(Reuters) -Centene beat Wall Street estimates for first-quarter profit on Friday, helped by strength in its commercial health insurance plans.
On an adjusted basis, the health insurer reported a profit of $2.90 per share, compared with analysts’ estimate of $2.54 per share, according to data compiled by LSEG.
It reiterated its full-year adjusted diluted profit forecast of greater than $7.25 per share.
Centene has relied on growth in its commercial marketplace business as it struggles with higher costs in its Medicaid plans for lower income groups, as well as a drop in members in those plans.
The insurer expects costs to ease as the gap between what it spends on care for Medicaid members and the amount states pay insurers to cover those costs is narrowed.
For the quarter, Centene reported a medical loss ratio — the percentage of premiums spent on medical care — of 87.5%, compared to analysts’ average estimate of 87.44%, according to data compiled by LSEG.
(Reporting by Sneha S K in Bengaluru; Editing by Pooja Desai)
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