May 29 (Reuters) -

Health insurer Centene ( CNC ) said on Wednesday it had

bigger-than-expected claim receipts in April and the trend of

higher medical costs in Medicaid continued into May.

Medicaid is the federal health program for low-income people

and families in the United States.

Earlier in the day, shares of U.S. health insurers fell

after UnitedHealth Group ( UNH ) cited a near-term disturbance

around reimbursement rates for Medicaid due to program-wide

enrollment hurdles that began about a year ago.

"The commentary around Medicaid redeterminations will also

create uncertainty for the companies with exposure to Medicaid,"

Mizuho analyst Ann Hynes said.

Shares of Centene ( CNC ) were down 1.4% at $69.50 in extended

trading after falling about 3.7% during market hours.

Medicaid accounts for approximately 65% of Centene's ( CNC )

total revenue and about 54% of total medical membership, Hynes

said.

Medicaid memberships were hit by the removal of

pandemic-related relief measures in April 2023 that rendered

several members ineligible for insurance coverage.

Centene ( CNC ) lost a little more than 260,000 Medicaid members

in the second quarter

last year

due to redetermination, and had around 13 million members

under Medicaid as of March 31, 2024.

The company said last year that it was working to enroll

people who may still be eligible but were disenrolled back into

Medicaid plans.

Centene ( CNC ) also said it expects to reaffirm its 2024 adjusted

profit forecast of greater than $6.80 per share.

The insurer added that the Medicare segment "is on track

with expectations in April 2024". The Medicare program provides

health insurance to people aged 65 and older or who are

disabled.