CNC - Earnings call transcript Q3 2019

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Operator

Good day, and welcome to the Centene Corporation Third Quarter Earnings Conference Call. All participants will be in a 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 Elisa, you, morning, everyone. Thank for earnings results you joining us XXXX quarter third our conference on Thank call. and of Michael Neidorff, call, website Jeff President at and Officer which of Financial Chairman, President accessed and Schwaneke, Chief can also centene.com. Executive through this will host Centene Executive be Centene; Chief morning’s Officer our Vice

or by A be available in also (XXX) or centene.com, at (XXX) playback replay both shortly XXX-XXXX completion, number countries will dial-ins by U.S. the in XXX-XXXX. The Canada is and available dialing after the other dialing for call’s XXXXXXXX.

as that make and public by the may from those XX-Q the Centene Safe recent Any most of Securities result the expectations, remarks Form of February forward-looking these differ in materially under important provision Act XX-K XXXX may and of results Form Private discussed plans constitute those and Actual prospects factors, today Harbor purposes other indicated statements Litigation future dated for a SEC statements XXXX forward-looking Reform filings. about XXXX. including Centene’s filed XX, October various XX,

anticipates subsequent Centene will and cause that developments to estimates its events change.

company may some in any update Generally that’s future, measures. these elect forward-looking Principles point will disclaim so. statements obligation to we at specifically The do non-GAAP certain to the to call the refer While also Accepted Accounting

which XXXX centene.com release, most section. GAAP at can measures Investors press in also our comparable third with directly reconciliation of these quarter the the measures A be found available under our website is on

year-end XXXX in host City, reminder X, on on Investor will December Finally, its XXXX XX, Day Tuesday, call and that February its next York earnings XXXX. Centene a fourth quarter hold New Friday,

like over Michael Chairman, turn to and to With CEO, our call I’d that, Neidorff. Michael? President the

Michael Neidorff

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

WellCare. healthcare legislative of provide third environment, markets and Centene’s results the the We'll commentary update as provide and of an also products. call, our we discuss on as quarter well morning's will updates around During course acquisition this and on regulatory the

third with financials. me XXXX quarter Let begin the

third We and reflect our our the with strong delivered the Medicaid top enterprise. programs, diversified and benefits growth. our in are which healthcare marketplace pleased of quarter and business, contracts These demonstrate line bottom new results growth results,

Membership million at quarter end or This was XXXX. beneficiaries third an of over XXX,XXX quarter recipients. represents the XX.X increase X% of

to Third $XX year-over-year billion. quarter increased revenues XX%

Adjusted diluted to charge. year, related share diluted This non-cash third a last per of per to of all $X.XX share management medical goodwill $X.XX were write reported growth. $X.XX intangible earnings XXX year-over-year subsidiary. Virtually U.S. the impairment our same X% quarter the $X.XX. or compares The excludes period in representing assets million and down

The from items, XX.X% basis for year-over-year. representing quarter This XXX insurance, of of The increase carry Iowa third I of quarter. points points the benefited Pennsylvania, state health accounted by of quarter in remind increased The was operation. new year the a attributable quarter increase first in third the third HBR point number was by which basis increase impacted quarter-over-quarter. XXXX the and of XX the was of last Support of reconciliation the also points. by XXXX. HBRs The HBR moratorium Services their the an which third non-operational California XXX you basis In-Home basis in HBR this of XXX year-over-year. HBR New the XXX points to basis in basis payments points impact year XX was XXX quarter higher contracts reflects HBR California, directed at-risk, XXXX Mexico,

members with the the prior higher year as business. maximums. On reach a medical business Consistent marketplace normal marketplace as seasonality the is sequential our expenses more progresses, which primarily points, to basis, years, basis has the the XXX HBR of out-of-pocket increased attributable

directed also state at-risk, sequential mentioned to The of contributed this previous increase HBR. payments

markets into updates. and Moving product

Medicaid, First, New Pennsylvania. contracts new Mexico continues as Iowa, from business to and benefiting such grow our Medicaid

X% sequentially year-over-year million grew X% membership aggregate, and to In approximately approximately X.X recipients.

eligibility, Our process new partners and an redeterminations impact certain continue state can business in with rates. more lower caused have temporary ongoing revenue a as as We to on view cause enrollment as to by our HBR. redetermination states. tend appropriately offset the The than adverse these enrollment acuity a adjust headwinds levels work to we this our members issue

North Next, state Carolina. updates

the We are Carolina RFP, pleased North in of Centene in resulting an care North Carolina to managed of successful its Medicaid our Medicaid announce was appeal expansion contract.

area. additional Raleigh/Durham Our provider region, an led awarded was includes which Carolina the North subsidiary

addition be three Region Fayetteville the four care services and region Raleigh/Durham Wilmington areas. five region, now in of we will and Charlotte area, region regions; managed providing With this three area,

to XXXX, and includes According the year approximately new is beneficiaries the represent of covered This Medicaid to up years. regions of commence XX% additional total program. contract to data, stated under these to February expected three Xst two renew option

STAR+PLUS asset by state. CHIP later this and in our recognized sometime its month. announcement the expected The STAR reprocurement confident is We reprocurement remain and December. Texas, Texas are until value rescheduled that has performance

the our the using to remain have eliminate incumbents is protest contracts officer state. Louisiana, and We extensive review cautiously an reprocurement. appeal this Medicaid disruption and We is selected on emergency and we as process, appeal performed considering and the evaluation of not procurement the later the result, with filed anticipate with recent resolved. to state optimistic. been for it’s a member were disappointed the a scoring The a decision Louisiana, contract month, from in until

on Hampshire, reprocurement was we contract existing our an X, Care operations state. contract. Managed successful This commenced September the of New new under Medicaid a in

year-over-year. beneficiaries are marginally just is Hampshire, which New XX,XXX serving higher under in We now

a result At beneficiaries approximately by MMP decline across which a states. September star represents XX, rating. to Medicare is served This year-over-year and XX approximately Fidelis recipients, we of Now taken XX,XXX actions of XXX,XXX Medicare. planned four re-establish the

increased a membership On XXXX by sequential basis, recipients.

