Centene Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Centene Corporation has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

CENTENE CORP (CNC) filed a Annual Report (10-K) with the SEC on February 20, 2024. Centene Corporation filed its 2023 Form 10-K on February 20, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is described as Hospital & Medical Service Plans. Centene Corporation is incorporated in Delaware. The company's headquarters are located at 7700 Forsyth Blvd., St. Louis, MO.

Why It Matters

For investors and stakeholders tracking CENTENE CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Centene's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess the company's performance and future outlook. As a major player in the health insurance industry, Centene's annual report offers insights into market trends, regulatory impacts, and the company's competitive positioning within the healthcare sector.

Risk Assessment

Risk Level: medium — CENTENE CORP shows moderate risk based on this filing. The company operates in the highly regulated health insurance market, facing potential impacts from changes in government healthcare policies and reimbursement rates, which could affect its financial stability.

Analyst Insight

Investors should review Centene's detailed financial statements and risk factors in the 10-K to understand its performance and potential challenges in the evolving healthcare landscape.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-20 — Filing Date (Date of submission)
• 0001071739 — Central Index Key (Unique identifier for the filer)
• 001-31826 — SEC File Number (SEC's file number for the company)

Key Players & Entities

• CENTENE CORP (company) — Filer name
• CNC (company) — Ticker symbol
• 10-K (filing) — Form type
• 2023-12-31 (date) — Fiscal year end
• 2024-02-20 (date) — Filing date
• 7700 FORSYTH BLVD. (address) — Business street address
• ST LOUIS (location) — Business city
• DE (location) — State of incorporation

FAQ

Industry Context

Centene Corporation operates within the health insurance sector, providing a wide range of managed care services. The industry is characterized by significant regulatory oversight and evolving healthcare policies.

Regulatory Implications

As a health insurer, Centene is subject to extensive federal and state regulations governing health plans, including those related to Medicare and Medicaid. Changes in these regulations can significantly impact operations and profitability.

What Investors Should Do

1. Review Centene's detailed financial statements for the fiscal year ended December 31, 2023.
2. Analyze the risk factors section to understand potential challenges and their impact on the company.
3. Assess management's discussion and analysis of financial condition and results of operations for strategic insights.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-20: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual report for the fiscal year ended December 31, 2023, and provides updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 Par Value CNC New York Stock Exchange
• $292 m — lth Group (Circle Health) impairment of $292 million, or $0.53 per share ($0.47 after-
• $0.53 — Health) impairment of $292 million, or $0.53 per share ($0.47 after-tax), Operose He
• $0.47 — nt of $292 million, or $0.53 per share ($0.47 after-tax), Operose Health Group (Opero
• $140 m — th Group (Operose Health) impairment of $140 million, or $0.26 per share ($0.24 after-
• $0.26 — Health) impairment of $140 million, or $0.26 per share ($0.24 after-tax), real estat
• $0.24 — nt of $140 million, or $0.26 per share ($0.24 after-tax), real estate impairments of
• $105 m — after-tax), real estate impairments of $105 million, or $0.19 per share ($0.16 after-
• $0.19 — estate impairments of $105 million, or $0.19 per share ($0.16 after-tax), gain on th
• $0.16 — ts of $105 million, or $0.19 per share ($0.16 after-tax), gain on the sale of Apixio
• $93 m — ter-tax), gain on the sale of Apixio of $93 million, or $0.17 per share ($0.12 after-
• $0.17 — n the sale of Apixio of $93 million, or $0.17 per share ($0.12 after-tax), severance
• $0.12 — xio of $93 million, or $0.17 per share ($0.12 after-tax), severance costs due to a re
• $79 m — verance costs due to a restructuring of $79 million, or $0.15 per share ($0.11 after-
• $0.15 — e to a restructuring of $79 million, or $0.15 per share ($0.11 after-tax), gain on th

