Centene Corp. raised its forecast for full-year adjusted profit on Friday, betting on higher premiums from its government-backed Medicaid health insurance plans.
The Clayton-based health insurer has performed well on the federal Obamacare marketplace聽鈥 where it offers insurance plans聽鈥 so far in the second quarter, it said in prepared remarks for its investor day.
It now expects a profit of $5.55 to $5.70 per share for the full year, compared with its earlier forecast of between $5.40 and $5.55 per share.
The company said its board has decided to increase its existing share buyback program by $3 billion and launch a $1 billion debt repurchase program, as the insurer prepares for the upcoming divestitures of two of its pharmacy businesses.
Centene said last month it would sell the units for about $2.8 billion as part of its strategy to exit the pharmacy benefit management space.聽聽