Centene Overhauls Medicare Advantage Strategy Amid Margin Pressures

Centene Corporation (CNC) is retooling its Medicare Advantage strategy to improve margins. The company aims to simplify its plan footprint, focusing on dual-eligible members, and better align resources with markets where it has a strong presence.

The move appears to be paying off, as the Medicare segment's health benefits ratio improved to 89.5% in Q2 2026 from 90.9% a year ago. This reflects outperformance in both Medicare Advantage and PDP, along with favorable programmatic items and no premium deficiency reserve for MA.

CNC plans to further simplify its MA footprint in 2027, focusing on dual-eligible members and using Medicaid experience to support integrated care. While medical costs remain elevated, the company's targeted approach could reduce complexity and improve operating efficiency.

Rivals UnitedHealth Group (UNH) and Elevance Health are also prioritizing Medicare Advantage margin recovery. UNH has improved its medical care ratio, but Elevance Health is taking a more selective approach to MA, accepting membership declines while repositioning the business for sustainable returns.