Centene Surges on Medicaid Costs, Star Scores Update (1)

Centene Corp. shares surged after the insurer said gave upbeat views of its Medicare quality ratings and costs in its Medicaid business, positive signs for the company’s turnaround.

The preliminary look at the Medicare quality scores, known as star ratings, was in-line with the company’s expectations, with a slightly higher percentage of members in four-star plans that pay bonuses, Chief Executive Officer Sarah London said Thursday at a Deutsche Bank conference.

Centene also said its Medicaid business was seeing cost improvements in the second half, according to a research note from Barclays analysts who called the update “better than feared.” ...