22.08.2005 11:00:00
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Centene Corporation Subsidiary Awarded Additional Medicaid Contract in Georgia
Centene Corporation (NYSE: CNC) today announced that it has beenawarded an additional Medicaid contract for the Southwest Region bythe Georgia Department of Community Health. Centene's Georgiasubsidiary, Peach State Health Plan (PSHP), will manage a portion ofthe approximately 130,000 Medicaid eligible recipients in this region.The contract was signed and fully executed on August 19, 2005 with thestate of Georgia. Additionally, the state has presented actuariallysound rates which the Company has reviewed and accepted.
The contract for the Southwest Region, which includes the citiesof Albany and Valdosta, becomes effective immediately with PSHPmembership operations commencing December 1, 2006. The initialcontract runs through June 30, 2006, and is then subject to six,one-year renewal options.
On July 19, PSHP was initially awarded the Atlanta and CentralRegions, with approximately 650,000 eligibles. The Southwest Regionwas subsequently awarded to PSHP upon the discovery of an error in thecalculation of scores by the Georgia Department of AdministrativeServices. Questions regarding the process by which the Medicaidcontracts were awarded or the ongoing program should be directed tothe state.
Michael F. Neidorff, Chairman and Chief Executive Officer ofCentene, stated, "Our Georgia subsidiary, Peach State Health Plan, isfocused on providing healthcare benefits and services to Medicaid andPeachCare for Kids recipients in the Atlanta, Central and SouthwestRegions. We consider the opportunity to serve this population in thestate of Georgia as fulfilling a critical need -- providing care tothose who need it most."
As previously disclosed, Centene's 2005 guidance was revised toreflect an estimated $7.5 to $10.0 million in implementation costsrelated to the Georgia contract awards. The December 2006 effectivedate for the Southwest region will not affect this guidance.
About Centene Corporation
Centene Corporation provides multi-line managed care programs andrelated services to individuals receiving benefits under Medicaid,including Supplemental Security Income (SSI) and the State Children'sHealth Insurance Program (SCHIP). The Company operates health plans inIndiana, Kansas, Missouri, New Jersey, Ohio, Texas and Wisconsin. Inaddition, the Company contracts with other healthcare organizations toprovide specialty services including behavioral health, diseasemanagement, nurse triage and treatment compliance. Informationregarding Centene is available via the Internet at www.centene.com andwww.pshpgeorgia.com.
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