XXXX. star Further state to will XXXX new four expanding in year, we Next return in plan Nevada. into Centene on a states and rating parent existing one counties any MA

venture look four year, potential in begin next and another Ascension locations will to our with forward this developing We as engine. growth joint

with well the third business in quarter On marketplaces, to health continues the consistent our insurance the expectations. perform marketplace

approximately September we approximately This member experiencing At recipients. states. X.X are consistent year. represents This of the XX retention a is million we XX,XXX exchange higher this XX, across sequential with members decline served

Our continue to of within marketplace XX%. to be margins a range X %

of another expand operations of as the a we XXXX update We year footprint aim anticipate states. our an and in healthcare We environment. strong in products. on existing of national to regulatory the legislative I’ll as exchange now business grow provide our XX leader

legal of judge to blocked in housing at a [Indiscernible]. cards, the more rule This assistance. of the the this federal New utilized month, be We immigrants administration's Earlier and benefits will continue activity the they implementation if and in green will difficult York including certain expect the most to it state have obtain courts. public Medicaid make for level

term and which leading are quality provider related government against of pending to sponsored focused Fifth we and is the be Circuit for constant decision healthcare Mandate. our us. high demand remain vision healthcare. of at these the the Individual the In potential the monitoring will addition, the on growth issues, driver Care from Affordable we We for coverage to long Act, durable believe delivering affordable remain actively Even considering

this seeking focused have these an for states affordability. adding years, to plus We value access view an partner under be XX Centene regulatory as and environments. communities to on states. improve various to remained we innovative last opportunity the are Over Many with

regulators. billing, to couple policy a to of continue for We health surprise are focus such recognized A issues pharmaceutical are as and insurer makers work ensure costs, comments. and fee quick the and

previously low-single the composite our High This to higher expectations expectations, medical costs; eligibility outlook, previous that On Medicaid than they mentioned. expect redetermination the rate of to and in stable remain increases in due we digits. increase approximately with X.XX% is the with line mitigate levels higher our associated rate acuity for XXXX. slightly our X.XX% a I

the I all, approval New acquisition will update on two well and Illinois schedule. but states; WellCare. of provide The obtained Conditional now been have to go in Jersey. of is continues approvals ahead and process an

divestiture cooperatively milestone WellCare and work and a to agreement Anthem. process Missouri and in its Centene plans of sell signed to when important health continue an September, reached definitive Justice. Nebraska expeditiously with WellCare Department The the to Medicaid

engaged is targets. underway. ensure The comfortable smooth are combination. comprehensive and integration and We well seamless are planning doing accretion to a remain and work Both synergy extensive fully these of communicated with process previously our

believe, XXXX. to we transaction the necessary will continue receive approvals We of to close half all the first by

the Given be to of there an may close progress in activities opportunity earlier to XXXX. date,

my the comments XXXX higher assume which on fee. protested. like Note and that tax insurance the exclude acquisition, of to guidance. Louisiana return contract, some include the I’d a to They also the health being is WellCare comments currently due preliminary rate make Next,

XXXX per the S-X on our based adjusted planning are we to still with finalizing revenue earnings forecast to acquisition. our Form the in We for expect WellCare be diluted in included and process, but with consistent conjunction annual reviews date, filed share

As continue we against Day custom, details to XXXX strategy provide deliver in In our summary, December will is our Investor on markets be to downs the on rate government-sponsored allows we ups at us York performance. and guidance New full City. the absorb and leading healthcare Centene diversity and to The cycles, and scale the for vision of of enterprise XX provider. our subsidiary

simultaneously driving while is into M&A. growth organically both This, profitable

as recipients to our remains ability affordable quality will more states. access robust with and enhance than fair for blocks ample high The providers, for as well deliver compensation increase targeted pipeline opportunities. services Our WellCare provide acquisition to with shadings

our differentiators impact and on innovation investments technology remain remain key area. addition, we across our and capabilities of furthering In maximizing this enterprise, and our in the focused highly

benefits "Change RxAdvance our in Accessibility partnership number Centene recently their seven and Initiative. need a growing addresses pharmacy Fortune approaches I with the new particularly increasingly through announced to as for recognized World" in Medicaid. strategic List Provider management, Walgreens

on our growth in priorities enthusiastic transparency, are aims and cost. We outcomes on ahead. This model ultimately and result enhance to at remain opportunities about health the increase executing better experience focused customer lower innovative strategic

will for thank turn Jeff. you I now call continued your to Centene, over the and We interest

Jeff Schwaneke

you Michael good morning. Thank and

third some quarter highlights results. Let our me reiterate of

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

Total Salud and growth $XXX payments Arkansas, quarter our programs Marketplace approximately XXXX, Pennsylvania. the Health approximately in directed revenues by primarily Spain many new fee XXXX business, of was recorded and of and in grew in The result in moratorium premium and revenue. Ribera third partially the Mexico Illinois, in Iowa, over million state expansions California Insurance acquisition in the billion $X.X health particularly, XXXX states a at XXXX. insurer of New risk, growth offset in in This as

in parts the and quarter, There year-over-year XX.X% last third HBR Moving year last in on to this compared a that the was year's comparison. lot second non-operational of are health ratio moving in year in of quarter third are this in the affect HBR, nature the XXXX. benefits our XX.X% to quarter for and year XX.X% and

In We in releases, this was in order reconciliation reconciliation included to press this have expect in felt to important for quarter, provide understand don't more the changes our future an we release. HBR it quarter. clearly but

items by the one one. Let line explain me

third First, IHSS to quarter XXX in year. basis disclosed due we in that last points HBR the reconciliation benefited XXXX, the California the by

the Second, quarter HBR was points. accounts for by fee health insurance moratorium, the third basis XX XXXX which adversely affected

revenue for And a HBR recorded to administered of third affected are which These or payments payments million accounted as medical state premium by basis approximately but quarter are that directed points. premium XX HBR. payments had risk, close minimal XXX% the as adjustment. State payments expenses in finally, XXX adversely was and XXXX California, directed

items basis basis is primarily in quarter the Marketplace point increase due of previously of points second state payments mentioned. Sequentially, Health I aggregate, last third to the seasonality the change in of to the normal In quarter from the Insurance account HBR the year. directed this XXXX XXX XXX business for and these year the from

performance quick by due The redeterminations. a reductions provide the eligibility initiatives was Medicaid the in redeterminations. were me the eligibility were membership and network driven by HBR Improvements Medicaid Let flat and effective offset HBR update year-over-year. which the Medicaid to management on medical

the in an as We continued increase declines of in membership resulting acuity overall membership. of have result our remaining a redeterminations experienced

responded recognizing in a adjustments have rate timing difference states premium change with an there from HBR could While acuity, perspective. be the

premium and of Long with term, the relative subside membership. acuity to we to align expect the eligibility reductions our rates

members. marketplace. ended million as continues well, to quarter remains approximately Next, the perform strong, X.X membership marketplace The and with we business

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

SG&A. onto Now

“Veterans quarter basis ratio expense to administrative third decrease compared last of point quarter and general to third XX selling, our the this Affairs” in related last commitment contract Our reduction the year. recognized the in charitable primarily and X.X% year year XX% in was of to second by was X% XXXX. foundation the of driven and quarter Year-over-year our expiration

affected programs quarter our by was XXXX also benefited state directed lower ratio payments third from indexed for compensation The to performance. the costs variable and stock

we share costs expansion the spent Additionally, per diluted business during on third $X.XX quarter.

