8-KMaterial Agreements

CENTENE CORP 8-K Report, Material Agreement (Jan 8, 2007)

Filed January 8, 2007For Securities:CNC

Summary

Centene Corporation (CNC) filed this Form 8-K on January 8, 2007, to report on material definitive agreements entered into by its subsidiaries. The most significant development is the contract secured by Coordinated Care Corporation Indiana, Inc. with the Indiana Family and Social Services Administration. This contract, effective January 1, 2007, will provide statewide Medicaid managed care services to a portion of eligible Hoosier Healthwise members. The initial term extends through December 31, 2010, with potential for a two-year extension, though the state retains termination rights. Additionally, Centene's subsidiary, Managed Health Services Insurance Corp., amended its contract with the Wisconsin Department of Health and Family Services for Medicaid and BadgerCare HMO Services. This amendment, also effective January 1, 2007, notably adjusts the applicable capitation rates. The contract runs through December 31, 2007, with an option for mutual renewal for an additional year. These agreements represent important expansions and adjustments to Centene's managed care operations in key states, impacting its revenue and operational footprint in the Medicaid sector.

Key Highlights

  • 1Centene subsidiary, Coordinated Care Corporation Indiana, Inc., secured a statewide Medicaid managed care contract with Indiana for Hoosier Healthwise members, effective January 1, 2007.
  • 2The Indiana contract has an initial term through December 31, 2010, with an option for a two-year extension at the state's discretion.
  • 3The Indiana contract allows the state to terminate the agreement at any time under specified terms.
  • 4Centene subsidiary, Managed Health Services Insurance Corp., amended its Medicaid and BadgerCare HMO Services contract with Wisconsin.
  • 5The Wisconsin contract amendment, effective January 1, 2007, includes changes to applicable capitation rates.
  • 6The Wisconsin contract continues through December 31, 2007, with a mutual renewal option for one additional year.
  • 7The Wisconsin agreement can be terminated by mutual agreement or by either party under specified terms.

Frequently Asked Questions

Centene announced two key agreements: a new statewide Medicaid managed care contract in Indiana for Hoosier Healthwise members, and an amendment to its existing Medicaid and BadgerCare HMO Services contract in Wisconsin.

The Indiana contract is effective from January 1, 2007, with an initial term through December 31, 2010. It also includes an option for the state to extend the contract for up to two additional years. The exact financial value is not specified in the filing, but it covers a portion of eligible Hoosier Healthwise members statewide.

Yes, the amendment to the Wisconsin contract, effective January 1, 2007, includes changes to the applicable capitation rates. The contract term continues through December 31, 2007, with an option for a one-year mutual renewal.

In Indiana, the state has the right to terminate the contract at any time under specified terms. In Wisconsin, the agreement can be terminated by mutual agreement or by either party under the contract's terms. This indicates varying levels of termination flexibility for Centene depending on the specific state agreement.