Centene Corporation Subsidiary Awarded Long Term Care Contracts in Arizona; LTC Contracts Awarded for Maricopa and Yuma/LaPaz
May 02 2006 - 2:38PM
Business Wire
Centene Corporation (NYSE: CNC) today announced that its specialty
company subsidiary, CenCorp Health Solutions (CenCorp), has
received notification from the Arizona Health Care Cost Containment
System (AHCCCS) that it has been awarded two managed care program
contracts to provide Long Term Care (LTC) services. The contracts
are awarded for five years beginning October 1, 2006 and include
the geographic service areas of Maricopa and Yuma/LaPaz counties.
Services to low income elderly and physically disabled Arizonans
will be provided by Bridgeway Health Solutions, a member of the
CenCorp family of specialty companies. William N. Scheffel, Centene
Senior Vice President and Chief Executive, Specialty Companies,
stated, "We are proud to be involved with the state of Arizona and
to have been awarded contracts for two of three service areas for
which we applied. We view Arizona's Long Term Care (LTC) program as
a model for the nation. As one of three LTC providers in Maricopa
County (the largest service area with approximately 13,800
recipients) along with receiving a sole source contract in
Yuma/LaPaz area, we consider this award as a very significant
milestone for CenCorp." The Arizona Long Term Care System (ALTCS)
was established in December 1988 through a federal 1115 Medicaid
waiver to provide long term care services to elderly and disabled
persons meeting income and resource requirements and who are at
risk of being institutionalized. ALTCS has a total of over 41,000
enrolled members, 22,400 of whom are elderly and physically
disabled with remaining enrollees served by the state's Division of
Developmental Disabilities. The total annual budget for the ALTCS
program is $1.1 billion in Federal, State and County dollars.
Centene initially estimates that these contracts will generate
total annual revenues of approximately $100 million to $150 million
subject to the timing and transition of members between plans. As
details become available, the Company will provide additional
updates accordingly. The information provided in the fifth
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
May 2, 2006. 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 Centene Corporation
Centene Corporation is a leading multi-line healthcare enterprise
that provides 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, pharmacy benefit management and treatment compliance.
Information regarding Centene is available via the Internet at
www.centene.com.
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