Centene's Texas Subsidiaries Awarded Renewed and Expanded Contracts
ST. LOUIS, Aug. 2, 2011 /PRNewswire via COMTEX/ --
Centene Corporation (NYSE:CNC) today announced its Superior HealthPlan, Inc. and its Superior HealthPlan Network (collectively, "Superior") have been tentatively awarded new contracts by the Texas Health and Human Services Commission (HHSC). Superior retained its existing service areas and products, including:
- Austin (STAR and CHIP)
- Corpus Christi (STAR, STAR+PLUS and CHIP)
- El Paso (STAR and CHIP)
- Lubbock (STAR and CHIP)
- San Antonio (STAR, STAR+PLUS and CHIP)
Superior's statewide Foster Care and CHIP Rural Service Area (RSA) products, as well as its Dallas STAR+PLUS program, will continue under contracts that were previously awarded as part of earlier bid processes. Superior's total membership in Texas as of June 30, 2011 was 470,400.
In addition, the new contract award expands Superior's STAR, STAR+PLUS and CHIP product offerings as follows:
- The new 10 county Hidalgo Service Area (STAR and STAR+PLUS)
- Medicaid RSA West Texas
- Medicaid RSA Central Texas
- Medicaid RSA North-East Texas
- Lubbock (STAR+PLUS)
The total eligible population for Superior's newly awarded service areas and products is expected to exceed 800,000. The new Texas contract is expected to commence late in the first quarter of 2012.
All of these service areas and products will now include the management of the pharmacy benefit for Superior's members. In addition, the state has added inpatient facility services to the managed care structure for the STAR+PLUS program.
Tom Wise, President and Chief Executive Officer of Superior said, "We look forward to continuing to serve the state, our members and our provider network while expanding into additional areas of Texas and delivering quality healthcare programs."
"Centene is pleased to extend our distinctive and personalized healthcare model to this larger population," said Michael Neidorff, Chairman and Chief Executive Officer of Centene, "while ensuring access and continuing to save the state money. Centene has a long and successful history in Texas and we take great pride in expanding our relationship with the state."
"We continue to be pleased with our success on competitive RFPs, particularly our reprocurement expansions in Arizona, Massachusetts and now Texas, as well as recent awards in Kentucky and Louisiana," added Jesse Hunter, Centene's Executive Vice President for Corporate Development and Operating Committee Chair.
Centene reiterates its earnings guidance range for 2011, which incorporates the start-up costs associated with this award.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading multi-line healthcare enterprise that provides programs and related services to the rising number of under-insured and uninsured individuals. Many receive benefits provided under Medicaid, including the Children's Health Insurance Program (CHIP), as well asAged, Blind or Disabled (ABD), Foster Care, long-term
care, other state-sponsored programs and Medicare (Special Needs Plans). Centene's CeltiCare subsidiary offers states unique "exchange-based" and other cost-effective coverage solutions for low-income populations. The company operates local health plans and offers a range of health insurance solutions. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, life and health management, managed vision, telehealth services, and pharmacy benefits management. More information regarding Centene is available at www.centene.com.
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, membership and revenue projections, timing of regulatory contract approval, 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.
SOURCE Centene Corporation