CENTENE CO. ST. LOUIS, July 22, 2014 /PRNewswire/ -- Centene Corporation (NYSE: CNC) today announced its financial results for the quarter ended June 30, 2014. The following discussions, with the exception of cash flow information, are in the context of continuing operations.
Premium and Service Revenues (in
millions) $3,741
Consolidated Health Benefits Ratio 88.9%
General & Administrative expense
ratio 8.6%
Diluted earnings per share (EPS) $0.79
Diluted EPS excluding the effect of
the health insurer fee $0.95
Total cash flow from operations (in
millions) $159.4
----------------------------------- ------
Michael F. Neidorff, Centene's Chairman and Chief Executive Officer, stated, "The Company delivered strong top and bottom line growth in the second quarter, driven by the ongoing successful execution of our growth and diversification strategy. We are pleased with the results in the first half of 2014 and have increased our full year guidance to reflect the additional growth and profitability in the business."
Second Quarter Highlights
-- June 30, 2014 at-risk managed care membership of 3,164,500, an increase
of 601,100 members, or 23% compared to the second quarter of 2013.
-- Premium and service revenues for the second quarter of $3.7 billion,
representing 49% growth compared to the second quarter of 2013.
-- Health Benefits Ratio of 88.9% for the second quarter of 2014, compared
to 88.4% in the second quarter of 2013.
-- General and Administrative expense ratio of 8.6% for the second quarter
of 2014, compared to 8.9% in the second quarter of 2013.
-- Operating cash flow of $159.4 million for the second quarter of 2014, or
3.3 times net earnings.
-- Diluted earnings per share of $0.79, or $0.95 excluding a $0.16 impact
associated with the health insurer fee, compared to $0.71 in 2013.
Other Events
-- In July 2014, our Illinois subsidiary, IlliniCare Health, began
operating under a new five-year contract with the Cook County Health and
Hospitals System (CCHHS) to perform third party administrative services
to members enrolled in the CountyCare program, as well as care
coordination, behavioral health, vision care and pharmacy benefit
management services.
-- In July 2014, our Mississippi subsidiary, Magnolia Health, began
operating as one of two contractors under a new statewide managed care
contract serving members enrolled in the Mississippi Coordinated Access
Network program. The program provides for membership expansion
beginning in late 2014.
-- In July 2014, we completed the transaction whereby Community Health
Solutions of America, Inc. (CHS) assigned its contract with the
Louisiana Department of Health and Hospitals under the Bayou Health
Shared Savings Program to our subsidiary, Louisiana Healthcare
Connections.
-- In July 2014, we completed the purchase of a noncontrolling interest in
Ribera Salud S.A., a Spanish health management group. Centene will be a
joint shareholder with Ribera Salud S.A.'s remaining investor, Banco
Sabadell.
-- In April 2014, we issued $300 million 4.75% Senior Notes due May 2022
and entered into interest rate swap agreements, converting the Senior
Notes to a floating rate of interest at the three month LIBOR rate plus
2.27%.
Accreditations & Awards
-- In June and July 2014, our Illinois subsidiary, IlliniCare Health, our
Louisiana subsidiary, Louisiana Healthcare Connections, our Kansas
subsidiary, Sunflower Health Plan, and our Washington subsidiary,
Coordinated Care, all received accreditation from the National Committee
for Quality Assurance.
-- In June 2014, FORTUNE magazine announced Centene's position of #251 in
its annual ranking of America's largest companies by revenue.
-- In June 2014, Centene was added to the Russell 1000 index and Russell
Midcap index.
-- In May 2014, at the Case In Point Platinum Awards, Centene and its
subsidiaries were honored with awards in five categories: Disease
Management/Population Health, Managed Care, Long-Term Care, Pediatric
Case Management and Wellness/Prevention.
-- In May 2014, our Georgia subsidiary, Peach State Health Plan, received
the 2014 National Environmental Leadership Award in Asthma Management
from the U.S. Environmental Protection Agency.