of of of third Medicaid positive home our remains goodwill time all part virtually expected included to non-cash cash management $XXX acquisition. share be forecasts. to During million than new population, management review care and quarterly the as help procedures, has our savings slower our shared part U.S. quarter, with and impairment of profitability the associated to we impact or penetration continues of our which the our model related important programs, the The short the of at but related recorded of revised assets our the information flow per identified programs, an The business diluted impairment, $X.XX medical was expectations into analysis intangible demonstration an business. fallen business and

third decrease related was is income year primarily Salud $XXX million balances during gain. second million our and higher million increase The to increased quarter. compared investment The $XX acquisition and last Investment $XX Ribera quarter sequential the to reflects year-over-year rates. interest last quarter,

with expense $XX October, In $XX refinancing compared and three a has for investments. to that securities interest rate million our of completed third transaction quarter. to costs, we term Term of maturity. was interest A aligns creates the floating debt the for million rate last our risk $XXX quarter our lowers and our our year, This WellCare short Interest Loan senior financing, XXXX XXXX demand a last million year

quarter. refinancing will a and including adjusted minutes. from premium share I are the transaction with in fourth These $XX guidance, our time discuss were One were excluded associated earnings costs the which call in per million incurred few the

with quarter for XXXX. the impairment, goodwill by the rate compared increase the health was The of impact moratorium. XX.X% of is the associated in the tax to third driven and effective by intangibles quarter year-over-year Our XX.X% third the non-deductibility fee insurer offset

a strong have We balance sheet.

non-recourse XXX had last excluding our on our borrowed credit and to Our basis XX.X% XX basis our was end, was debt, debt-to-capital days. payable quarter. year revolving from one last XX We from and ratio XXX quarter improving and day up facility, million points days from claims points

rate the basis. mid-XX continue range be a We to to expect on the DCP in run

Cash to representing Our was approximately in months driven the million nine times third operations flow was cash of X.X related net and partially in offset flow used the ended quarter, the risk earnings. $XX from by billion $X.X payment minimum MLR adjustment to net programs, CMS earnings. by the $X billion XXXX

get the let guidance, few acquisition. I updated on comments me into make our WellCare Before a

date, the the significant we progress to made We to communicated. regulatory that the targets planning. are and comfortable with performed work progress the the have on and and accretion pleased have Based on approval we previously integration with continue be synergy

will on the provide closing we we date, As closer through complete integration a acquisition. and get the the planning to continue update

increase This, or Term the disclosed of repurchase company's provides yesterday, new the A to company, board transaction the repurchase the the together debt related with either net directors to million our repay WellCare stock proceeds program. flexibility $XXX divestitures. to as equity a approved Additionally, to with loan

Now on to XXXX guidance.

in the updating be costs to the fourth share charge, and earnings are that and rate reflect impairment incurred per refinancing our We our GAAP would diluted the tax quarter.

tax used. adjusted rate, The are can guidance remaining included previous in this be and release. the earnings range an metrics For are guidance morning's unchanged still

the revenues, the quick of previously be directed expect fourth revenues a as third we mentioned. lower note, to XXXX payments state total quarter our than One quarter result

for remain full numbers unchanged. headline year Our the

a and minutes discuss XXXX. me Let few take

This includes includes expect total This the share billion statement, and per of share will his adjusted range an in the adjusted filed encompass per guidance diluted mentioned with course comments, excludes filing. revenues with WellCare in for $X.XX earnings in to and of in we registration XXXX excess the diluted and As earnings total acquisition. be what revenues acquisition. that the was which associated was Louisiana $XX line Michael in SX WellCare

the the quarter, progress approval, WellCare we continued were and with pleased the transaction. on during the and planning integration associated performance the with Overall, regulatory

We are fourth with positive momentum. quarter the entering

our of ahead line focused top diversification the and against on at executing and Looking completing strategy, next remain growth, growth WellCare. both on successfully we bottom year, delivering and integration

operator, may remarks. questions. my concludes That And you line open now for the

Operator

Thank you.

We will ahead. now Our Instructions] Borsch comes begin Capital Please Market. with from the [Operator question question-and-answer BMO go session. first today Matt

Matt Borsch

reference the with could the about I you you S-X If for Yes. forecast -- just XXXX. ask to

Street where before million, pointing million. not So it I is that ones The are on can to is don't. ones know you're include parts on to estimates, But guys WellCare. looks Street give the which you impact answerable view like us and at the of moving on point? a that know WellCare $XXX you basis I course stand-alone your of estimate color influence XXXX don't and more any which $XXX this the

Michael Neidorff

commented And it's I insurer baseline just that fee that the in I the of We've everybody for bit We XXXX. in tax as return carryover obviously Obviously not his into has save tax comes the when the so our going Michael headwinds mentioned a the redetermination on XX% go Day I rate, the I prepared Yes. have things. think membership. in and today would the typically think highlighted remarks, all about also and here. usually Investor back, say of little We're would December. We've a a to a health mean, couple reductions tailwinds. effect through historically rate. that

numbers broader to the XXXX, update Day. our that give is we'll what and comfortable takes So update, December on still stages we would I say And planning Investor say puts we get a our early when communicated the an you the would of know and guess, for we're today in I with I we're process.

Jeff Schwaneke

I might because the point, to I not it and get Matt December ahead case we to that just, at meeting. together, ourselves, into this the we it's think, beginning XXth just we thoughtful was we when -- baseline. add careful And always that and on very of I put in be as great good it then really look a want go detail

which at as can we a so, we And that can build. baseline, look which from

Matt Borsch

it. Got you. Makes sense. it. Thank Got

Operator

ahead. today question from Please Raskin next with Nephron. go The comes Josh

Josh Raskin

Hi. Thanks. Good morning.

one seems I question, of new First And and Ed, for and Centene. relatively the a be to in to there catalyst foremost, idea first for luck. buyback, good congrats be my the guess the terms would

You the the grossy. What guys being may have be sort to the closing was decision decide, the been reticent just in of of now may commentary WellCare that sooner What -- in be expected? light some of coming so coming catalyst? past could, okay, especially we than was the

Jeff Schwaneke

Well and for a one, have we out, we with issue stock, WellCare treat separate there's I we’ll a of operations, couple buyback the think, factors; of pointed a lots capital. our as our as correctly in you which cash from be ongoing of as deal, that applications

that's isolated business, this -- on receive separately treating the to of very appropriate from just separate really, things this and will day-to-day opportunity. the seen saying what just we're the the deal, and part degree it very case nature, we as accretion, buyback minimal some it's on and because the that as -- So ongoing treat of help start peaking

some reduce it And to may debt. we of use

of make at a lot sense. the it using also is the financial -- seems buy at trading good to that stock back the add also might I So levels to now

and think I it or was will. have said, I I always you somebody hope, we

it makes Josh. sense, So just

Josh Raskin

All one I our someone knew read knew, notes. I right. of

Michael Neidorff

Okay.

