Centene's Medicare Advantage Strategy Under Pressure Amid CMS Rate Proposal

Wednesday, Jan 28, 2026 1:35 pm ET1min read
CNC--

Centene's shares have retreated on the news of a 0.09% Medicare Advantage payment rate increase and tighter risk-adjustment rules for 2027 plans. The proposal raises questions about how Centene's Medicare Advantage business model needs to adapt to a tougher reimbursement backdrop, potentially impacting the company's margin repair and investor confidence. Despite retreating, shares may still be trading above their fair value and could face further downside.

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