Centene's Texas Subsidiary Announces Successful Reprocurement of Foster Care Contract

Rhea-AI Summary

Centene Corporation (NYSE: CNC) announced that its Texas subsidiary, Superior HealthPlan, has been awarded a new six-year contract to provide healthcare coverage for children and youth in foster care through the STAR Health Medicaid program. Superior has held this role since the program's inception in 2008. The contract aims to enhance healthcare access for this vulnerable population by coordinating services to meet their complex medical and non-medical needs.

Positive

• Awarded a new six-year contract for STAR Health Medicaid program in Texas.
• Continues to be the sole provider of STAR Health coverage since 2008.
• Collaborative approach to healthcare with local providers.

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• None.

ST. LOUIS, Sept. 15, 2022 /PRNewswire/ -- Centene Corporation (NYSE: CNC) announced today that its Texas subsidiary, Superior HealthPlan (Superior), will continue to provide children and youth in foster care with healthcare coverage through the STAR Health Medicaid program. A new six-year contract was awarded to Superior by the Texas Health and Human Services Commission (HHSC). Superior has been the sole provider of STAR Health coverage since the program launched in 2008.

"We are pleased to continue our partnership with the state to help build a healthier Texas," said Brent Layton, Centene's President and Chief Operating Officer. "Together with our network of local providers and community partners, we are humbled to coordinate services and address the complex medical and non-medical needs of members in the foster care system."

In collaboration with Texas HHSC and the Department of Family & Protective Services, Superior became the first managed care organization in the country in 2008 to provide statewide Medicaid coverage to children in foster care. Since that time, Superior has relied on a collaborative approach to healthcare, spearheading several initiatives to better serve these members, including Superior's Foster Care Center of Excellence program, the Health Passport tool, and the Turning Point Program.

"Superior is honored to be entrusted with providing comprehensive healthcare and support to children and youth in foster care," said Mark Sanders, President and CEO of Superior HealthPlan. "For 14 years, we have served this vulnerable population and will continue to work each day to ensure they receive access to quality and holistic healthcare."

In partnership with HHSC, Superior has served individuals enrolled in Medicaid since 1999. The organization also focuses on providing quality healthcare coverage for underinsured and uninsured individuals through its federal insurance marketplace plan, Ambetter. Additionally, Superior provides insurance for the Medicare population through its Medicare Advantage plan, Wellcare.

About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to nearly 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace, the TRICARE program, and individuals in correctional facilities. The Company also serves several international markets, and contracts with other healthcare and commercial organizations to provide a variety of specialty services focused on treating the whole person. Centene focuses on long-term growth and value creation as well as the development of its people, systems, and capabilities so that it can better serve its members, providers, local communities, and government partners.

Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, https://investors.centene.com/.

Forward-Looking Statements
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In particular, these statements include, without limitation, statements about our future operating or financial performance, market opportunity, value creation strategy, competition, expected activities in connection with completed and future acquisitions and dispositions, including statements about the impact of our recently completed acquisition of Magellan Health, Inc. (the Magellan Acquisition), other recent and future acquisitions and dispositions, our investments and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive and other factors that may cause our or our 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. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables and events including, but not limited to: our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical utilization rates due to the ongoing impact of COVID-19; the risk that the election of new directors, changes in senior management, and any inability to retain key personnel may create uncertainty or negatively impact our ability to execute quickly and effectively;  uncertainty as to the expected financial performance of the combined company following the recent completion of the Magellan Acquisition; the possibility that the expected synergies and value creation from the Magellan Acquisition or the acquisition of WellCare Health Plans, Inc. (the WellCare Acquisition) or other acquired businesses will not be realized, or will not be realized within the respective expected time periods; disruption from the integration of the Magellan Acquisition or the WellCare Acquisition, unexpected costs, or similar risks from other acquisitions or dispositions we may announce or complete from time to time, including potential adverse reactions or changes to business relationships with customers, employees, suppliers or regulators, making it more difficult to maintain business and operational relationships; the risk that the closing conditions, including applicable regulatory approvals, for the pending dispositions of Magellan Rx and our Spanish and Central European businesses, may be delayed or not obtained; impairments to real estate, investments, goodwill and intangible assets; a downgrade of the credit rating of our indebtedness; competition; membership and revenue declines or unexpected trends; changes in healthcare practices, new technologies, and advances in medicine; increased healthcare costs; changes in economic, political or market conditions; changes in federal or state laws or regulations, including changes with respect to income tax reform or government healthcare programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act (collectively referred to as the ACA) and any regulations enacted thereunder that may result from changing political conditions, the new administration or judicial actions; rate cuts or other payment reductions or delays by governmental payors and other risks and uncertainties affecting our government businesses; our ability to adequately price products; tax matters; disasters or major epidemics; changes in expected contract start dates; provider, state, federal, foreign and other contract changes and timing of regulatory approval of contracts; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare, TRICARE or other customers); the difficulty of predicting the timing or outcome of legal or regulatory proceedings or matters, including, but not limited to, our ability to resolve claims and/or allegations made by states with regard to past practices, including at Envolve Pharmacy Solutions, Inc. (Envolve), as our pharmacy benefits manager (PBM) subsidiary, within the reserve estimate we recorded in 2021 and on other acceptable terms, or at all, or whether additional claims, reviews or investigations relating to our PBM business will be brought by states, the federal government or shareholder litigants, or government investigations; the timing and extent of benefits from strategic value creation initiatives, including the possibility that these initiatives will not be successful, or will not be realized within the expected time periods; challenges to our contract awards; cyber-attacks or other privacy or data security incidents; the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the undertakings in connection with any regulatory, governmental or third party consents or approvals for acquisitions or dispositions; any changes in expected closing dates, estimated purchase price and accretion for acquisitions or dispositions; restrictions and limitations in connection with our indebtedness; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that can impact revenue and future growth; the availability of debt and equity financing on terms that are favorable to us; inflation; foreign currency fluctuations; and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission. This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other factors that may affect our business operations, financial condition and results of operations, in our filings with the Securities and Exchange Commission (SEC), including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical and selling, general and administrative costs.

 

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SOURCE Centene Corporation

FAQ

What recent contract did Centene's Texas subsidiary win?

Centene's Texas subsidiary, Superior HealthPlan, won a new six-year contract to provide healthcare coverage for foster care children under the STAR Health Medicaid program.

How long has Superior HealthPlan been providing STAR Health coverage?

Superior HealthPlan has been providing STAR Health coverage since the program's launch in 2008.

What is the significance of the STAR Health Medicaid program for Centene?

The STAR Health Medicaid program is significant for Centene as it supports continued healthcare access for children and youth in foster care, enhancing the company's service impact in Texas.

What services does Superior HealthPlan offer under the new contract?

Under the new contract, Superior HealthPlan will coordinate healthcare services to address the complex medical and non-medical needs of children and youth in foster care.