Josh Raskin

-- just high the like about some even guidance, that, quarter, imply the so points up an MLR the XX impacted and up on fourth that's basis headwinds say year-to-date basis of you MLR only basis. XXX-ish are because got the points, or year-over-year running I end and guys you've that would that It was at things a

that more should in improves end sort what to be we've range provided? higher of to seen but have you that year-to-date, -- what's about guidance, thinking So XQ relative we the the guys MLR and

Jeff Schwaneke

Yes. Yes.

couple. you a following I'm Josh. I'm, Just there,

would have some year. new started mention things. think other obviously in that would one I this new of some couple started We be in did programs Iowa. that programs a I

year And so a the year. LTSS the usually start for by at beginning those, those that of time the you year the HBR by know time. And of at the end Pennsylvania we for example, to you full get know we've almost the out higher had

like would fourth things have, the are improvements I a there that say quarter seasonality and So perspective. in business from new that, a

that So unique last And unique -- I year problem at I think think we is we to. looking items. items. last this you compared know some would those are year year had the I the some to we've with that, point This year, have things

where is difficult So to didn't progression. I again the it guidance get now. we it's earnings we're But, range, our of kind right and change think comfortable

Michael Neidorff

one like I'd to add just fact.

-- could. you recall, study. costs I of we want incremental just numbers prepared the change comments basis -- my comments, I state points And XXX I new absorbed the through As associated those in with that went in within the what reemphasize to

it going way looking always ratio medical you I you putting And a you're under of three higher our remember business much things two, first, though will is longer a the think new even assumed -- like care control. very so put while back start when long-term loss the quarters, some XX% we

states can't new care; business, they out programs have you some you the And you when that remind a I also continuity take way. new on implement and

impacted. So Josh there's was that within MLR. that absorbed All things like that stated the

Josh Raskin

Thanks. right. All Perfect.

Operator

Deutsche The today Bank. from comes Please go Hill with next George question ahead.

GeorgeHill

in in RxAdvance guys. how new Good the what's Walgreens? you've about different into kind question. dig relationship our Walgreens announcement of wanted pharmacy. I bit a guess, a can and talk about morning, different with I angle, the little increased your their for the I on Thanks taking on much stake guess you to recent

Michael Neidorff

want you that? Jeff, about to talk

Jeff Schwaneke

George. Sure,

investment We few RxAdvance steps really a we the had along made way. think, contemplated different initially. I the

getting kind work think the of into and the that but I of so, really we're doing the a its so specifics. one representative nominal is we together. I increased momentum, lot the think trajectory year this And amount, the are We step of and

Walgreens may we we Day that different we Investor the think, one. in of on identifying Partnership a work when I terms few And the categories, retail our some have the was -- Enterprise front about of doing recall had talked relationship, we're you in to June,

referenced see opportunities his And the meaningful as on transparency of consumer ongoing the to at so, comments and to in Michael relates pharmacy it some that and principally for engage we level. Medicaid things enhanced retail engagement opportunities population, for then experience

Michael Neidorff

with there And I emphasize, inner to cities a want are and has pharmacy and have where areas, Walgreens urban a large done various the that is outlets it particularly good in in job for population. we recognized

with working relationships the large are added other so, And retail closely while an them outlets. maintaining is plus, still with

GeorgeHill

I then, to networks process follow maybe So is just tighter alignment or about around really how we should the in if and quick of a think any there direction, get the a this pharmacy? kind change can actual is up reimbursement

Michael Neidorff

prepared because we're area, them I price. stated ahead in is time goal said a with takes move get there direction. right other that a It's straight We’ll lot myself, things moving of but try you get they I line, capabilities a it's to and historically, working and towards on working but of not have as I'm that net certain process and in think, the always to a not have are it and amount I've to such. these still but, be our of it. partners

GeorgeHill

you. Thank

Operator

from go with Please comes Scott ahead. today question Stephens. Fidel next The

Scott Fidel

as the XXXX to the which And more are of best of of just the first Kroll we being Thanks. Mr. dynamics, my morning sort should And well. Can would wishes that impact of question program all to to you this want just new some that deal first related insights. of initial on included include guidance? not you the clarify, add the or announced just the sort buyback consider just in WellCare that is,

Jeff Schwaneke

the be dynamics, the in deal would which not are That related real. That's to guidance. WellCare

Scott Fidel

WellCare Centene can now generally terms saw that talk just star's be for just influences about for clarify, combined are terms the you maybe stars that WellCare and for the you will feel you just and views can, wanted Also that lower reiterating see the can you and take of inclusive a in on in that synergy your Then sort of that if views can of XXXX, on in think would XXXX more then also know maybe that you your results on Okay. views, synergy you WellCare. to and offset of the the and growth mitigation that if you know how your prospects company? actions of you you some assessment that and

Michael Neidorff

Brandy comment ask and to I’ll on it. Kevin

Brandy Burkhalter

plans So -- rating, of made we in one largest this star from star, star our of four to and quality achieved, perspective, sort current the We've a start progress plans our with out a two a programs star our a significant year. is had and four half rating.

differences miss when of make rating, but we said, that that by can a to remain overtime. which the perspective with Although from believe our we we all November. points X.X less it and this, in to our estimate we a parent than we'll finalize initiatives, made We premium see quality progress, one state any might overall has committed sort impacted comes up

seeing to related Kevin, And forward the the anything you want look to… in to add future. So results

Kevin Counihan

it, we said, said, to it. we what We on than less getting need as did it fix to just We Well, and actually it. I expect did think points were Brandy correct be X do to know we'll away we we four. basis from track

Scott Fidel

of star’s Jeff, impact be for And of the exclusive synergy that would that on reiteration XXXX? WellCare that, it. to the or Jeff clarify view inclusive Got just the just

Jeff Schwaneke

going that. comments would Yes. hold I WellCare about mean, stars I at comment I'm still given say, specifically the on what to not I synergy this would point, but know

Scott Fidel

you. Thank Okay.

Operator

James ahead. Sarah with today question from next comes The Jaffray. go Piper Please

Sarah James

Thank and congratulations you, to Ed.

certainly missed. You'll be

announced than our in certainly that XXX package I it expectations. not Ford you divestiture of deal, the aren't Georgia wondering, that guys divestitures of I'm contemplated certain divestitures your came amount assuming the in to went better that initially you when how about into a out guidance. talked synergy fact just and synergies, million So was and The there compare years.

