Centene’s Celtic Unit Awarded Contract in Massachusetts to Serve Uninsured Individuals
March 12 2009 - 12:43PM
Business Wire
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.
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