Medicaid expansion drove revenue growth at insurers in the first quarter, and Centene's (NYSE:CNC) shares have rallied to new highs on expectations that growth continued through the second quarter.
Over 6 million people have signed up for Medicaid coverage since the Affordable Care Act launched last fall, providing signficant support for companies such as Centene, Molina (NYSE:MOH) and Health Net (UNKNOWN:HNT.DL) that run state programs.
In the following slideshow, I address Centene's exposure to Medicaid enrollment growth and provide insight into key considerations investors should keep in mind when Centene reports earnings on July 22.
Todd Campbell owns shares of Molina Healthcare and Centene Corp. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. Todd owns Gundalow Advisors, LLC. Gundalow's clients do not have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.