CENTENE SUBSIDIARY MERIDIAN IN MICHIGAN AWARDED CONTRACT TO SERVE DUAL ELIGIBILE MEDICARE AND MEDICAID MEMBERS IN MICHIGAN

Rhea-AI Summary

Centene 's subsidiary, Meridian Health Plan of Michigan, has been selected by the Michigan Department of Health and Human Services to provide integrated Medicare and Medicaid services for dually eligible Michiganders through a Highly Integrated Dual Eligible Special Needs Plan (HIDE SNP). The plan will launch on Jan. 1, 2026, transitioning from the MI Health Link pilot program to MI Coordinated Health.

Meridian is one of nine managed care organizations chosen for this program. It currently serves over 540,000 members in Michigan, including approximately 6,000 MMP members and over 13,500 Medicare Dual Eligible Special Needs (D-SNP) members. The new HIDE SNP product will ensure continuity of care for existing members and enhance services for dual Medicare and Medicaid eligibles.

Positive

• Meridian selected as one of nine managed care organizations for Michigan's HIDE SNP program
• Opportunity to continue serving over 540,000 members in Michigan
• Ensures continuity of care for existing MMP and D-SNP members
• Expands services to more dually eligible Medicare and Medicaid members

Negative

• None.

Insights

Healthcare Policy Analyst

The award of a HIDE SNP contract to Meridian in Michigan represents a significant development in the state's approach to serving dual-eligible Medicare and Medicaid members. This transition from the MI Health Link pilot program to MI Coordinated Health aligns with broader national trends in integrating care for complex populations.

Key implications include:

• Enhanced care coordination for approximately 6,000 current MMP members and potential expansion to over 13,500 D-SNP members
• Improved integration of long-term services and supports, addressing a critical need for this vulnerable population
• Potential for cost savings and better health outcomes through more streamlined service delivery

For Centene, this contract solidifies its position in Michigan's managed care market and demonstrates its ability to adapt to evolving healthcare policy landscapes. The January 1, 2026 launch date provides ample time for implementation, but investors should monitor progress and any potential challenges in the transition.

Financial Analyst

This contract award is a positive development for Centene (CNC), reinforcing its market position in Michigan. Key financial considerations include:

• Potential for revenue growth by retaining existing members and possibly expanding the dual-eligible member base
• Opportunity to leverage existing infrastructure and experience in Michigan, potentially leading to operational efficiencies
• Long-term contract stability, providing predictable revenue streams through 2026 and beyond

While the immediate financial impact may be given the current member base of 6,000 MMP members, the potential to serve over 13,500 D-SNP members represents a significant growth opportunity. Investors should watch for guidance on expected revenue contribution and any capital expenditures required for the transition. The contract also strengthens Centene's diversification strategy across different healthcare programs, which could positively impact its risk profile and valuation multiples.

ST. LOUIS, Oct. 14, 2024 /PRNewswire/ -- Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to helping people live healthier lives, announced today that its subsidiary, Meridian Health Plan of Michigan, Inc. ("Meridian"), has been selected by the Michigan Department of Health and Human Services (MDHHS) to provide highly integrated Medicare and Medicaid services for dually eligible Michiganders through a Highly Integrated Dual Eligible Special Needs Plan (HIDE SNP). The plan will launch on Jan. 1, 2026, when Michigan's MI Health Link pilot program transitions from a Medicare-Medicaid Plan (MMP) to MI Coordinated Health, a HIDE SNP in coordination with the Centers for Medicare and Medicaid Services (CMS).

"With this award, Meridian will continue delivering critical support and care to high-need Michiganders," said Centene Chief Executive Officer, Sarah M. London. "We are honored to have the opportunity to work with MDHHS and CMS to remove barriers to care and connect members with the healthcare, social and community services needed for Michigan's most vulnerable and underserved populations."

Meridian is one of nine managed care organizations selected to deliver high-quality healthcare to Michiganders through the HIDE SNP program. Meridian currently serves more than 540,000 members in Michigan, including approximately 6,000 MMP members and over 13,500 Medicare Dual Eligible Special Needs (D-SNP) members. With CMS sunsetting the MMP product in all states at the end of 2025, Meridian's HIDE SNP product will ensure continuity of care for our members and enhanced care for many others by meeting the needs of those dually eligible for Medicare and Medicaid – integrating long-term services and supports and simplifying services for dual enrollees.

"We look forward to working with the state to continue providing highly integrated care to our more than 540,000 members," said Meridian Plan President, Patty Graham. "Through our partnership with community groups, providers and other community-based health organizations, we are proud to deliver whole health and culturally sensitive solutions."  

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 more than 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 Meridian
Meridian in Michigan provides government-sponsored managed care services to families, children, seniors and individuals with complex medical needs primarily through Medicaid (Meridian), Medicare Advantage and Medicare Prescription Drug Plans (Wellcare), Medicare-Medicaid Plans (MeridianComplete) and the Health Insurance Marketplace (Ambetter from Meridian). Meridian is a Centene Corporation company, a leading healthcare enterprise committed to helping people live healthier lives. For more information about Meridian, please visit mimeridian.com/.

Forward-Looking Statements
All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue" and other similar words or expressions (and the negative thereof). Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our expected contract start dates and terms, our 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; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; 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, 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 or our failure to comply with applicable privacy, data or security laws and regulations; 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

When will Centene's Meridian HIDE SNP plan launch in Michigan?

Centene's Meridian HIDE SNP plan in Michigan is set to launch on January 1, 2026.

How many members does Meridian currently serve in Michigan?

Meridian currently serves over 540,000 members in Michigan, including approximately 6,000 MMP members and over 13,500 Medicare Dual Eligible Special Needs (D-SNP) members.

What is the purpose of Centene's HIDE SNP program in Michigan?

The HIDE SNP program aims to provide highly integrated Medicare and Medicaid services for dually eligible Michiganders, removing barriers to care and connecting members with healthcare, social, and community services.

How many managed care organizations were selected for Michigan's HIDE SNP program?

Nine managed care organizations, including Centene's subsidiary Meridian, were selected to deliver healthcare through the HIDE SNP program in Michigan.