Michael Neidorff

going see you to on consistent but expectations, say this me of let not a flexible -- -- I let's in working made that be we're to think press, I still will speak. in some But to we have here not say some to. very whole with with of issues a assumptions couple a have, that others; because through never we been staying trying you're seem what lot think, of point I'm so whole light. careful can't that may may I and the justice just thing to it's get have and lot that but, say appropriate, hope think be details states, you I to divestitures we're and into -- the I'm I that, you there reasonable more don't not Well negotiate say. understand I’m type some on bright of

Sarah James

to be? there'd be how some Fair you talked enough. TRICARE we up, follow meaningful potential absolutely. so, then is conversion and you maybe certainty TRICARE there follow to guys little And wanted last and to update back thought left a the just that bit where conversion, in on potential three that risk, months up the any thought and could Yes, just quarter or of so about wanted

Kevin Counihan

it's Sarah, Kevin. Hi

technology right deepen. our in actually access variety with program. continue enhancements the on and We're midst of consulting them with So relationships of and a TRICARE the quality, now to of types to

established probably already. You're who director there BHA we’ve Lieutenant General Ron place, with aware new relationship of there's that a and a

program. about And of the so future we're the enthusiastic

Sarah James

you. Thank

Operator

today ahead. question Please Lance from go of comes next Wilkes Bernstein. The

Lance Wilkes

Yes. And congratulations, Ed. Good morning.

Kevin Counihan

morning. Good

Lance Wilkes

into that as some trying existing question PBM looking might RxAdvance you and understand of book the my impacts business, with and to know and play how on of at the business, really relationships activities PBMs state that? changing they're of is kind how So

Kevin Counihan

start that. and we want I’ll something. Jeff with agree transparency, will think the I states But Well, add and

action. We mean, have and states into already I met more of more have moved many transparency. maybe exceeded and so will expectations their

in I will the they only moves great. some think, systems RxAdvance us opportunity, that that and direction of have and that enhance some it's so and information of

unique platform. a have they now So,

very think I we're helpful.

That'll in administrative how transparency, So many the pile-around. they're that when have same peers to about speak, involved rates worried will you of and fees really are people the multiple be so and

think doing a it it's and fair I and So we’re that, with request very clarifying openly. we're

Lance Wilkes

a to follow-up And that larger second re-determination, more were in just of impact, of was you contrasting quarter was it in could the Or about able line quarter? overcome third the impact that the just in you. the second third re-verification, bit a magnitude maybe Got on quarter MLR? you quarter, little with sort with talk one

Michael Neidorff

with it but the an it’s Well, of has to realized here really but acuity, the the worked there. I'll details, on the – states important overtime, couple the and are something that’s interpretation pace there's is start a what's consistency. are speak is more this, in adjustment. and states And impact it's of with, Jeff? can about they're certain us lag realized has a I Jeff so think and that it been itself. it And of we’ve working There a on states a rate then

Jeff Schwaneke

by that say would the the in seen it's I out be essentially thing – quarter, at Lance, it’s is, it's Medicaid state. Yes. you state, is say depends, our from award And other different it the this, if by consistent. QX. would new you so just off-the-cuff back to different flat look third that we've membership is in I what and right? aggregating And I if but guess, then is So just total note Iowa,

Michael Neidorff

want states to expand are here, to I coverage. also emphasize looking

Medicaid care. the looking coverage. increasing at looking we're long-term We're So

the we -- growing see their think business. delivering expectations I on in strong we most we're viable and So, very it sort cases think of

Lance Wilkes

Okay. Thanks Jeff.

Operator

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

Kevin Fischbeck

Maybe you're I or we rates kind of state’s in think redeterminations. that adjusting of just process, of guess, in Great. process way? Thanks. would the the early Are around kind in rates? along of the well up kind that we you still state on What the following

Michael Neidorff

to… want you Jeff, think, I

Jeff Schwaneke

Yes. when No, in and they're from months adjustments the I a this I a rate rate when really say difference say comes we're what I would that's to guess obviously, and but There what that's difference. more if they're see in think the been the ago, the to adjustment timing seeing really timing done. plan the HBR. quick states And is right? but there quick is, to continues we're – I continue And to so, from not would happens but data have data then we taking action, on they're acting have act, is

Michael Neidorff

but wish, I time competitive time plans, more the to have need Whoever that's real-time get that us, some then data the and If and they too. take that we helping data. data sound real a from collective gives all so

it’s necessary So a fast do a information to its the just so. time, as process and and point states it it and trying to in think it's not some things accelerate I recognize moving

Kevin Fischbeck

back repurchase. process for you these of to share going Okay. can that proceed and divestitures And the some then,

divestitures, little to You a whether would to pro if forma guys or you share how that we assumed those some to going transaction these this about proceeds should of proceeds guidance. use in repo signals leverage you're guidance mentioned I to have after be to bit thinking may for willing you're due assume you're from divestiture be the that higher assumed your that? have divestitures kind trying understand

Jeff Schwaneke

Yes.

to I we up think as think positioned optionality, it way have ourselves to the about now right.

which without I in the optionality penalty So there we divestitures do we've two put the a proceeds. loan here A can at just the term and position think have and we of the we today, we've repurchase and all time key between But economic company know we transaction at the that that that announced to already now would share is with the that what factors just then to increase obviously and a the if look there's closes the including when we decision. make are prepay

Kevin Fischbeck

change the earlier, to start is to to closes, evaluation My come guess there's proceeds going you're any wait your proceeds compelling. the exercise, before so to if those thought it. to I better, the in mean, you'd the about have when be In is evaluation pretty using today able those market point the for deal will because to

Michael Neidorff

I you're hope, right.

Kevin Fischbeck

Obviously everything and yes. Typically a the simultaneously we'll factors at the we'll decision. economic the -- time that just to at the way transaction closing. have look look is at happen Again, make and divestitures these work it with

Kevin Fischbeck

impairment the than a earnings I that mean, to The implies just last And are question. be that what big lower run pretty from -- maybe business impairment charge going then great. rate thought. Okay you charge for obviously U.S. and I'm

your guidance as XXXX reaffirming the you're S-X far for guess goes. I as know, You

understand is offset be may there in better of impact what to to the try kind what is So that. coming

Michael Neidorff

this the up. It's Kevin, recognize in an over let It impairment large -- years so been that all we've me in enterprise of forward is been start, business, and pick -- recognized when and Things then come Jeff immediately confirmed. we necessary I that it can and don't we at time. committed be charges. dramatic when you overly as can see the in as haven't happen, the in we you're had many many quickly can size that point have point our you, it at with the we analyst something us as can scale it to time, as expect investors

-- it's money. we was probably a large these this So It's you happen size the the just number, a company. of could it it's non-cash consider things of kinds total expect are and creatively and I our when personally of lot it's how are, acquisitive the

Jeff Schwaneke

magnitude thing I'd really a other Yes it’s issue. highlight, the Kevin,

savings. the mentioned million of we is size at the say. we If it's roughly revenue USMM you that quarter, the in let's this piece missing And were this shared the XXX look business,

expected, got Savings in And so the this we look we at of XX. shared which if half Program, is savings million was we quarter, what it roughly you $XX Shared expected

XXXX, say. would it's I so issue And as all as magnitude a you look to

Michael Neidorff

CMS what that shared beside will redeterminant the year savings, the not. amount every and In what

Jeffrey Schwaneke

the adjust year. baselines every They

Kevin Fischbeck

you. Thank Okay.

