Wall Street regained confidence in Medicaid insurers after Centene said on Friday it expects to be able to raise rates charged to states for 2026 health plans for low-income Americans and strengthen profit margins.

Centene posted a $253 million loss in the second quarter as it navigates significant cost pressures on the Affordable Care Act's marketplaces. | Centene posted a $253 million loss in the second quarter as it navigates significant cost pressures on the Affordable Care Act's marketplaces.

HCA Healthcare raises 2025 profit forecast amidst insurance uncertainty while Centene anticipates a 2026 profitability boost despite current losses. Sarepta faces EU setbacks on gene therapy, and Moderna sees EU approval of updated COVID vaccine.

The Clayton-based health giant is likely to face increased challenges as federal government tightens Medicaid eligibility and trims subsidies for Obamacare plans.

Health insurers are navigating rising costs and regulatory challenges, with Centene (CNC) slashing its forecast amid ACA uncertainties. Arthur Wong, S&P Global Ratings healthcare managing director, and Adriel Bettelheim,

Centene expects to deliver improved profitability in its three government-backed healthcare insurance businesses in 2026, it said on Friday, sending its shares up 5% and reversing previous premarket losses.