Filing Documents

• cnc-20231231.htm (10-K) — 3107KB
• a2023123110-kexhibit41.htm (EX-4.1) — 29KB
• a2023123110-kexhibit105.htm (EX-10.5) — 104KB
• a2023123110-kexhibit109.htm (EX-10.9) — 125KB
• a2023123110-kexhibit1031.htm (EX-10.31) — 46KB
• a2023123110-kexhibit21.htm (EX-21) — 98KB
• a2023123110-kexhibit23.htm (EX-23) — 2KB
• a2023123110-qexhibit311.htm (EX-31.1) — 11KB
• a2023123110-qexhibit312.htm (EX-31.2) — 10KB
• a2023123110-qexhibit321.htm (EX-32.1) — 5KB
• a2023123110-qexhibit322.htm (EX-32.2) — 5KB
• a2023123110-kexhibit97.htm (EX-97) — 37KB
• cnc-20231231_g1.jpg (GRAPHIC) — 107KB
• 0001071739-24-000037.txt (&nbsp;) — 16754KB
• cnc-20231231.xsd (EX-101.SCH) — 81KB
• cnc-20231231_cal.xml (EX-101.CAL) — 166KB
• cnc-20231231_def.xml (EX-101.DEF) — 504KB
• cnc-20231231_lab.xml (EX-101.LAB) — 1127KB
• cnc-20231231_pre.xml (EX-101.PRE) — 823KB
• cnc-20231231_htm.xml (XML) — 3054KB

Risk Factors

Item 1A. Risk Factors 18

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 36

Cybersecurity

Item 1C. Cybersecurity 36

Properties

Item 2. Properties 38

Legal Proceedings

Item 3. Legal Proceedings 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39

Reserved

Item 6. Reserved 41

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 63

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 64

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 109

Controls and Procedures

Item 9A. Controls and Procedures 109

Other Information

Item 9B. Other Information 111

Disclosure Regarding Foreign Jurisdictions that Prevent Implications

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Implications 112 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 112

Executive Compensation

Item 11. Executive Compensation 112

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 112

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 112

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 112 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 113

Form 10-K Summary

Item 16. Form 10-K Summary 117

Signatures

Signatures 118 T able of Contents CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS All statements, other than statements of current or historical fact, contained in this filing are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue" and other similar words or expressions (and the negative thereof). Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our future operating or financial performance, market opportunity, competition, expected activities in connection with completed and future acquisitions and dispositions, our investments and the adequacy of our available cash resources. These statements may be found in the various sections of this filing, such as Part I, Item 1. "Business," Part I, Item 1A "Risk Factors," Part I, Item 3. "Legal Proceedings," and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations." These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances t

Business

Item 1. Business OVERVIEW Our mission is to transform the health of the communities we serve, one person at a time. Centene is a leading provider of government-sponsored healthcare. We provide access to quality healthcare for nearly 1 in 15 individuals nationwide through government-sponsored programs, including Medicaid, Medicare and the Health Insurance Marketplace. Our focus is on improving health and health care for low-income, complex populations. Centene provides access to high-quality healthcare, innovative programs and a wide range of health solutions that help families and individuals get well, stay well and be well. Our uniquely local approach – with local brands and local teams who live in, care about and directly influence the communities they serve – is a key differentiator in our ability to provide access to quality care to our members. Centene treats the whole person, an approach that is delivered locally but backed by the scale of Centene's expertise, data and resources. Through this approach and our commitment to sustainable partnerships, we work with local community organizations to realize our mission of transforming the health of the communities we serve, one person at a time. We are focused on making strategic decisions and investments to create additional value in the short-term and to seek opportunities that position the organization for long-term strength, profitability, growth and innovation. In addition to creating shareholder value, we are modernizing and improving how we work in order to propel our organization to new levels of success and elevate the member and provider experiences. During 2023, we operated in four segments: Medicaid, Medicare, Commercial and Other. Medicaid - includes the Temporary Assistance for Needy Families (TANF) program; Medicaid Expansion programs; the Aged, Blind or Disabled (ABD) program; the Children's Health Insurance Program (CHIP); Long-Term Services and Supports (LTSS); Foster Care; Medicare-Medi

View Full Filing

View this 10-K filing on SEC EDGAR