Summary
Centene Corporation (CNC) has announced its 2024 Medicare Advantage Star Ratings results, which were recently published by the Centers for Medicare and Medicaid Services (CMS). The company reported that approximately 73% of its membership is associated with contracts that showed year-over-year unrounded score improvement. Furthermore, a significant 87% of its membership is now in contracts rated 3.0 stars or better, a notable increase from 53% in the prior year. These figures align closely with management's previous public targets, indicating progress towards the company's multi-year goals for enhancing its Star ratings, which are crucial for revenue and continued growth in its Medicare Advantage business.
Key Highlights
- 1Centene's 2024 Medicare Advantage Star Ratings show improvement, with 73% of membership in contracts with year-over-year score improvement.
- 287% of Centene's Medicare Advantage membership is now in contracts rated 3.0 stars or better, up from 53% in the prior year.
- 3These results are consistent with the company's most recent publicly stated targets and management's commentary.
- 4The improvement represents a first step towards Centene's multi-year goals for enhancing Star ratings.
- 5CMS Star ratings are a critical factor impacting revenue and future growth for Centene's Medicare Advantage plans.
Frequently Asked Questions
Centene announced that 73% of its Medicare Advantage membership is in contracts with year-over-year score improvement, and 87% is in contracts rated 3.0 stars or better. This is a significant increase from the prior year's 53% in contracts rated 3.0 stars or better.
The announced Star Ratings are consistent with Centene's most recent public targets, including management's commentary that approximately two-thirds of members would show raw score improvement and roughly 90% of members would be in contracts crossing the three-star threshold.
CMS Star ratings are critical because they directly impact Centene's revenue and future growth opportunities within its Medicare Advantage business. Higher star ratings can lead to increased government payments and better market perception.
No, Centene states that while this demonstrates progress and is a first step towards its multi-year goals, the company acknowledges it 'has work to do to improve star scores.'