Why Centene Shares Tumbled
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What: Shares of Medicaid provider Centene (NYS: CNC) fell 13% today after getting some bad news out of the state of Ohio.
So what: The Ohio Department of Job and Family Services said that Centene's subsidiary there, Buckeye Community Health Plan, was one of four incumbent health plans that was not awarded a contract to continue serving Medicaid members. The plan has been a participant in Ohio since 2004 and serves 159,900 people.
Now what: Centene plans to file a formal protest, but this doesn't look good for the company. Aetna and Meridian Health were picked to replace Centene and Molina Healthcare, which also lost its contract. Molina's stock has also tumbled, while Aetna's shares have fallen slightly in trading today.
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