CNC · 10-Q · 2026Q1 · Full report

Medicaid Revenue and Acuity Trends

CENTENE CORP · 2026-04-28 · Importance 49 · Surprise 32

Medicaid total revenues increased 9% in Q1 2026 to $28.9 billion, driven primarily by state‑directed payments and rate increases intended to reflect higher acuity and medical cost trends. These revenue increases were partially offset by lower Medicaid membership resulting from post‑PHE eligibility redeterminations. Gross margin for the Medicaid segment increased by $186 million year‑over‑year, which management attributes to rate/revenue actions and progress in managing medical costs.

Key facts

• Medicaid gross margin for Q1 2026: $1,618 million, an increase of $186 million compared to Q1 2025.
• Total revenues increase drivers for Q1 2026 included premium yield and PDP membership growth, state-directed payments, and Medicaid rate increases to address medical trend, partially offset by lower Marketplace and Medicaid membership.

Impact estimates