to it out

this number is our costs, continue methodology guess is. to unusual, that long where time. would from very for audit show will say, it's So, how we consistent, I percentage what changed, view, of single been committee, it's I our but medical a consistent every Board so that's and to hasn't The of quarter, which nothing on no, we're change, We information it a comfortable period it. track I mean is,

Gary Taylor

you. And, but and to for rates, the that little balances investment increase also quarter, the you the understand bit above on guided what called income investment the for of just higher balance the doubled better and more and part year-over-year the trying XX% you than investments investment and said but guidance continuing year-over-year higher caught you little out raise. Got year income a in about I a

So is extra color any much on so income in per doing how balance? better the you're on there growth investment

Jeff Schwaneke

Yes, sure. things Good two question, Fidelis.

the we impact first investments. the quarter their in second or So, We Fidelis, you of have last year. those quarter have didn't have of

full So the of investments. effect you get Fidelis the

our is, lot year's of than historically. thing other health health states payments the received fee reimbursement insurer fee last have The from for we we a earlier, had on the insurer

had that. a flow interest of that million on earlier strong sheet, goes for million, a had the the cash on and of that the think lot And So have short-term $XXX it. we cash and a past obviously to so in earning in we've the quarter rate to generation we year than you're that then to income earn $XXX balance and number investment we

driving a basis. up add So and year-over-year ultimately, really you increase all things, three on those that's the

Gary Taylor

what's final about at Okay. I the XX-K disclosure that or think the to retained effect quarter rebate was, moving of And of move the to driving merely the the starting what's is plan elimination, then health more in the dynamic in PBM less going that that? drives that mentioned the earnings some or one company, intra Scott second MCO seeing had specialty

Jeff Schwaneke

a the pricing, to segment. nothing just internal than far there. administrative margin we on on small piece be as but be dynamics No, a move to moves front, transparent margin the there, There's as it's the really no to be other as to there plan going margin health used into going longer that's

internal So would company nothing I than other say activity.

Gary Taylor

Okay, thank you.

Jeff Schwaneke

you. Thank

Operator

for question-and-answer over our the like conference Neidorff session. Michael remarks. back turn to concludes any I to This would closing

Michael Neidorff

Thank the good participation. looking reports, questions, day. Yes, a attention, a your start to for thank quarterly to strong and you you. your your forward off have and Day We're Investor future so

Operator

presentation. concluded. today's conference you has Thank now The attending for

disconnect. now You may

Centene (CNC) 23 Apr 192019 Q1 Earnings call transcript