Centene Corporation (CNC)

Centene runs health plans for low-income patients under government contracts — the largest player in that market.

A state hands the company a fixed sum per enrolled member and asks it to arrange care; profit arises when actual costs come in lower. The key metric is the share of premiums spent on claims: a couple of points of increase removes the profit entirely, and rates are reset more slowly than costs move.

What distinguishes this segment is dependence on policy: enrolment changes by a state's decision on eligibility, and the mass eligibility review after the pandemic cut coverage by millions of people. The second line is exchange marketplace plans, where the enrolled population turns over annually and costs are harder to predict. The company pays no dividend.