CNC · 10-Q · 2026Q1 · Full report

Part D Receivables Financing

CENTENE CORP · 2026-04-28 · Importance 65 · Surprise 60

Centene has a master receivable purchase agreement (February 2026 Receivable Purchase Agreement) that permits selling up to $4.25 billion of 2025 plan year stand‑alone Part D risk‑sharing program receivables; $3.0 billion of such receivables remained eligible as of March 31, 2026. In March 2026 Centene sold a participating interest of $1.0 billion of 2025 Part D receivables, receiving net cash proceeds of $970 million and recording a pre‑tax loss on sale of $30 million included in SG&A. The purchaser pricing is discount‑based referencing SOFR plus a spread, and Centene continues to service transferred receivables while using proceeds to support liquidity and partial debt redemption.

Key facts

• In March 2026, Centene sold a participating interest of $1.0 billion of 2025 plan year stand-alone Part D risk-sharing programs receivables and received net cash proceeds of $970 million, resulting in a pre-tax loss on sale of receivables of $30 million recorded in SG&A.
• Proceeds from the $970 million receivable sale were used for the partial redemption of Senior Notes due December 15, 2027.
• Centene has receivables due from CMS for Part D risk-sharing programs attributable to the 2025 plan year that it expects to be paid by CMS within a year after the plan year closes.