CENTENE SUBSIDIARY HEALTH NET SELECTED FOR CALIFORNIA MEDICAID DENTAL AWARD IN LOS ANGELES AND SACRAMENTO COUNTIES

Rhea-AI Summary

Centene announced that its subsidiary, Health Net Community Solutions, has been selected by the California Department of Health Care Services to provide managed dental health care services to Medi-Cal beneficiaries in Los Angeles and Sacramento counties. The new 54-month contract is set to begin on July 1, 2025.

Health Net currently serves nearly 385,000 members in these counties with over 1,000 dental providers. The company serves a total of nearly 2.2 million Californians, including more than 1.5 million Medi-Cal members. Health Net is one of three managed care organizations chosen to provide dental services through Medi-Cal and is the only plan in Los Angeles and Sacramento counties offering both medical and dental coverage.

Positive

• Secured a new 54-month contract for dental services in Los Angeles and Sacramento counties
• Health Net serves nearly 385,000 dental members in the awarded counties
• Health Net is the only Medi-Cal plan in the awarded counties offering both medical and dental coverage
• Total service to 2.2 million Californians, including 1.5 million Medi-Cal members

Negative

• None.

ST. LOUIS, Sept. 23, 2024 /PRNewswire/ -- Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to helping people live healthier lives, announced today that the California Department of Health Care Services has selected its subsidiary, Health Net Community Solutions (Health Net), to provide managed dental health care services to beneficiaries of Medi-Cal, the State's Medicaid program, in Los Angeles and Sacramento counties. The new 54-month contract is expected to take effect on July 1, 2025.

With over 1,000 dental providers, Health Net delivers comprehensive dental care to nearly 385,000 members in Los Angeles and Sacramento counties. In total, Health Net currently serves the health care needs of nearly 2.2 million Californians, including more than 1.5 million Medi-Cal members. Through its whole-person model that directly addresses social drivers of health, Health Net is working to reduce health disparity gaps, improve outcomes and enhance access to quality care for communities across the state. With this award, Health Net is one of three managed care organizations selected to provide dental services through Medi-Cal. 

"Centene appreciates our long and successful partnership with the state of California," said Centene Chief Executive Officer (CEO), Sarah M. London. "We're grateful for the opportunity to continue to support the dental health needs of Medi-Cal members through Health Net's new contract." 

Health Net is currently the only Medi-Cal plan in Los Angeles and Sacramento counties that offers both medical and dental coverage.

"Health Net is honored to have been selected to continue our partnership with the State of California, delivering comprehensive and coordinated dental care to our members in Los Angeles and Sacramento counties," said Health Net Plan President and CEO, Brian Ternan. "We remain committed to improving the health of the communities we serve and look forward to providing these essential dental services."

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 and the TRICARE program. The Company also 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, http://investors.centene.com/. 

About Health Net
Founded in California more than 40 years ago, Health Net believes that every person deserves a safety net for their health, regardless of age, income, employment status or current state of health. Today, we provide health plans for individuals, families, businesses of every size and people who qualify for Medi-Cal or Medicare. Together with our 90,000 network providers, Health Net serves nearly 2.2 million members across the state. We also offer access to substance abuse programs, behavioral health services, employee assistance programs and managed health care products related to prescription drugs. We make these health plans and services available through Health Net, LLC and its subsidiaries: Health Net Life Insurance Company and Health Net Community Solutions, Inc. These entities are wholly owned subsidiaries of Centene Corporation, a leading healthcare enterprise committed to helping people live healthier lives. Health Net and Centene employ more than 6,300 people in California who work at one of five regional Talent Hub offices. For more information, visit www.HealthNet.com.  

Forward-Looking Statements
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In particular, these statements include, without limitation, statements about our expected contract start dates and terms, future operating or financial performance, market opportunity, competition, expected activities in connection with completed 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 design and price products that are competitive and/or actuarially sound including but not limited to any impacts resulting from Medicaid redeterminations; 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; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical utilization rates; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and provide for operational resources to maintain service level requirements; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third parties; impairments to real estate, investments, goodwill, and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; rate cuts or other payment reductions or delays by governmental payors and other risks and uncertainties affecting our government businesses; changes in healthcare practices, new technologies, and advances in medicine; increased healthcare costs; inflation and interest rates; the effect of social, economic, and political conditions and geopolitical events, including as a result of changes in U.S. presidential administrations or Congress; changes in 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; uncertainty concerning government shutdowns, debt ceilings or funding; tax matters; disasters, climate-related incidents, acts of war or aggression or major epidemics; changes in expected contract start dates and terms; changes in provider, broker, vendor, state, federal, foreign, and other contracts and delays in the timing of regulatory approval of contracts, including due to protests; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare or other customers); the difficulty of predicting the timing or outcome of legal or regulatory audits, investigations, proceedings or matters, including, but not limited to, our ability to resolve claims and/or allegations made by states with regard to past practices on acceptable terms, or at all, or whether additional claims, reviews or investigations will be brought by states, the federal government or shareholder litigants, or government investigations; challenges to our contract awards; cyber-attacks or other 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 terms of our contracts and 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, or accretion for acquisitions or dispositions; losses in our investment portfolio; restrictions and limitations in connection with our indebtedness; a downgrade of our corporate family rating, issuer rating or credit rating of our indebtedness; the availability of debt and equity financing on terms that are favorable to us and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission (SEC). 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 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 new contract did Centene's subsidiary Health Net win in California?

Health Net Community Solutions was selected to provide managed dental health care services to Medi-Cal beneficiaries in Los Angeles and Sacramento counties for a 54-month contract starting July 1, 2025.

How many dental providers does Health Net (CNC) have in the awarded California counties?

Health Net has over 1,000 dental providers serving nearly 385,000 members in Los Angeles and Sacramento counties.

When will Centene's (CNC) new Medi-Cal dental contract in California begin?

The new 54-month contract for Medi-Cal dental services in Los Angeles and Sacramento counties is expected to take effect on July 1, 2025.

How many Medi-Cal members does Health Net (CNC) currently serve in California?

Health Net currently serves more than 1.5 million Medi-Cal members in California.