Becker Private Equity & Business Podcast Summary

Episode: Oscar Health, United & Centene: The Good, the Bad, & the Ugly
Host: Scott Becker
Release Date: July 14, 2025

Introduction

In this episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into the current landscape of major managed care companies—Oscar Health, UnitedHealthcare, and Centene Corporation. Titled "The Good, the Bad, & the Ugly," Becker examines the performance, challenges, and future outlook of these industry giants amidst a challenging year for managed care.

The Good: Oscar Health

Oscar Health emerges as the standout performer among its peers this year. Despite a generally tough market, Oscar has demonstrated resilience and growth.

• Performance:
  "Oscar Health is so far the good. It's given back some of its gains this year, but still up about 10% year to date."
  (00:45)

• Leadership:
  Under the leadership of Mark Bertolini, the former CEO of Aetna, Oscar Health benefits from strategic vision and experienced management. Becker highlights Bertolini's impact, stating,
  "It's run by brilliant executive Mark Bertolini, the former CEO of Aetna, a really, really smart person."
  (01:15)

Oscar's ability to maintain a positive trajectory in a difficult market underscores its strong foundational strategies and adaptive measures in managing patient care and financial performance.

The Bad: UnitedHealthcare

UnitedHealthcare faces significant challenges this year, marking a stark contrast to Oscar Health's performance.

• Performance Decline:
  "Number two of the big managed care companies that we'll talk about today is UnitedHealthcare. It's down 40% year to date."
  (02:00)

• Market Position:
  Despite the downturn, UnitedHealthcare remains a colossal entity in the industry, ranking as one of the largest by revenue in the United States. Becker remains cautiously optimistic about its potential recovery:
  "It's a gargantuan company, the third or fourth largest by revenue, United States, so we wouldn't be a surprise to see it bounce back some."
  (02:30)

The substantial decline indicates underlying issues, yet UnitedHealthcare's market dominance suggests a capacity for turnaround with strategic adjustments.

The Ugly: Centene Corporation

Centene Corporation represents the most concerning performance among the trio, facing severe setbacks in the current year.

• Performance Plummet:
  "Third is Centene Corporation. Centene, exploded in growth over the last decade, became the largest Medicaid managed care company in the country. Just thought it was on a tier and couldn't lose. This year it's getting crushed. It's down 50% year to date."
  (03:00)

• Growth Challenges:
  Centene's impressive growth over the past ten years made it a formidable player in the Medicaid managed care sector. However, this year has proven to be exceptionally tough, with Centene experiencing a drastic 50% decline year-to-date.

Becker's analysis suggests that Centene's rapid expansion may have exposed vulnerabilities, making it susceptible to market fluctuations and operational challenges that have culminated in its significant downturn.

Conclusion

Scott Becker's candid assessment paints a complex picture of the managed care industry in 2025:

• Oscar Health stands out as the bright spot, demonstrating growth and solid leadership.
• UnitedHealthcare faces notable challenges but retains the capacity for recovery given its substantial market presence.
• Centene Corporation grapples with severe declines, highlighting the volatility and competitive pressures within the sector.

Becker underscores the importance of leadership, strategic agility, and market positioning in navigating the turbulent waters of managed care. As the industry continues to evolve, the performances of these companies will be pivotal in shaping the future landscape of healthcare management.

Notable Quotes:

• "It's run by brilliant executive Mark Bertolini, the former CEO of Aetna, a really, really smart person." — Scott Becker (00:55)
• "It's a gargantuan company, the third or fourth largest by revenue, United States, so we wouldn't be a surprise to see it bounce back some." — Scott Becker (02:20)

For more insights and detailed analyses on private equity and business, tune into future episodes of the Becker Private Equity & Business Podcast with Scott Becker.