Commercial Marketplace membership increased 34% year-over-year, with the Marketplace plan available across 29 states. This growth is attributed to strong product positioning and open enrollment results.

Medicaid membership decreased by 2.4 million members since April 2023 due to the resumption of redeterminations. The company anticipates limited further reductions as most states have substantially completed their unwinding processes.

The company completed the divestitures of Operose Health Group and Circle Health in December 2023 and January 2024, respectively. These actions are part of a broader strategy to optimize the company's portfolio.

Centene is actively engaged in helping individuals confirm Medicaid eligibility or find alternative coverage. The Ambetter Health product covers the majority of Medicaid states, positioning the company to enroll those transitioning coverage.

The company intends to continue targeting initiatives to improve productivity, efficiencies, and reduce organizational costs. These efforts are aimed at enhancing member and provider experience and improving outcomes.

Dave Thomas, CEO of Markets & Medicaid, will no longer be employed by the company as of December 2, 2024. This transition may introduce uncertainty, but the company is assisting with the transition of his role.

The decrease in Star quality ratings in the 2023 rating year adversely impacts 2024 Medicare revenue. A premium deficiency reserve of $335 million was recorded in the second quarter of 2024 to reflect the seasonality of earnings in connection with the 2024 Medicare Advantage business.

The United States government, policymakers and healthcare experts continue to discuss and debate various elements of the United States healthcare model. The company remains focused on delivering access to high-quality, affordable healthcare to all of our members and believe we are well positioned to meet the needs of the changing healthcare landscape.

The Company is routinely subjected to legal and regulatory proceedings in the normal course of business. These matters can include, without limitation, periodic compliance and other reviews and investigations by various federal and state regulatory agencies with respect to requirements applicable to the Company's business.

Marketplace membership increased 34% year-over-year due to strong product positioning and open enrollment results, as well as overall market growth. This indicates a competitive advantage in the commercial segment.

Medicare Prescription Drug Plan (PDP) membership increased 47% year-over-year, indicating a strong competitive position in the Medicare PDP market.

Medicare Advantage membership declined year-over-year, suggesting increased competition or challenges in retaining members in this segment.

The SG&A expense ratio decreased to 8.0%, driven by Marketplace risk adjustment revenue, divestitures, and ongoing SG&A reduction initiatives. This indicates improved operational efficiency.

Cost of services decreased by $197 million in the three months ended June 30, 2024, compared to the corresponding period in 2023. The decrease was driven by recent divestitures.

The company intends to continue to target initiatives to improve productivity, efficiencies and reduced organizational costs, suggesting an ongoing focus on operational efficiency.

Capital expenditures of $337 million were primarily driven by system enhancements and computer hardware, indicating investment in technology and infrastructure.

With trends in the personalization of healthcare technology, we continue the use of data and analytics to optimize our business.

The company repurchased 10.7 million shares for $800 million during the second quarter of 2024, with $4.4 billion remaining under the repurchase program. This demonstrates a commitment to returning capital to shareholders.

The company expects to receive net dividends of approximately $1.2 billion from its insurance subsidiaries during the remainder of 2024, providing capital for other uses.

As part of our capital allocation strategy, we may decide to repurchase debt or raise capital through the issuance of debt in the form of senior notes. In 2022, the Company's Board of Directors also authorized a $1.0 billion senior note debt repurchase program.

In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. The Company is monitoring the development of litigation related to the SEC's rule, and is currently evaluating the effect of the new disclosure requirements.

Medicaid membership decreased due to the resumption of redeterminations, reflecting a changing market environment. The company is working to mitigate the impact and transition members to other coverage options.

The American Rescue Plan Act (ARPA), enacted in March 2021, initially enhanced eligibility for the premium tax credit for enrollees in the Health Insurance Marketplace, which was extended through 2025 by the Inflation Reduction Act, enacted in August 2022.

The United States government, policymakers and healthcare experts continue to discuss and debate various elements of the United States healthcare model.