The following table sets forth the Company's membership by state for its managed care organizations:
June 30,
--------
2014 2013
---- ----
Arizona 7,000 23,200
Arkansas 31,100 -
California 131,100 -
Florida 313,800 216,200
Georgia 373,000 316,600
Illinois 29,500 18,000
Indiana 200,500 200,000
Kansas 146,100 137,500
Louisiana 148,600 153,700
Massachusetts 47,200 15,200
Minnesota 9,400 -
Mississippi 97,400 77,300
Missouri 58,700 58,800
New Hampshire 39,500 -
Ohio 225,900 156,700
South Carolina 101,800 88,800
Tennessee 21,300 -
Texas 921,500 960,400
Washington 193,800 67,600
Wisconsin 67,300 73,400
------ ------
Total 3,164,500 2,563,400
========= =========
At June 30, 2014, the Company served 155,800 Medicaid members in Medicaid expansion programs in California, Massachusetts, Ohio and Washington included in the table above. The Company also served 182,200 members at June 30, 2014 under its behavioral health contract in Arizona, compared to 157,100 members at June 30, 2013.
The following table sets forth our membership by line of business:
June 30,
--------
2014 2013
---- ----
Medicaid 2,385,500 1,953,600
CHIP & Foster Care 261,800 273,200
ABD & Medicare 329,700 289,800
Health Insurance Marketplace
(HIM) 75,700 -
Hybrid Programs 17,000 22,400
Long Term Care (LTC) 53,500 24,400
Correctional services 41,300 -
------ ---
Total 3,164,500 2,563,400
========= =========
The following table identifies our dual eligible membership by line of business. The membership tables above include these members.
June 30,
--------
2014 2013
---- ----
ABD 89,300 71,400
LTC 41,800 16,600
Medicare 8,200 5,700
----- -----
Total 139,300 93,700
======= ======
Statement of Operations: Three Months Ended June 30, 2014
-- For the second quarter of 2014, Premium and Service Revenues increased
49% to $3.7 billion from $2.5 billion in the second quarter of 2013.
The increase was primarily as a result of the expansion in Florida,
growth in the AcariaHealth business, the addition of the California
contract, the expansion in Ohio and our participation in the Health
Insurance Marketplaces.
-- Consolidated HBR for the second quarter of 2014, was 88.9%, compared to
88.4% in the same period in 2013, reflecting an increase in higher
acuity membership. Consolidated HBR decreased from 89.3% in the first
quarter of 2014 due to normal seasonality.
-- The following table compares the results for new business and existing
business for the quarters ended June 30,:
2014 2013
---- ----
Premium and Service Revenue
New business 26% 18%
Existing business 74% 82%
HBR
New business 91.8% 90.4%
Existing business 87.9% 88.0%
-- Consolidated G&A expense ratio for the second quarter of 2014 was 8.6%,
compared to 8.9% in the prior year. The year over year decrease
reflects the leveraging of expenses over higher revenue in 2014. The
2013 G&A expense ratio also includes the impact of $0.07 per diluted
share of AcariaHealth transaction costs which increased the 2013 G&A
expense ratio by approximately 20 basis points.
-- Earnings from operations were $92.7 million in the second quarter of
2014 compared to $68.7 million in the second quarter of 2013. Net
earnings attributable to Centene Corporation were $47.2 million in the
second quarter of 2014, compared to $40.3 million in the second quarter
of 2013.
-- Diluted earnings per share of $0.79, or $0.95 excluding a $0.16 impact
associated with the health insurer fee, compared to $0.71 in 2013.
Balance Sheet and Cash Flow
At June 30, 2014, the Company had cash, investments and restricted deposits of $2,402.5 million, including $50.3 million held by its unregulated entities. Medical claims liabilities totaled $1,394.1 million, representing 42.9 days in claims payable. Total debt was $891.0 million, which includes $70.0 million of borrowings on the $500 million revolving credit facility at quarter end. Debt to capitalization was 35.5% at June 30, 2014, excluding the $71.4 million non-recourse mortgage note. Cash flow from operations for the three months ended June 30, 2014, was $159.4 million, or 3.3 times net earnings.
