Wellcare, the Medicare brand of Centene Corporation, is moving its Medicare‑Medicaid Plans (MMPs) into integrated Dual‑Eligible Special Needs Plans (D‑SNPs) in Illinois, Michigan, Ohio, South Carolina, and Texas. The transition will take effect on January 1, 2026 and will cover more than 51 million beneficiaries across 32 states while adding 8 million prescription‑drug‑plan members nationwide.
The shift to D‑SNPs consolidates Medicare and Medicaid benefits for dual‑eligible members into a single plan. By doing so, Wellcare aims to streamline care coordination, lower administrative overhead, and improve the overall member experience. The move aligns with the Medicare‑Medicaid Financial Alignment Initiative and positions Centene to capture a larger share of the dual‑eligible market, which is a high‑need, high‑cost population.
Centene’s recent financial performance underscores the company’s capacity to support this expansion. In the third quarter of 2025, the company reported revenue of $49.69 billion and an adjusted EPS of $0.50, beating consensus estimates by $0.12 and 24 percent, respectively. The quarter’s results were driven by strong demand in core segments and disciplined cost management. In the fourth quarter of 2024, Centene posted revenue of $40.81 billion and an adjusted EPS of $0.80, a beat of $0.29 and 57 percent, reflecting robust growth in its Medicare Advantage and Medicaid businesses.
The announcement arrived amid investor concerns about President Donald Trump’s proposal to redirect federal healthcare funding directly to individuals, a move that could threaten the revenue model of companies that rely heavily on government‑sponsored programs. While the proposal raised uncertainty for Centene’s core business, the company’s recent earnings beats and solid cash flow suggest it is well positioned to navigate short‑term headwinds.
Michael Carson, CEO of Wellcare, said the company is “especially excited about the continued growth and integration of our Dual‑Eligible Special Needs Plans, in collaboration with our federal and state partners.” CEO Sarah London added that Centene’s “fundamental improvement” in Medicaid performance and the company’s focus on operational execution and investment income support its confidence in pursuing this strategic initiative.
The D‑SNP transition is a long‑term growth strategy that complements Centene’s broader efforts to consolidate Medicare and Medicaid benefits. By simplifying the care experience for dual‑eligible members, Wellcare is poised to strengthen its competitive position and drive sustainable revenue growth in a market that is increasingly focused on integrated, value‑based care.
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