Centene National MCO Analyzer 2011
Analyst: Taylor Holliday
Centene Corp. is on a roll, posting ever-higher enrollment, revenues and earnings as it takes advantage of the nationwide trend of moving Medicaid members to managed care. The Fortune 500 company has had more success than any other Medicaid HMO in winning this new business, scoring contracts in each of its last seven bids. Wall Street analysts report that the past 28 Medicaid requests for proposals have put more than 10 million lives up for bid, and Centene has been awarded 1.4 million lives. By the end of 2012, Centene will add more than 1 million new pharmacy lives through new state contracts and as states reverse the trend of carving pharmacy benefits out of managed care.
Questions Answered In This Report:
Centene Corp. has recently won contracts to insure Medicaid beneficiaries in Kentucky and Louisiana and will expand its presence in Texas. What factors have led to the company's success in winning the contracts? What segment of the Medicaid population is part of the contracts?
Centene has a head start among competitors in preparing for the upcoming health benefits exchanges. How has Centene approached this expansion business? What is the potential for growth in the exchange business? What are the risks?
The specialty services segment of Centene grew to account for 23 percent of the company’s total revenue in 2010 from 1 percent in 2004. How does its PBM operation, US Script, fit into its expansion? What are the other components of its specialty division and how do they support the company's push into long-term care?
Analysis of state Medicaid documents, interviews and data from HealthLeaders-InterStudy, Centene, Centers for Medicare & Medicaid Services
Companies Mentioned In This Report:
- Centene Corp.
- CVS Caremark
- Nurtur Health