A reconciliation of the Company's change in days in claims payable from the immediately preceding quarter-end is presented below:
Days in claims payable,
March 31, 2014 42.6
Timing of claim payments 0.3
---
Days in claims payable, June
30, 2014 42.9
====
Outlook
The table below depicts the Company's annual guidance for 2014.
Full Year 2014
--------------
Low High
--- ----
Premium and Service Revenues (in
millions) $15,000 $15,500
Diluted EPS $3.70 $3.90
Consolidated Health Benefits Ratio 88.7% 89.2%
General & Administrative expense
ratio 8.5% 9.0%
Effective Tax Rate 49.5% 50.5%
Diluted Shares Outstanding (in
thousands) 60,000 60,400
The guidance in the table above includes the impact of the Illinois CCHHS contract award, the Louisiana transaction with CHS as well as the acquisition of Ribera Salud. The diluted EPS guidance for 2014 includes approximately $0.12 of transaction costs associated with CHS and Ribera Salud, as well as $0.06 related to the USMM acquisition recorded in the first quarter.
Conference Call
As previously announced, the Company will host a conference call Tuesday, July 22, 2014, at 8:30 A.M. (Eastern Time) to review the financial results for the second quarter ended June 30, 2014, and to discuss its business outlook. Michael F. Neidorff and William N. Scheffel will host the conference call.
Investors and other interested parties are invited to listen to the conference call by dialing 1-866-739-7850 in the U.S. and Canada; +1-412-902-6577 from abroad; or via a live, audio webcast on the Company's website at www.centene.com, under the Investors section. Or, participants can register for the conference call in advance by navigating to http://dpregister.com/10048780, to receive a dial-in number upon registration. A webcast replay will be available for on-demand listening shortly after the completion of the call for the next twelve months or until 11:59 PM (Eastern Time) on Tuesday, July 21, 2015, at the aforementioned URL. In addition, a digital audio playback will be available until 9:00 AM Eastern Time on Wednesday, July 30, 2014, by dialing 1-877-344-7529 in the U.S. and Canada, or +1-412-317-0088 from abroad, and entering access code 10048780.
Other Information
The discussion in the third bullet under the heading "Statement of Operations: Three Months Ended June 30, 2014" contains financial information for new and existing businesses. Existing businesses are primarily state markets or significant geographic expansion in an existing state or product that we have managed for four complete quarters. New businesses are primarily new state markets or significant geographic expansion in an existing state or product that conversely, we have not managed for four complete quarters.
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing individuals to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently. The Company uses the presented non-GAAP financial measures internally to allow management to focus on period-to-period changes in the Company's core business operations. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading multi-line healthcare enterprise that provides programs and services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. Many receive benefits provided under Medicaid, including the State Children's Health Insurance Program (CHIP), as well as Aged, Blind or Disabled (ABD), Foster Care and Long Term Care (LTC), in addition to other state-sponsored/hybrid programs, and Medicare (Special Needs Plans). The Company operates local health plans and offers a range of health insurance solutions. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, care management software, correctional systems healthcare, in-home health services, life and health management, managed vision, pharmacy benefits management, specialty pharmacy and telehealth services.
The information provided in this press release contains forward-looking statements that relate to future events and future financial performance of Centene. Subsequent events and developments may cause the Company's estimates to change. The Company disclaims any obligation to update this forward-looking financial information in the future. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause Centene's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Actual results may differ from projections or estimates due to a variety of important factors, including Centene's ability to accurately predict and effectively manage health benefits and other operating expenses and reserves; competition; membership and revenue projections; timing of regulatory contract approval; changes in healthcare practices; changes in federal or state laws or regulations, including the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act and any regulations enacted thereunder; changes in expected contract start dates; changes in expected closing dates, estimated purchase price and accretion for acquisitions; inflation; provider and state contract changes; new technologies; advances in medicine; reduction in provider payments by governmental payors; major epidemics; disasters and numerous other factors affecting the delivery and cost of healthcare; the expiration, cancellation or suspension of our Medicare or Medicaid managed care contracts by federal or state governments; the outcome of pending legal proceedings; availability of debt and equity financing, on terms that are favorable to us; and general economic and market conditions, as well as those factors disclosed in the Company's publicly filed documents.
