Wellcare to expand Medicare Advantage plans to over 51 million beneficiaries

TAMPA - Wellcare, the Medicare brand of Centene Corporation (NYSE:CNC), a prominent healthcare provider with annual revenues of $159.7 billion, announced Wednesday it will offer Medicare Advantage (MA) plans to more than 51 million beneficiaries across 32 states in 2026, expanding into 51 new counties across eight markets. According to InvestingPro analysis, Centene appears undervalued at current market levels, with strong financial health indicators supporting its expansion strategy.

The company will continue to provide Prescription Drug Plan (PDP) products nationwide to more than 8 million members across all 50 states, according to a press release statement.

A significant change for 2026 includes Wellcare’s transition from Medicare-Medicaid Plans to integrated Dual Eligible Special Needs Plans (D-SNPs) in five states: Illinois, Michigan, Ohio, South Carolina, and Texas. This shift aligns with the conclusion of the Medicare-Medicaid Financial Alignment Initiative.

"We’re especially excited about the continued growth and integration of our dual-eligible plans, in collaboration with our federal and state partners," said Wellcare Chief Executive Officer Michael Carson.

The company is adding counties to its footprint in California, Illinois, Iowa, Kansas, Michigan, Nevada, Texas and North Carolina, now covering more than 75% of eligible beneficiaries across more than 1,850 counties.

Plan features include the Wellcare Spendables card, which offers eligible members preloaded funds available at over 66,000 nationwide retailers for various benefits including over-the-counter health items and covered dental, vision and hearing costs.

All plans will offer $0 or low copays for primary care physician visits, and insulin costs will be capped at either $35 or 25% of the drug’s negotiated price, whichever is lower.

The Medicare Annual Enrollment Period runs from October 15 through December 7, 2025, with coverage for enrollees beginning January 1, 2026. With a solid return on equity of 8% and operating with moderate debt levels, Centene appears well-positioned to execute its expansion plans. Discover more financial metrics and expert analysis in InvestingPro’s detailed company report, which includes over 30 key financial indicators and growth metrics.

In other recent news, Centene has reaffirmed its fiscal year 2025 adjusted earnings per share guidance of approximately $1.75, as highlighted in a recent 8-K filing and conference presentation. Truist Securities responded by raising its price target for Centene to $39 while maintaining a Buy rating, reflecting a bullish outlook on the company’s future performance. Meanwhile, Bernstein reiterated an Outperform rating with a $36 price target, citing stable Medicaid utilization and positive developments in Centene’s Marketplace business.

Cantor Fitzgerald maintained its Neutral rating and $38 price target on Centene, noting the company’s path to achieving break-even Medicare Advantage margins by 2027, supported by increased bonus revenue. The firm also highlighted the impact of state-specific Medicaid shifts on Centene’s performance heading into 2026. Additionally, Cantor Fitzgerald expressed caution about the marketplace environment, as finalized 2026 rates across 15 states align with payor proposals but fall short of anticipated increases.

These recent developments provide investors with insights into Centene’s strategic focus and financial projections as it navigates the evolving healthcare landscape.

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