8-KMaterial Agreements

CENTENE CORP 8-K Report, Material Agreement (Feb 2, 2006)

Filed February 2, 2006For Securities:CNC

Summary

Centene Corporation (CNC), through its wholly owned subsidiary Managed Health Services Insurance Corp. (MHS), has entered into a new contract with the Wisconsin Department of Health and Family Services for Medicaid and BadgerCare HMO Services. This contract, effective February 1, 2006, replaces a previous agreement and has an initial term through December 31, 2007, with a potential for a one-year renewal. This development is significant as it secures Centene's operations in Wisconsin for these vital government-sponsored healthcare programs for at least the next two years. The prior contract between MHS and the state terminated on January 31, 2006, making this new agreement a critical step in ensuring continuity of services and revenue streams. While the contract includes provisions for mutual termination or termination by either party under specific terms, the immediate focus is on the established operational period. Investors will want to monitor the performance under this new contract and any future renewal discussions.

Key Highlights

  • 1Centene's subsidiary, MHS, secured a new contract for Medicaid and BadgerCare HMO Services in Wisconsin.
  • 2The contract is with the Wisconsin Department of Health and Family Services.
  • 3The agreement is effective as of February 1, 2006.
  • 4The initial contract term runs through December 31, 2007.
  • 5A one-year renewal is possible through mutual agreement.
  • 6This new contract replaces a prior agreement that terminated on January 31, 2006.
  • 7The contract can be terminated by mutual agreement or by either party as specified.

Frequently Asked Questions

This 8-K filing reports on Centene Corporation's subsidiary, MHS, entering into a material definitive agreement with the Wisconsin Department of Health and Family Services for Medicaid and BadgerCare HMO Services.

The initial term of the contract is effective from February 1, 2006, through December 31, 2007. There is an option to renew for an additional one-year period if both parties mutually agree.

This is a continuation of services, as the new contract replaces a prior contract between MHS and the Wisconsin Department of Health and Family Services that terminated on January 31, 2006. It ensures Centene's continued participation in these state healthcare programs.

The contract states that it may be terminated at any time by mutual agreement or by either party under terms specified within the contract. However, the filing primarily focuses on the establishment of the new agreement and its initial term.