8-KMaterial Agreements

CENTENE CORP 8-K Report, Material Agreement (Jan 2, 2015)

Filed January 2, 2015For Securities:CNC

Summary

Centene Corporation (CNC) has filed an 8-K reporting a material definitive agreement entered into by its subsidiary, Superior HealthPlan Inc., with the Texas Health and Human Services Commission on December 30, 2014. This agreement addresses the reimbursement of the Affordable Care Act (ACA) annual Health Insurer Fee (HIF) and associated tax gross-up for the company's Texas operations. This development is significant as it ensures that Centene will be reimbursed for the full amount of the applicable 2014 ACA Health Insurer Fee related to its Texas business. The reimbursement will be recognized in the fourth quarter of 2014. This agreement provides clarity and financial certainty regarding a notable cost associated with operating under the ACA in Texas, which is positive for the company's profitability and cash flow in the reporting period.

Key Highlights

  • 1Centene's subsidiary, Superior HealthPlan Inc., entered into a material definitive agreement with the Texas Health and Human Services Commission.
  • 2The agreement, signed on December 30, 2014, covers reimbursement for the ACA annual Health Insurer Fee (HIF).
  • 3It also includes reimbursement for the related tax gross-up.
  • 4The agreement specifically applies to Centene's Texas operations.
  • 5The full amount of the 2014 ACA HIF related to Texas operations will be reimbursed.
  • 6Reimbursement will be recorded in the fourth quarter of 2014, impacting recent financial performance.

Frequently Asked Questions

The main purpose of the agreement is to ensure Centene Corporation, through its subsidiary Superior HealthPlan Inc., is reimbursed for the costs associated with the Affordable Care Act (ACA) annual Health Insurer Fee (HIF) and related tax gross-up for its operations in Texas.

The reimbursement for the 2014 ACA Health Insurer Fee will be recognized in the fourth quarter of 2014.

No, this specific agreement is focused solely on the reimbursement for Centene's operations within Texas.

The Health Insurer Fee (HIF) was an annual fee imposed on certain health insurance providers under the Affordable Care Act (ACA) to help fund the law's provisions. This agreement details how Centene will be reimbursed for this fee in Texas.