ST. LOUIS--(BUSINESS WIRE)--Mar. 12, 2009--
Centene Corporation (NYSE: CNC) today announced its wholly-owned
subsidiary, Celtic Group Inc. (Celtic), through a joint venture with
Caritas Christi Health Care (Caritas), was awarded a contract to manage
healthcare services for Commonwealth Care members in Massachusetts.
Effective July 1, 2009, the two entities will serve the Central,
Northern, Boston and Southern regions operating as Commonwealth Family
Health Plan.
The Massachusetts Commonwealth Care program is a health
insurance program for low-income, working adults (up to 300% of the
Federal Poverty Level) who are not eligible for Medicaid or
employer-sponsored insurance. There are approximately 165,000
Commonwealth Care members.
Michael F. Neidorff, Chairman and Chief Executive Officer for Centene,
stated, "We are pleased to help provide comprehensive healthcare
services to individuals who lack access to traditional public or private
health insurance coverage. This new, innovative managed care solution
validates the strategic rationale for our Celtic acquisition and
leverages local provider relationships, national managed care experience
and Celtic’s invaluable experience with the individual health insurance
market.”
Frederick J. Manning, Executive Vice President for Centene and Chief
Executive Officer for Celtic, stated, "We are committed to provide a
managed care solution for the underserved communities in Massachusetts.
By promoting the medical home and preventive care, our new health plan
will successfully deliver better health outcomes for the citizens of
Massachusetts. Consistent with our philosophy that quality healthcare is
best delivered locally, our health plan will hire local staff to meet
the needs of the members and communities we will serve.”
The health plan implementation process is underway. We anticipate a
build of the membership to start in July, and by fourth quarter 2010, we
expect annual run rate revenue of $100 to $125 million. We intend to
consolidate the financial operations of the joint venture. Additional
detail on the start-up cost, timing and impact to 2009 earnings will be
addressed on Centene’s first quarter earnings call.
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 the Children’s Health Insurance Program
(CHIP), as well as Aged, Blind, or Disabled (ABD), Foster
Care, Long-Term Care and Medicare (Special Needs Plans). The Company
operates local health plans and offers a wide range of health insurance
solutions to individuals and the rising number of uninsured
Americans. It also contracts with other healthcare and commercial
organizations to provide specialty services including behavioral health,
life and health management, managed vision, telehealth services,
pharmacy benefits management and medication adherence. Information
regarding Centene is available via the Internet at www.centene.com.
Source: Centene Corporation
Centene Corporation
Edmund E. Kroll, Jr.
Senior Vice
President, Finance and Investor Relations
212-759-0382
or
Sandy
McBride
Senior Director, Corporate Communications
314-725-4477
