Centene Corporation Announces Texas Foster Care Contract Award
Superior HealthPlan Network to Serve Approximately 33,000 Children
ST. LOUIS--(BUSINESS WIRE)--March 13, 2007--Centene Corporation (NYSE: CNC) today announced that its Texas subsidiary, Superior HealthPlan Network (Superior Network), finalized the contractual terms of the Comprehensive Health Care for Children in Foster Care program award with the Texas Health and Human Services Commission (HHSC). This statewide program will provide managed care services to participants in the Texas foster care program.
Michael F. Neidorff, Chairman and Chief Executive Officer of Centene Corporation, stated, "The selection of Superior Network to serve foster care recipients in Texas is significant, and we view this as an opportunity to positively impact the special health needs of these children. By providing and coordinating healthcare services for HHSC, we can offer a greater degree of accountability for the health outcomes of foster care children as they move from one placement to another."
Christopher D. Bowers, Chief Executive Officer and President, Superior HealthPlan, and Acting Head of Health Plan Business Unit, stated, "We believe the system that we have designed to care for these children will allow the State to advance its health care delivery to a new dimension in foster care. For example, we will implement a state-of-the-art health passport system to allow children's health records to follow them. We believe this will promote continuity of care and eliminate the need for duplication of services."
As of December 31, 2006 Superior Network served 79,700 recipients under the Texas Children's Health Insurance Plan and will begin managing care under this new contract effective October 1, 2007. Superior HealthPlan, Inc., Superior Network's sister plan in Texas, currently serves 218,800 recipients under the Texas Medicaid and CHIP Program.
Superior expects to incur start-up costs that will reduce 2007 second and third quarter earnings by $0.02 and $0.07 respectively, while the program will be $0.03 to $0.04 accretive in the 2007 fourth quarter.
The information provided in this press release contains forward-looking statements that relate to future events and future financial performance of Centene. Subsequent events and developments may cause the Company's estimates to change. The Company disclaims any obligation to update this forward-looking financial information in the future. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause Centene's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Actual results may differ from projections or estimates due to a variety of important factors, including Centene's ability to accurately predict and effectively manage health benefits and other operating expenses, competition, changes in healthcare practices, changes in federal or state laws or regulations, inflation, provider contract changes, new technologies, reduction in provider payments by governmental payors, major epidemics, disasters and numerous other factors affecting the delivery and cost of healthcare. The expiration, cancellation or suspension of Centene's Medicaid managed care contracts by state governments would also negatively affect Centene.
About Centene Corporation
Centene Corporation is a leading multi-line healthcare enterprise that provides programs and related services to individuals receiving benefits under Medicaid, including Supplemental Security Income (SSI) and the State Children's Health Insurance Program (SCHIP). The Company operates health plans in Georgia, Indiana, New Jersey, Ohio, Texas and Wisconsin. In addition, the Company contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, disease management, long-term care, managed vision, nurse triage, pharmacy benefit management and treatment compliance. Information regarding Centene is available via the Internet at www.centene.com.
About SuperiorHealthPlan Network
Superior HealthPlan Network is an exclusive provider organization that has been operating in Texas since 2004. Superior Network is a wholly-owned subsidiary of Centene Corporation..
About Superior HealthPlan, Inc.
Superior HealthPlan, Inc. is a health maintenance organization that has been providing services in Texas since 1999. Superior HealthPlan, Inc. is a wholly-owned subsidiary of Centene Corporation. Information regarding Superior is available via the Internet at www.superiorhealthplan.com.
CONTACT: Centene Corporation
Lisa M. Wilson, 212-759-3929
Senior Vice President, Investor Relations
Robert J. Schenk, 314-725-4477
Vice President, Corporate Marketing and Communications
SOURCE: Centene Corporation