Operator

today next from Charles Please The Cowen. ahead. with go question Rhyee comes

Charles Rhyee

-- speak or And to came kind you congrats If does problem of with Michael. as done of structured the more and savings move be half maybe talked does that you sort just that Maybe Yes. shift follow-up programs, on to to pace this Ed, about shared the can fundamental -- were a What of sort kind the kind long? a [ph] say Thanks. here? of that, the to actually about care for well. value-based baseline what is that sells these in moving around. Is that of expecting

I mean to net to make shift moving of this more to point of you challenges of kind what a overall -- drug us kind on the Overall, pricing your Maybe talk reimbursement it of model of we're a type sense about examples kind trying across and trying of like But what's seems can healthcare. side. value-based we're some the you toward these here. changed? views give

Michael Neidorff

baselines. We work. to Sure. pharmacies others, you hospitals, doing we're how One, question. provider going something of in control. set set the program. and glad value-based the that's raised that's We Yes. our I'm with it's your groups, doctors determine We

one a We model our program. that have is

before how We against doctors they have than different a be virtually that they're the can things. and show real reporting how time peers should doing of their the lot

of USMM, was that The something this case CMS. determined the by -- in is

Now as costs think think scheme in helped and the Medicare grand has our be legs It's that it's, I things, still other program will I of and important. save worthwhile. has even grows more in a Medicare some business

that I deal such -- small of say we've total a a comfort But portion of become. it's great we can with enterprise because this can

major that that absorbable set it's it's we it's that and and contracting against. emphasize thing. report up from the enough not so And value-based But determine I very distinct, can't

Charles Rhyee

say, you lower compensation on expense. can stock adjusted up the helpful. SG&A. in magnitude sort And of lower partly I due was to a That's relative Thanks. Thanks. sense follow maybe what guys maybe get for It one you of if for -- was you year? give this of can question, Jeff, let's Maybe about expected here sort talked would next of a about as share the flat sense price the to or if we either Just of think baseline rest sort a sort modeling trying have year year-over-year?

Jeffrey Schwaneke

these because built a less a and are effect. long-term probably over period, have $X.XX plans to it's is you quarter one three-year are that share mostly would a long-term it's obviously remember than say, what say -- I just I'd Yes.

I make would it. So

QX have year. from roughly G&A the to then the really factor basis this off G&A look if And million XX of the $XXX the stepping that's point at points revenue, looking of ratio. you additional on in ratio, you're If at you

of kind from where bridges QX we which that So the in are is you to QX. X.X%,

Charles Rhyee

you. Okay, great. Thank

Operator

ahead. with The go today Jefferies. question Dave next comes from Windley Please

Dave Windley

things. couple Thanks In the size didn't you to MLR get the was if can what call of a -- bridge, an other? important extra Hi. extra question. XX Or is I year. this of I day business wondered, the call in wondering quarter it third out think out it of day the taking you that? for and an that a I'm in points is business than bigger the basis I maybe

rates. you're And working are question then the points earlier XX following state on to on have that Is redeterminations on stale lifting kind responding, in kind but data? states been you of possible said in pretty of that the composite basis up gotten, expeditious kind of it to your rate Is are you of still inning or get? what some you how all do giving hoping reflective just some you you and and how stage have much we, the essentially half giving much like, understand the states left have

Michael Neidorff

that a others, one, pick Jeff, pick mean it's I so you has, first some pattern the has second rate up that take the I'll really redetermination, up they there that a is may can't a -- take question. state The point and that to It's and I for adjustments, you back not to episodic it's kind us. very the quick it. than it it's part, -- getting to larger not every the are you. it's and did have larger doesn't be staggered, I'll rhythm not of -- and state specific

-- it's no is pattern to it. So there set

Jeffrey Schwaneke

respect on That's other your just first question correct. thing, Dave, to And then the Yes. -- with

Dave Windley

day. business Extra

Jeffrey Schwaneke

would would business I so the extra Yes, there extra forecasting We an at year. say quarter. we our have in is, the for we I I would what day day. that. of was -- mean, account in the business beginning that the guess yes, process

it then the these are results, the they were. But day. that included better than have case, would so nonetheless, been if actual probably weren't so business results And our

Michael Neidorff

Yes.

Dave Windley

those your Medicaid views in around are one related like just Medicaid could couple the lawsuits to If on the requirements views more. and in or Michael, work programs that? of state Medicaid structure states, important are sneak waiver term I things program longer to and a

Michael Neidorff

No.

the We've how trying various deal a I -- -- no work to we to work it's some not responsible states we're does impact way. support. with a a a have it find And -- mean on the I do us. that states I is manner. adapt -- programs, with-in. and to something in think learned so and supportive most we mean, so with it's in significant There we

Dave Windley

you. Thank Great.

Operator

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

Peter Costa

Thanks, and good luck, Ed.

that, this adjusted you're $X.XX broad quite the guidance midpoint above where to still of XXXX. still is for Your for EPS at take you're guidance $X.XX $X.XX. year be I If S-X would

talked you being year, well? talking well you as this not you're for the ahead Why about year, the and right about ahead running are So of next $X.XX being number. X% yet is in sort next year

Michael Neidorff

want I a as want and to to open come, just established But up by that that baseline. comment. Jeff I we saying we

down full will up I think the at and we issues like on various bridges the all and otherwise will it. recognize you we we're XXth. abundance dealing going with the reasons There give into are an we of conservatism guidance

Jeff?

Jeffrey Schwaneke

go Yes. billion, at at the almost The roughly S-X look we're it billion. the point number, and was if would look and at thing $XX and to back Peter, revenue you I $XX

longer member that those phenomenons would staying concluded marketplace open which this good. the growth kind and additional year marketplace remember, part is all say of Now I enrollment was on the line year, first that of and are this the it causing in top

next to billion And look as $XX still plus projecting right year, we're we now that to around be range.

that difference the you're that's I think So for. looking

additional guidance we the the increased year, the because earnings earlier on our increased we've year-end this recall, membership. XXXX of marketplace call, you guidance If actually

Peter Costa

So hopefully about exchange growing the you've next talked business year.

should be or? so is about, it thinking Louisiana So your line to we is that headwind the what top

Jeffrey Schwaneke

we is talked of that Louisiana redeterminations said is the in, remember eligibility about we part Because, and it we No. today.

a seen have certainly a effect that and of But obviously that So wise. of have a year. from percentage lot you as guys exiting this as perspective run it, far is on the commented you rate headwind

Michael Neidorff

think, trying I to results. we're get head

a sense baseline whole of try a marketplace, at an will on things. cadence series redetermination, rates, safe better we'll about. to have on with served position, the do mean, have not better a be you sense a to XXth, Now you But give I we'll purpose. on what's of of to we give a we'll better to sense we think where indication, we've a lot

and I'm couple not sure. very, of our is It's XX, own to well and run of on meeting, still ahead through why, try it get months very away. December so And a which ourselves,

Peter Costa

Okay.

last USMM and Just anything this year there year that. rate than that? is else impacting the or on it issue bigger home Is the health, next is of cuts because

Jeffrey Schwaneke

year-over-year. it expect I to would No. be flat

Peter Costa

you. Thank

Operator

from Steve question with Sachs. next ahead. Please Goldman go comes Tanal The

Stephen Tanal

morning, Good guys.

