Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.5.0.2
Segment Information
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information

Centene operates in two segments: Managed Care and Specialty Services.  

The Managed Care segment consists of Centene’s health plans including all of the functions needed to operate them. Subsequent to the closing of the Health Net acquisition, the Managed Care segment also includes the operations previously included in Health Net's Western Region Operations Segment, with the exception of certain operations of its pharmaceutical services and behavioral health subsidiaries. The portions of Health Net's Western Region Operations segment included in the Managed Care segment consist of the following Health Net operations: commercial, Medicare, Medicaid and dual eligible health plans, primarily in Arizona, California, Oregon and Washington.

The Specialty Services segment consists of Centene’s specialty companies offering auxiliary healthcare services and products. Subsequent to the closing of the Health Net acquisition, the Specialty Services segment also includes the operations previously included in the Government Contracts segment of Health Net as well as certain operations of its pharmaceutical services and behavioral health subsidiaries, the latter of which Health Net previously included in its Western Region Operations segment. The Government Contracts business includes the Company's government-sponsored managed care support contract with the DoD under the TRICARE program in the North Region, the MFLC contract with the DoD, and other health care related government contracts, including PC3/Choice with the VA.

Segment information for the three months ended September 30, 2016, follows ($ in millions):
 
Managed Care
 
Specialty
Services
 
Eliminations
 
Consolidated
Total
Total revenues from external customers
$
10,010

 
$
836

 
$

 
$
10,846

Total revenues from internal customers
55

 
1,525

 
(1,580
)
 

Total revenues
$
10,065

 
$
2,361

 
$
(1,580
)
 
$
10,846

Earnings from operations
$
304

 
$
38

 
$

 
$
342


Segment information for the three months ended September 30, 2015, follows ($ in millions):
 
Managed Care
 
Specialty
Services
 
Eliminations
 
Consolidated
Total
Total revenues from external customers
$
5,278

 
$
543

 
$

 
$
5,821

Total revenues from internal customers
23

 
1,274

 
(1,297
)
 

Total revenues
$
5,301

 
$
1,817

 
$
(1,297
)
 
$
5,821

Earnings from operations
$
138

 
$
45

 
$

 
$
183



Segment information for the nine months ended September 30, 2016, follows ($ in millions):
 
Managed Care
 
Specialty
Services
 
Eliminations
 
Consolidated
Total
Total revenues from external customers
$
26,439

 
$
2,257

 
$

 
$
28,696

Total revenues from internal customers
143

 
4,384

 
(4,527
)
 

Total revenues
$
26,582

 
$
6,641

 
$
(4,527
)
 
$
28,696

Earnings from operations
$
618

 
$
121

 
$

 
$
739


Segment information for the nine months ended September 30, 2015, follows ($ in millions):
 
Managed Care
 
Specialty
Services
 
Eliminations
 
Consolidated
Total
Total revenues from external customers
$
14,857

 
$
1,601

 
$

 
$
16,458

Total revenues from internal customers
73

 
3,525

 
(3,598
)
 

Total revenues
$
14,930

 
$
5,126

 
$
(3,598
)
 
$
16,458

Earnings from operations
$
358

 
$
127

 
$

 
$
485



As discussed in Note 3. Health Net, the assignment of goodwill to the Company's segments has not been completed at this time. The Company will update segment asset disclosures once an allocation is finalized.