8-KRegulation FD

CENTENE CORP 8-K Report, Regulation FD Disclosure (Oct 8, 2014)

Filed October 8, 2014For Securities:CNC

Summary

Centene Corporation (CNC) provided an update on the Affordable Care Act (ACA) annual Health Insurer Fee (HIF) reimbursement status as of September 30, 2014. The company has secured signed agreements from 15 out of 17 applicable states, covering approximately 64% of the reimbursable fee, including the tax gross-up. These reimbursements are being recognized as revenue on a straight-line basis. The remaining unrecognized fee is primarily associated with Texas operations, for which Centene anticipates receiving a signed agreement in the fourth quarter of 2014. The company reiterated its confidence in obtaining agreements from all ongoing states for substantially all of the HIF impact on a grossed-up basis, consistent with its previously issued 2014 guidance.

Key Highlights

  • 1Centene has secured HIF reimbursement agreements from 15 of 17 applicable states as of September 30, 2014.
  • 2The secured agreements cover approximately 64% of the total reimbursable HIF.
  • 3Reimbursements are recognized as revenue on a straight-line basis.
  • 4The majority of the unrecognized HIF relates to Texas operations, with an expected agreement in Q4 2014.
  • 5Centene expects to receive agreements for substantially all HIF impacts on a grossed-up basis from all ongoing states.
  • 6This update is consistent with the company's previously issued 2014 financial guidance.

Frequently Asked Questions

The Health Insurer Fee (HIF) is an annual fee imposed on health insurance providers under the Affordable Care Act (ACA). Centene, as a health insurer, is subject to this fee and is seeking reimbursement from applicable states to offset its cost, including the associated tax effects.

As of September 30, 2014, Centene had signed agreements with 15 out of 17 applicable states, covering about 64% of the total reimbursable fee. They anticipate receiving the remaining agreement from Texas in the fourth quarter of 2014.

Centene is recognizing the HIF reimbursement as revenue on a straight-line basis for the states where agreements have been signed.

No, this update is consistent with Centene's previous 2014 guidance. The company continues to believe it will secure agreements for substantially all of the HIF impact on a grossed-up basis from all its ongoing states.