Michael Neidorff

Good morning.

Stephen Tanal

And well. Two questions congrats, as me. Ed, from

a the Centene Just presumably filed but Had in I us works that forward? Centene S-X, in XXXX more of but know that factored earlier. more the had that you on in June, on the about but you simple May, question. outlook forward in the told in -- one

understand number if that in kind the that's to of there. I So contemplated want was just

Jeffrey Schwaneke

the as use talked we think Centene continuing contemplated to forward about and in before we're kind reinvest to business. I that is of

and efficiencies. And working $X.X that's we're on these are so there billion -- heavier longer continue just we to get of some the that realize is process plan, they a the and reinvest, to to time automation they're take and of lifts as the to and things savings digitization,

now So but Centene is right would I forward, includes the that say benefit minimal.

Stephen Tanal

enough. fair Okay,

Jeffrey Schwaneke

Investor Day. on But December more come our to

Stephen Tanal

more maybe nature the it you I wasn't bps Medicaid. what that. XXXX? on It a in then And And payments you of XX back on the on on very catalogue, XQ could taken just expect to that? point would us specifically, like HBR, little Yes, that is. kind just perfectly at-risk was in to sounds clear give get of

Jeffrey Schwaneke

we have process a they so changing is up risk have that was expense. couple and where process tax recorded states payments What is we The is and revenue I where providers, used a changes. one-for-one tax is some where and retroactive they to turn of give form would changing cash in pay the to and these have would premium these of and Yes, say and the things. to us premium those premium around show

payments we lines but as California. I lumpy, that as mean -- Especially happen they're this of you've the right. in level more I And the our in so less as seen very would premium these would other not revenue. continue, probably of you'll is, just But large say what probably and see they're anticipate states, on would pass -- they're through

Stephen Tanal

in so assume suppose that baseline XXXX? XX just like a wouldn't you get model go XQ, And new bps I your it's back you and in like

Jeffrey Schwaneke

level right. That's these next would types in anticipate year. We similar payments of a of

Stephen Tanal

Got it.

Okay. you. All right. Thank

Operator

Suisse. comes today Rice ahead. question with next from Please go Your Credit A.J.

A.J. Rice

too. I adjustments. get Hello, When time I little outlook if is covered here. premium coming everybody. wishes Best better, it would states for to a quick out year Ed it increases to could in it. obviously things obviously HIF was and you wondering couple A last in be came you of gave and next and -- pointed back the rate they mainly the the rate said

on any states reason You why rates just excluding you not of part that Is as didn't little the the mention of be might include really Are higher. part a that? there to that? movement the

interesting beast. just exchange comfortable an of feeling the compensated back get coming on sort HIF exchange your just you I year next well? And on that then Are can also for business as you the

Michael Neidorff

Jeff?

Jeffrey Schwaneke

couple Yes. A of things.

skilled that the of what On be is schedule and I this pass-throughs. clear, think and about just the -- we've composite quote Medicaid before, to net commented fee call we rate changes we side, adjustment would fee

to Michael today health that commented than a as always then been. up for this then rate that's the add rate, from has and the pass-through specific composite business, is on the a grossed tax the effect, insurer and fee predominantly it's So Medicaid excluded

actually the that's included the health in marketplace, The second we thing the for price on insurer pricing. fee, so

A.J. Rice

another then on quick And Fidelis. Okay. one on

G&A expectation get know was MLR online; quite that low the synergies. have thought benefit -- there the with more or their pretty and all Obviously, playing especially this came normalized that this parts, when moving you might there at to out, point, is MLR down. room still creep You their just MLR you up, on anniversary high; quarter. go? was the is Can on Fidelis that I much today, that bringing over time you from that quite the was but some their was

Jeffrey Schwaneke

Dave I say which Yes. could the he around I'll transaction would played Thomas is first yes, really the about the here, talk it is then out. future. and part, handle has

and So I say medical and line, we have the SG&A seen would dollars. we revenue did add cost meaningful improvement in

that down seen to increase the investments and we improve the G&A, So revenue bring happened. what which a cost we have and medical slight performance, is has in anticipated making

as it what's remaining far I'll as Dave. to go, turn And over to

David Thomas

Yes. is Thomas. Dave This

more I real said, said, this estate can synergies. As very done our that with I us are management to do well There been think successful Jeff is we've for doing think more from a there being is and We've point. we That medical there. very, front. do

We also are continuing as we not to quickly plan, as been albeit the historically. had growing grow

So tamped terms both and well. we as and of continuing to to in perspective the management from continue look down very grow good revenue a plan grow to continuing medical

Michael Neidorff

that it one I'll think, in I do we the afternoon. the more was I'd and I like to said remind if Investor morning in time define Fidelis, one you, in Day

A.J. Rice

give months to focus sure term Kentucky, one could. six call, Texas it's comment. happening bidding looks is slip so mean, on wonder are have now? there XX that RFP you been a to -- like lot I more update term in, us that over to the one. that other any on other guess much of you Since RFPs right the I'm if could has you're I what that next RFP. not with If there history going haven't heard remember I'm intermediate I I than I what's focus late them. with near which I Obviously the are and now But on right there in months. pipeline a

Michael Neidorff

just Pennsylvania one it. wanted of a there's out; redoing I times do couple mean we in came of to

So is is to one. we have that one. Oklahoma looking there at subsidiary And

with they -- I they're states and do have It's -- yet, I'm see, a said we announced haven't think I may going pipeline opportunities. are to conversations and to. to. still -- So appropriate But I going we they mean but them it, robust not in it's it's said so for as it

-- just you mentioned those latitudes. two two not real, give it's sense you gave just I a I just to

A.J. Rice

Right.

Michael Neidorff

Next, anymore?

Operator

Please from Justin The go Lake ahead. Research. next comes with question today Wolfe

Justin Lake

morning. Good Thanks.

