Centene’s Plunge Reflects Widespread Concerns About Trump’s Changes to ACA Subsidies

Centene (CNC) shares tumbled close to 10% in premarket trading on November 10, 2025, after President Donald Trump reignited discussions about sending Affordable Care Act (ACA) subsidies straight to individuals, sidestepping insurance companies.

. The stock, which had already lost over 40% so far this year, dropped to $34.07 as uncertainty mounted over the GOP’s plan to reroute federal healthcare funds away from insurers . The proposal, which Trump described as a way to dismantle "money sucking" insurers, gained momentum in the U.S. Senate during a 40-day government shutdown, with the expiration of ACA subsidies at year-end becoming a central issue in negotiations .

This plan could fundamentally disrupt the business models of leading insurers such as

, which earns 60% of its income from Medicaid and 20% from ACA marketplace plans . With 22 million people enrolled in government-backed plans, Centene is highly sensitive to policy changes. The company’s latest financial results highlight this vulnerability: Centene posted a $5.29 billion net loss over the past year, despite generating $167.68 billion in revenue, and reported earnings per share of -$10.67 . Analysts are now questioning if Centene’s recent earnings surprise and its updated 2025 outlook—which raised adjusted EPS to at least $2.00—can counterbalance the policy uncertainty .

The negative sentiment wasn’t limited to Centene. Oscar Health and other insurers focused on ACA markets also experienced losses, reflecting widespread concern in the sector

. Trump’s proposal, which he claims would give consumers more control by placing subsidies into Health Savings Accounts or flexible spending accounts, has faced criticism from both parties. Opponents argue it could jeopardize coverage for 24 million ACA participants, especially those with pre-existing health conditions . Supporters, on the other hand, believe it would remove what they see as “corrupt” middlemen and lower costs for individuals .

Centene’s recent moves—including expanding Wellcare Medicare offerings in Texas and growing Ambetter Marketplace plans in South Carolina—demonstrate its focus on growth opportunities

. However, these initiatives may not be enough to counteract the financial pressure from possible subsidy reductions. With a debt-to-equity ratio of 0.84 and an interest coverage ratio of 1.61, Centene’s ability to withstand financial shocks appears limited . With a market value of $16.82 billion, Centene is still one of the largest players in government-funded healthcare, making it especially vulnerable to policy shifts .

The Senate’s choice to postpone a final decision on extending subsidies until December has only increased the uncertainty. While some lawmakers view this as a compromise, investors remain cautious. “If ACA subsidies aren’t renewed, it’s a setback for health insurers and hospitals,” said James Harlow, senior analyst at Novare Capital Management

. Centene’s shares, now trading 43.5% below where they were a year ago, face the dual challenge of managing immediate policy risks while pursuing long-term growth .

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