Centene Corporation Subsidiary Expected to Expand Operations in Texas
ST. LOUIS--(BUSINESS WIRE)--July 8, 2005--Centene Corporation (NYSE: CNC) today announced that the state of Texas has tentatively awarded contracts to its subsidiary, Superior HealthPlan, Inc. (Superior), to serve Medicaid (STAR) and Children's Health Insurance Program (CHIP) members in all existing service areas. In addition, tentative contracts have been awarded to Superior to serve both STAR and CHIP members in the Corpus Christi service area. Superior currently serves San Antonio, El Paso, Austin (STAR only) and Lubbock (CHIP only).
Chris Bowers, President and Chief Executive Officer of Superior, stated, "We are pleased to be given the opportunity to add to Superior's service areas given our focus on expanding quality healthcare in Texas. Furthermore, the removal of the Primary Care Case Management (PCCM) model in Lubbock, El Paso and San Antonio is consistent with our expectations."
The contracts are expected to be finalized on or before August 17, 2005 and become effective July 1, 2006. PCCM is scheduled to be withdrawn from the urban service areas of Lubbock, El Paso and San Antonio beginning July 1, 2006 with complete withdrawal by December 1, 2006.
Michael F. Neidorff, Centene's Chairman and Chief Executive Officer, added, "The commitment of Centene and Superior is to develop and manage, through a local presence, a system of care that is accountable, produces demonstrated cost savings and is optimally responsive to the needs of Medicaid and CHIP consumers. These goals reflect Centene's core values and confirm our belief that we can collaborate with states to move more of these recipients into effective managed care programs."
The information provided in the third paragraph above contains forward-looking statements that relate to future events and future financial performance of Centene. These forward-looking statements represent the Company's estimates as of July 8, 2005. 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 payers, 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 Superior HealthPlan
Superior HealthPlan, Inc. (Superior) was formed in 1997 as a joint venture between Centene Corporation and Community Health Centers Network, L.P. Superior currently serves 243,700 members in Texas. Additional information is available at www.superiorhealthplan.com
About Centene Corporation
Centene 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, nurse triage and pharmacy compliance. Information regarding Centene is available via the Internet at www.centene.com.
CONTACT: Centene Corporation Robert J. Schenk, 314-725-4477 Website: www.centene.com SOURCE: Centene Corporation