Centene Corporation (NYSE: CNC) suffered a historic collapse on July 2, plunging nearly 40% after withdrawing its full-year guidance.
The company blamed mounting challenges in its Medicaid and Affordable Care Act (ACA) businesses. CNC closed the last trading session at $33.31, down 38% over the past week.
Suspicious CNC stock Congress trades
Amid the turmoil, disclosures show that four United States House members sold CNC shares between May 12 and May 30, weeks before Centene’s warning and before Congress passed the One Big Beautiful Bill Act (OBBBA), which cuts Medicaid funding by $1 trillion over the next decade.
On May 30, Rep. Gilbert Ray Cisneros sold between $1,001 and $15,000 worth of Centene stock. Just two days earlier, Rep. Ro Khanna unloaded a similar amount, after buying the same range of CNC shares earlier in the month on May 19.
Rep. Robert Bresnahan sold between $1,001 and $15,000 worth of CNC stock on May 15, while his colleague Jefferson Shreve sold a larger position, between $15,001 and $50,000, on May 12.
It’s worth noting that Bresnahan has said he doesn’t manage his portfolio and has pledged to place his assets in a qualified blind trust. However, records show he has yet to establish the trust, despite growing calls for tighter restrictions on Congress trades.
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Centene stock troubles
These trades came weeks before Centene disclosed on July 2 that enrollment and cost trends would slash earnings by $2.75 per share.
The following day, both chambers of Congress passed OBBBA, imposing stricter Medicaid work requirements and eligibility checks, which are projected to remove 10 to 12 million Americans from coverage by 2034.
Critics warn the legislation could devastate low-income families and rural healthcare providers, while supporters argue it will curb fraud and abuse.
At the same time, Centene now faces intensifying headwinds as healthier enrollees drop coverage following the rollback of pandemic-era benefits, leaving it with fewer, higher-cost members and squeezing earnings.
While lawmakers are allowed to trade stocks, the timing of these transactions, in a company directly affected by major legislation, has fueled concerns about possible misuse of insider knowledge to profit from congressional actions.
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