Sept 10 (Reuters) - Centene ( CNC ) forecast

third-quarter profit below Wall Street estimates on Tuesday as

the health insurer anticipated an increase in medical costs in

the government-backed Medicaid program.

States began reassessing eligibility for enrollment in

Medicaid last year, following the termination of a policy that

required insurers to keep low-income Americans enrolled through

the COVID-19 pandemic.

The reassessment led to a shift to sicker patients in its

plans and a fall in memberships.

At a healthcare conference last week, Centene ( CNC ) said the

third-quarter medical loss ratio - the percentage of premiums

spent on medical care - would be "a little bit higher than" the

second quarter for Medicaid.

In July, the company said it expected medical costs to

improve next year as states complete their reassessments of

Medicaid enrollments.

The Medicaid-focused insurer also provides commercial

insurance plans and Medicare plans covering older adults.

In its forecast on Tuesday, Centene ( CNC ) said it sees 20 to 30

cents of profit per share shifting to the fourth quarter from

the third.

It also forecast third-quarter adjusted profit per share

between $1.31 and $1.41, below analysts' estimates of $1.51 per

share, according to LSEG data.

Still, the company reaffirmed its annual profit forecast of

more than $6.80 per share. Analysts expect a 2024 profit of

$6.83 per share.