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.

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

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.

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.

In its second quarter, the Clayton-based company lost $253 million dollars, 51 cents a share. In the same period last year, Centene saw earnings of $2.26 a share.

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,