centene virtual investor day

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August 1st, 2020

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We don't even know how many peaks we're going to have this year.

Good morning.

We now expect our total revenues for 2020 to be in the range of $110 billion to $112 billion.Next, GAAP and adjusted diluted earnings per share. So we have to work and see how it all plays out. All rights reserved Today I'd like to keep our discussion of the quarter's performance relatively brief and we'll spend more time on our outlook in light of the extraordinary circumstances we are facing and provide you with more detail on our expectations for the year.Overall, it was a good start to the year.
It would include both our prediction on the higher unemployment as well. And then just real quick. But there's some with the intensity and they probably be more acute.

What -- is there anything you can spike out in terms of the care patterns that you're seeing between Medicaid, commercial, marketplace and Medicaid?I'm not sure that there is a lot of differences right now.

Are you assuming that sort of COVID-19 is more of a regular occurrence as we kind of go forward.

And the key here is that while we, at this point, are confident on our guidance for the year, I cannot emphasize nothing. We continue to support initiatives that address hunger, connectivity, and increased demand for healthcare and educational supplies to name just a few.

I just love to go through those items and kind of see which ones are kind of more this year versus maybe have an impact beyond 2020?Kevin, I'll start off.

We have taken significant steps to support our employees and are doing everything we can to protect their health and safety, while ensuring continuity of our operations. Please go ahead, sir.Great. I think healthcare is something that needs there, and they realize that actions that reduce it and reduce the programs, really come back to haunt them very quickly.Our next question will come from Charles Rhyee of Cowen. And so that was unknown to us at the beginning of March when we gave our guidance.And so I guess from that perspective, we would kind of view we were in line with what we told people at the beginning of the month. Earlier, Jeff, I think you were referring to the rate cuts that were already implemented in January and can there's still some discussions so a possibility that will be adjusted, is that right? And CMS said clearly no, they understand that. Second, as a result of the higher unemployment rate in the U.S., the suspension of eligibility redeterminations and our product mix, we are increasing our total revenue guidance by an additional $4 billion at the midpoint, bringing our total guidance increase to $6 billion at the midpoint.We are also widening our guidance range, reflecting the lack of visibility with regard to the magnitude and duration of the high unemployment rate in the U.S. We have seen early evidence of membership growth in April, driven primarily by states suspending eligibility redeterminations and special enrollment periods for marketplace businesses in some states. Additionally, I'd like to highlight Centene's upcoming Investor Day scheduled for Friday, June 12, 2020. And what kind of impact that's having on that $0.17 for the full year impact on net investment income?Yeah. I guess, the last time, if I remember correctly, there was some pent-up demand on the new Medicaid enrollment for the first six months to nine months.
Our next question will come from Steve Valiquette of Barclays.

Instead, we've decided to defer that redemption and leave those -- leave that cash on the books. We had approximately $2 billion of unregulated cash on hand at the end of the first quarter and approximately $1.4 billion available on our revolving credit facility, creating almost $3.5 billion of immediate liquidity.The increase in leverage at quarter end was intentional, driven by the decision to defer the redemption of our 2022 senior notes.

While it seems like ER utilization that won't mean -- when that's not -- ER that's gone, but that's a small percentage of it. So if we went back to last time, were there program cuts and would that even be possible at this time or is there too much for the states to lease?Yeah. I don't really recall program cuts.

And tell me how it researches.

But there are people that are saying, in other locations, non-specific, well, we have to do maybe chemo before we do the surgery, because of the surgical suites and things. We're going to issue the 8-K or whatever, I set up a call, whatever because that's the world we're living in. I mean, it's things we haven't seen before.Thank you. And anytime there uncertainty, generally, you would add additional margin or additional cushion, if you will, because of the uncertainty of the environment you're in.

But right now, I'd say they're still open at this point and so more to come.And just like -- I mean, it's all very highly dependent on the outcome here on just whether a federal funding bill come through for the states?

But I can't say that other care will not return.

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