Centene Corporation Subsidiary Awarded Additional Medicaid Contract in Georgia
ST. LOUIS--(BUSINESS WIRE)--Aug. 22, 2005-- Peach State Health Plan to Serve Three Regions With 780,000 Total Eligibles
Centene Corporation (NYSE: CNC) today announced that it has been awarded an additional Medicaid contract for the Southwest Region by the Georgia Department of Community Health. Centene's Georgia subsidiary, Peach State Health Plan (PSHP), will manage a portion of the approximately 130,000 Medicaid eligible recipients in this region. The contract was signed and fully executed on August 19, 2005 with the state of Georgia. Additionally, the state has presented actuarially sound rates which the Company has reviewed and accepted.
The contract for the Southwest Region, which includes the cities of Albany and Valdosta, becomes effective immediately with PSHP membership operations commencing December 1, 2006. The initial contract runs through June 30, 2006, and is then subject to six, one-year renewal options.
On July 19, PSHP was initially awarded the Atlanta and Central Regions, with approximately 650,000 eligibles. The Southwest Region was subsequently awarded to PSHP upon the discovery of an error in the calculation of scores by the Georgia Department of Administrative Services. Questions regarding the process by which the Medicaid contracts were awarded or the ongoing program should be directed to the state.
Michael F. Neidorff, Chairman and Chief Executive Officer of Centene, stated, "Our Georgia subsidiary, Peach State Health Plan, is focused on providing healthcare benefits and services to Medicaid and PeachCare for Kids recipients in the Atlanta, Central and Southwest Regions. We consider the opportunity to serve this population in the state of Georgia as fulfilling a critical need -- providing care to those who need it most."
As previously disclosed, Centene's 2005 guidance was revised to reflect an estimated $7.5 to $10.0 million in implementation costs related to the Georgia contract awards. The December 2006 effective date for the Southwest region will not affect this guidance.
About Centene Corporation
Centene Corporation provides multi-line managed care 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 Indiana, Kansas, Missouri, New Jersey, Ohio, Texas and Wisconsin. In addition, the Company contracts with other healthcare organizations to provide specialty services including behavioral health, disease management, nurse triage and treatment compliance. Information regarding Centene is available via the Internet at www.centene.com and www.pshpgeorgia.com.
CONTACT: Centene Corporation Lisa M. Wilson, 212-759-3929 or Robert J. Schenk, 314-725-4477 SOURCE: Centene Corporation
Released August 22, 2005