Centene Corporation Notified of Possible Delay of Texas Foster Care Contract
Superior HealthPlan Network Possibly Delayed Until 2008
ST. LOUIS--(BUSINESS WIRE)--
Centene Corporation (NYSE: CNC) today announced that its Texas subsidiary, Superior HealthPlan Network (Superior), has been informed by the Texas Health and Human Services Commission (HHSC) of its intent to delay the Comprehensive Health Care for Children in Foster Care program. The HHSC indicated that the program would likely begin in 2008. 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, "Our subsidiary, Superior HealthPlan Network, is pleased to partner with Texas on this important initiative. We are anxious to get this program underway given our continued focus on positively impacting 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 these foster care children."
As of March 31, 2007 Superior Network served 77,396 recipients under the Texas Children's Health Insurance Plan and was set to begin managing care under this new contract on October 1, 2007. Superior HealthPlan, Inc., Superior Network's sister plan in Texas currently serves 235,013 recipients under the Texas Medicaid and CHIP Program.
J. Per Brodin, Centene Senior Vice President and Chief Financial Officer, stated, "If the state delays the implementation of this program, we will not achieve the 3-4 cents of 2007 fourth quarter earnings accretion previously expected. We are having discussions with the state to determine when they will most realistically be ready for implementation which will enable us to properly estimate the impact this has on our start-up costs. The longer term benefit of this program to the children and Centene is unchanged."
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 Arizona., 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, health 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.
Superior HealthPlan (Superior) is a health maintenance organization that has been providing services in Texas since 1999. Superior is a wholly-owned subsidiary of Centene Corporation, a leading multi-line healthcare enterprise offering both core Medicaid and specialty services. Information regarding Superior is available via the Internet at www.superiorhealthplan.com.
Source: Centene Corporation
Released June 19, 2007