Humana keeps TRICARE East, Centene loses West region, says Wells Fargo

Wells Fargo analyst Stephen Baxter commented on the DHA’s award of the next managed care support contracts for the TRICARE East and West regions, telling investors in a research note that Humana’s (HUM) contract will cover about 4.6M beneficiaries in 24 states and Washington, D.C., a decline from about 6M beneficiaries and 32 states, driven by the DHA’s move to a more balanced two-region model. Baxter, who made no change to the firm’s Overweight rating on Humana, notes that the DHS’s move was known coming into the award, and says that Centene (CNC) lost the TRICARE West region, though there is still an opportunity for unsuccessful bidders to protest the award. Baxter made no change to the firm’s Equal Weight rating on Centene shares.