The nation's largest health insurer may be pulling out of most state health-care exchanges, but St. Louis-based managed care provider Centene is benefiting from the expansion of Medicaid under the Affordable Care Act.
Centene on Tuesday reported better-than-expected quarterly profit, helped by lower medical costs in certain patient populations and the acquisition of rival Health Net.
Earlier this month, UnitedHealth Group said it would largely abandon the exchanges, a move that stands to increase premiums slightly for many customers and leave some states with few insurer options, according to the Kaiser Family Foundation.
Centene's chairman and CEO, Michael Neidorff, said Thursday that United caters to a "high-end" client relative to his company's typical customer. Centene specializes in providing care to people who drop out of Medicaid because they lose eligibility.
"We're doing managed care. We're improving quality," he told CNBC's "Squawk Box."