Centene dips on high costs tied to Medicaid plans

Shares of health insurer Centene CNC.N fall ~7% to $57.19 in afternoon trading

Company's medical spending is slightly above Wall Street estimates, as it faces high costs in its government-backed Medicaid plans for lower-income groups

CNC reports Q1 medical loss ratio — the percentage of premiums spent on medical care — of 87.5%, compared with analysts' estimate of 87.44% - data compiled by LSEG

Insurer expects costs to ease as the gap between what it spends on care for Medicaid members and the amount states pay insurers to cover those costs is narrowed

Company posts Q1 adjusted profit of $2.90 per share, beating analysts' estimate of $2.54 per share, helped by strength in its commercial health insurance plans

Including session's moves, stock down 5.5% YTD