ST. LOUIS, July 7, 2011 /PRNewswire/ -- Centene Corporation
(NYSE: CNC) announced today that Kentucky Spirit Health Plan, a
wholly-owned subsidiary of Centene, has executed a contract with
the Kentucky Finance and Administration Cabinet to serve Medicaid
beneficiaries in Kentucky.
Kentucky Spirit Health Plan will be headquartered in Lexington, Ky., and will provide integrated
healthcare services to Medicaid recipients in all regions awarded
by the Commonwealth. The contract has an initial three-year term
with the potential for four one-year extensions.
"We look forward to working with Governor Beshear's
administration to offer the Commonwealth of Kentucky high-quality healthcare at a lower
cost," said Jesse Hunter, Executive
Vice President of Corporate Development and Operating Group
Chairman of Centene. "This contract marks Centene's entry into its
13th state, and we feel it exemplifies the benefits of integrating
our multi-line approach of health and specialty services. We are
proud to continue our successful track record in Medicaid
procurements by being selected to serve in seven regions by the
Commonwealth."
We expect to serve approximately 180,000 members in Kentucky generating annual revenues in excess
of $700 million. The contract is
expected to commence in the fourth quarter of 2011. Updated
financial guidance including this contract award will be provided
during Centene's 2011 second quarter financial results conference
call on July 26, 2011.
"We are gratified to be able to begin serving the Commonwealth
of Kentucky while preserving our
normal margins for a new business," said Michael F. Neidorff, Chairman and Chief
Executive Officer of Centene.
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 State Children's Health Insurance Program
(CHIP), as well as Aged, Blind or Disabled (ABD), Foster Care and long-term care, in addition to
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