Centene swung to a net loss of over $1 billion in the fourth quarter, marking a reversal from the prior year’s profit. Revenue rose year-over-year, but gains were insufficient to offset the surge in medical expenses.

The loss was primarily attributed to higher claim costs and utilization in Centene’s government-subsidized plans, where inflation in medical services and pharmaceuticals accelerated spending. Management cited persistently elevated inpatient and specialty drug expenses as key drivers.

Centene is scheduled to report first-quarter results before markets open on Feb. 6. Ahead of the release, Wall Street’s most accurate analysts have revised forecasts, reflecting mixed expectations on revenue growth and margin recovery.