Michael Neidorff

morning. Good

Justin Lake

-- to I congrats your Ed. again appreciate and

and So this helpful -- first asked the large? given questions do it year to Should us how I quarter the some us thinking the or think how end around might an where you're the it. fourth into of about toward to get you're XX.X% XX.X%, I of the the give really question, the But on and shaped a expected to to be up help earlier, you just didn't MLR, has that it guidance idea of Josh within be range you give toward that be understand midpoint? just the of range higher just

Jeffrey Schwaneke

why I guess would that give Yes. mean I HBR. range, I -- -- a Justin, that's we on mean, the

So pick if would the the number defeat that I we've -- purpose of you know of the that kind range.

the with only where guess So it And comment is. again, I comfortable that's on range think we're I that. my

Michael Neidorff

come many It's There season the there effective what to going that nobody is Yes, is I'm to with what range. said, said that's a is because things so to I and let's into Jeff going flu like. range, there are want really just look – I -- an important, -- yet think it Justin. -- is support place

Justin Lake

and competitive Got it. but business you feel yet, to looks CMS, individual of that next of just how of and then if a is terms thinking would year? put in kind -- your positioning out about finally kind into going -- like file And in I had I terms was the point it margin of for through membership market XXXX they you to chance landscape anything today. in haven't it go wondering, there

Michael Neidorff

when get and you you categories. that type this situation, it, looked at we that because I one you tell in really does point. like the growing -- grows ourselves talked, player, it something. we've it I And competition at closely in would we've don't know better. When you have phase, [Indiscernible] that number this a – player usually in if of the larger But

it will -- market. So I and us better just help competition. makes That I see grow like it the we think it is

Justin Lake

Got it. Thank you.

Operator

comes The ahead. Stanley. Please next Morgan today Goldwasser of question go Ricky from

Ricky Goldwasser

morning. Good Hi. Yes.

Michael Neidorff

Good morning.

Ricky Goldwasser

here. of follow-up couple A questions

the what RFP about light give us should partnership. of could think PBM, on the your just process? So one, update WellCare, you -- status in of we the How it

Michael Neidorff

very at company I -- cannot on publicly we comment WellCare I in we -- Yes. business involved get just point so can't this can't still -- we It's a that. in time. traded, independent

Ricky Goldwasser

give Okay. color -- Will you Analyst any the I under you will would. the provide additional past you PBM, RFP Day? know you on process said in

Michael Neidorff

understand. I So

Jeffrey Schwaneke

There No. We separate the WellCare on comment are closes. until transaction the can't a business company, stand-alone. really

Ricky Goldwasser

higher Okay. I $X.XX you're question regarding And tax another Louisiana XXXX. but the said you rate. S-X, a is unchanged, about When also that think we then the know in assuming

So you the about included it? that provided original rate as was had EPS, you in tax embedded the assumptions higher we think the when back

Jeffrey Schwaneke

fee. the result Yes, was. Yes. insurer it direct a of It's health

Ricky Goldwasser

Thank great. Okay, you.

Michael Neidorff

you. Thank

Operator

The today JPMorgan. with from Taylor Please next comes ahead. Gary go question

Gary Taylor

Good Hi. morning.

a Just quick few ones.

The first to just but would there? briefly, do on Michael, the be Fifth Circuit you of wondering, any timing that alluded sense have you

Michael Neidorff

would mean imminent, but not -- I it's to today. say I it's No. like Yes.

Supreme [Indiscernible] we And will be believe sure. have and I come we in get get presidents they imminent point that it's It I say But reverse Court that somebody define reversed. changed not view. if to will don't, go not I'm But RFP to. quickly. the better. won't our so down. the we’re much to of it I to not think it going hold have [Indiscernible] will Texas So they If to

about. overhang something It's people's not mind. and worrying terms in an So we it's spend time any

be. So resolved as we as soon all get the happy will and reverse, we

Gary Taylor

about you. XXXX talked outlook much and but don't Got impact most common Is questions whether you bit, competition investor have the on mean you might exchange exchanges, increased premiums of bit. a margins? is, Day, about lower are at I one a little the about to your have Probably there XXXX anything that little the this how have talked on willing and say point? to exchanges Investor pre-empt margin this you

Michael Neidorff

point think in at this time anything have. premature what to I we say it's

past comfortable with I've doesn't business. we're be in moves Jeff's to think it's going it where the at margin commented meetings nearly I on mean still depending of of with us. comment XX% X.X% it a as in that -- And the various X% growing our range see that viable and for we're comfortable kind a we issues. up as year and time range the that business still But down to very various and

know to manage we well. and how manage So

Gary Taylor

I if could. question Last

you charge the On Do had go have for Is the demonstrate issued. apply But to you an rule that you does rate not believe or any the redetermination, might that the adjustments that states of rule was dynamic even reason fear public XXXX impact? obviously, the and these from adverse public why might in adverse drive selection extent largely charge selection back to any similar to the that to has be states, there rule arise the ability, injunction will would an the same get risk what and from rule? able that be? there

Michael Neidorff

the you business Medicaid bigger Jeff, think little finally I will that exchange want particular pure thing than has on be But some I to difficult, more on impact and the degree. to?

Jeffrey Schwaneke

follow view to is Yes. it way It acuity that in way have our recalculate the same. go eligibility the leaving program, these states process. the mean the would you I a shift would there is are members rates. the would either same It follow and the back redeterminations on

Gary Taylor

Got you. Thank you.

Operator

Please Ralph question next today Citi. ahead. comes with The from Giacobbe go

Ralph Giacobbe

morning. good Thanks,

Michael Neidorff

morning. Good

Ralph Giacobbe

if on through But hop impact determinations? a did if bit the you actually so -- quantify little you the I MLR did was late, on from already. what went apologies you the

And revisit started related the midyear sort what you to and then higher ramp have harp like you question, the also the the second I the of business that At year. move understand of about business to sort of sort But to I part it, of you but Iowa redetermination. of MLR time the guidance, you want that on, the as is just assume through improvement differences hit new coming kind same a the and on in MLR. talked new have sub-timing

as you against that well. seasonally exchange And business works then the

point I'm mid in the XQ MLR. terms else So there gives fourth for that Thanks. the still reconciling I the anything payments guess of high Is or to having or of considerations range? just quarter other trouble comfort

Jeffrey Schwaneke

Yes.

in first have the I right. were guess we say is, like quarter, in So I margin you building what would Iowa, remember to

the margin in that be not did number plan first that point margin after goes far on You in quarter quote to. we redeterminations quarter build that impact on live and as the a another MLR, thing eligibility that. is the as the would lower fourth build I And

commentary that's I only I give the guess, you. other

Ralph Giacobbe

Okay, fair enough. Thank you.

Operator

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

Michael Neidorff

meeting where to for December call. And of participation business -- just your everybody we're along the we but the answer your want to is with forward good we you. XXth, with where can -- give thank even about I questions. and right. more looking and the All being thank And we're now us really feeling

Operator

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

now You may disconnect.

Centene (CNC) 22 Oct 192019 Q3 Earnings call transcript