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U.S. President Donald Trump speaks at a rally to kick off the July Fourth holiday weekend at the … More Iowa State Fairgrounds on July 03, 2025 in Des Moines, Iowa. The president used the opportunity to tout his just passed “One Big Beautiful Bill Act” which outlines his administration’s spending priorities that included $1 trillion in cuts to Medicaid and other healthcare benefits for Americans. (Photo by Scott Olson/Getty Images) Getty Images The problems Centene appears to be having managing the costs of low-income Americans covered by Medicaid and individual plans under the Affordable Care Act could only be the beginning of what’s to come for more health insurers. Centene last week pulled its financial forecast for the rest of this year after an outside firm’s review of data that showed subscribers in its ACA plans are sicker and need more care than the company anticipated. In addition, Centene is also seeing higher cost trends in its Medicaid business — coverage for low-income Americans the insurer helps more than two dozen states manage. In the future, the management of Medicaid patients may get even trickier for health insurers after President Donald Trump last week signed into law legislation that cuts $1 trillion from Medicaid and ACA plans that is expected to eliminate coverage for nearly 12 million Americans over the next decade, data from the Congressional Budget Office shows. Analysts expect health insurers to find it more difficult to keep Americans signed up for Medicaid and ACA plans because the Trump-approved bill requires more eligibility checks and bureaucratic hurdles. These eligibility checks in the Medicaid program are called “redeterminations” and they are already to blame for millions of Americans falling off of Medicaid coverage following the end of the Covid-19 pandemic in 2023. “Due to new red tape and…

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Filed under: News - @ July 7, 2025 11:22 am