Centene & UnitedHealth Group Report Healthy First Quarter Results

Health insurers are holding their first quarterly calls with investors for 2026; UnitedHealthcare appears to be back on track after a rocky 2025, and Centene is reportedly holding steady despite losses from surging ACA premiums.

Centene’s profits rose 17.5% to $1.5 billion in the first quarter with revenue increasing 7.1% to $49.9 billion. Overall, its medical loss ratio declined from 87.5% to 87.3% as Medicare and Medicaid costs came in lower than projected, Modern Healthcare reports. In response, the company raised its earnings guidance from at least $1.98 to $2.37.

Centene remains one of the largest providers of ACA exchange individual market insurance, and has managed to maintain its $1.5 billion profits despite a loss of 2 million Marketplace enrollees. In the quarterly call, Centene said that its marketplace enrollment dropped to 3.58 million at the end of the first quarter, compared to 5.54 million at the end of last year. Centene’s Medicaid coverage, branded as Ambetter and locally as Arizona Complete Health, along with the insurer’s Medicare Part D drug products, picked up the slack and drove enrollment in the first quarter, Forbes notes.

Currently, Arizona Complete Health has about 360,000 AHCCCS Complete Care enrollees, controlling nearly 25% of the market.

Recently, UnitedHealth Group expressed nothing but full confidence in its current direction, just a year after high utilization rates caused an earnings shortfall that critically wounded shares in the company. In response, former CEO Stephen Hemsley returned to the job and committed to boosting margins, the Wall Street Journal explains. Hemsley implemented changes like replacing half the company’s top executives and heavily investing in artificial intelligence. UnitedHealth Group’s reported first-quarter results that exceeded Wall Street expectations and raised its full-year outlook, signaling progress in its financial recovery.

Even so, the company is still grappling with increased utilization according to Tim Noel, CEO of UnitedHealthcare, who said that the company projects rates for Medicare Advantage plans to remain the same as they were in 2025. Reuters reports that the company also said the Centers for Medicare and Medicaid Services proposed MA rate increase of 2.48% for 2027 was too low.