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Stock Market & Financial Investment News

News Breaks
October 17, 2012
12:09 EDTCNC, CVH, WCGCentene jumps on plans to terminate Kentucky deal
Centene (CNC), which provides services related to Medicaid, announced that it had terminated its Medicaid contract with the state of Kentucky. The company said it believes that its contract with the state gives it the right to take this step, and it expects to terminate the deal effective July 5, 2013. Centene added that it has filed a "formal dispute" for damages that it incurred under the contract. The company anticipates recording a pre-tax premium deficiency reserve ranging from $60M-$70M related to the Kentucky operations in the quarter ended September 30. In a note to investors earlier today, Wells Fargo analyst Peter Costa wrote that Centene's earnings had been pressured by very high medical costs in Kentucky. The company's exit from the contract should mitigate the negative impact that Kentucky has had on the company's earnings, the analyst added. Meanwhile, Centene's move could cause problems for two of its competitors, Conventry (CVH) and WellCare (WCG), according to Costa. Centene's more expensive Medicaid recipients are likely to move to plans offered by those companies, he explained. The analyst maintained Outperform ratings on Centene and Coventry, and a Market Perform rating on WellCare. In late morning trading, Centene climbed $3.73, or 10.66%, to $38.71, while Coventry lost 0.43% to $43.56 and WellCare gained 1.04% to $54.24.
News For CNC;CVH;WCG From The Last 14 Days
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September 22, 2014
07:40 EDTWCGWellCare Medicare Advantage margin outlook concerning, says Wedbush
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September 19, 2014
06:49 EDTCNC, WCGGovernment says 7.3M in private Obamacare plans, NY Times reports
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September 18, 2014
07:52 EDTCNCCentene subsidiary Sunshine Health awarded Commendable Accreditation from NCQA
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September 11, 2014
10:19 EDTCNCCentene management to meet with Oppenheimer
Meeting to be held in St. Louis on September 11 hosted by Oppenheimer.

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