Summary
Centene Corporation filed an 8-K on July 8, 2005, to report on material definitive agreements entered into by its subsidiaries. Specifically, two key amendments to state-level managed care contracts were executed, impacting its Healthwave and Coordinated Care programs in Kansas and Indiana, respectively. These amendments, effective July 1, 2005, extend the contracts through June 30, 2006. They also involve adjustments to capitation rates and modifications to the scope of services and operational definitions. For investors, these contract renewals and rate adjustments are crucial as they directly influence Centene's revenue streams and operational stability within these state-specific Medicaid and Children's Health Insurance Program initiatives.
Key Highlights
- 1Centene subsidiary FirstGuard Health Plan Kansas, Inc. amended its Kansas Healthwave contract for Title XIX and Title XXI programs.
- 2The Kansas contract amendment extends the agreement through June 30, 2006, with an effective date of July 1, 2005.
- 3Capitation rates and definitions of 'Medical Services' and 'Medical Services Not Included' were amended in the Kansas contract.
- 4Centene subsidiary Coordinated Care Corporation Indiana, Inc. amended its contract with Indiana's Office of Medical Policy and Planning and Office of the Children’s Health Insurance Program.
- 5The Indiana contract amendment also extends through June 30, 2006, effective July 1, 2005.
- 6The Indiana amendment revises capitation rates, the 'scope of work', and the dispute resolution process.
- 7Both amendments represent material definitive agreements, indicating continued state partnerships for managed care services.