Centene stock surges as Trump may extend ACA health insurance subsidies
Centene Corporation’s stock has climbed on reports that the Trump administration may extend Affordable Care Act (ACA) subsidies for another two years. The move could prevent sharp rises in Obamacare premiums and help more consumers retain their healthcare coverage.
The potential extension of ACA subsidies comes as welcome news for Centene, a major player in the health insurance market. The company’s commercial marketplace business expanded by 12% in 2024, driven largely by the ACA. This growth contributed to a 4% increase in overall revenue for the year.
The possible extension of ACA subsidies would provide Centene with greater certainty in maintaining its growth. While losses are projected for 2025, the company’s return to profitability in 2026 may depend on sustained policy support. The stock’s recent rise reflects investor confidence in the potential stability of Obamacare funding.