[Tables Follow]
CENTENE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30, December 31,
2014 2013
--------- -------------
ASSETS
Current assets:
Cash and cash equivalents of continuing
operations $1,199,784 $974,304
Cash and cash equivalents of
discontinued operations 59,013 63,769
------ ------
Total cash and cash equivalents 1,258,797 1,038,073
Premium and related receivables 610,969 428,570
Short term investments 127,348 102,126
Other current assets 313,946 217,661
Other current assets of discontinued
operations 13,826 13,743
------ ------
Total current assets 2,324,886 1,800,173
Long term investments 996,965 791,900
Restricted deposits 78,442 46,946
Property, software and equipment, net 423,905 395,407
Goodwill 642,613 348,432
Intangible assets, net 81,359 48,780
Other long term assets 107,967 59,357
Long term assets of discontinued
operations 26,430 38,305
------ ------
Total assets $4,682,567 $3,529,300
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Medical claims liability $1,394,115 $1,111,709
Accounts payable and accrued expenses 670,343 375,862
Unearned revenue 22,472 38,191
Current portion of long term debt 6,135 3,065
Current liabilities of discontinued
operations 24,642 30,294
------ ------
Total current liabilities 2,117,707 1,559,121
Long term debt 884,890 665,697
Other long term liabilities 73,897 60,015
Long term liabilities of discontinued
operations 451 1,028
--- -----
Total liabilities 3,076,945 2,285,861
Commitments and contingencies
Redeemable noncontrolling interest 119,671 -
Stockholders' equity:
Common stock, $.001 par value;
authorized 200,000,000 shares;
61,265,156 issued and 57,837,919
outstanding at June 30, 2014, and
58,673,215 issued and 55,319,239
outstanding at December 31, 2013 61 59
Additional paid-in capital 754,637 594,326
Accumulated other comprehensive income:
Unrealized gain (loss) on investments,
net of tax 2,214 (2,620)
Retained earnings 813,765 731,919
Treasury stock, at cost (3,427,237 and
3,353,976 shares, respectively) (94,512) (89,643)
------- -------
Total Centene stockholders' equity 1,476,165 1,234,041
Noncontrolling interest 9,786 9,398
----- -----
Total stockholders' equity 1,485,951 1,243,439
--------- ---------
Total liabilities and stockholders'
equity $4,682,567 $3,529,300
========== ==========
CENTENE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2014 2013 2014 2013
---- ---- ---- ----
Revenues:
Premium $3,331,058 $2,413,312 $6,401,945 $4,801,951
Service 410,029 105,599 691,203 138,793
------- ------- ------- -------
Premium and service
revenues 3,741,087 2,518,911 7,093,148 4,940,744
Premium tax and health
insurer fee 282,613 91,628 390,440 195,277
------- ------ ------- -------
Total revenues 4,023,700 2,610,539 7,483,588 5,136,021
--------- --------- --------- ---------
Expenses:
Medical costs 2,960,101 2,134,283 5,702,554 4,288,829
Cost of services 365,888 93,300 608,172 118,365
General and administrative
expenses 321,042 223,459 616,554 426,755
Premium tax expense 252,669 90,760 330,947 193,735
Health insurer fee expense 31,328 - 62,655 -
------ --- ------ ---
Total operating expenses 3,931,028 2,541,802 7,320,882 5,027,684
--------- --------- --------- ---------
Earnings from operations 92,672 68,737 162,706 108,337
Other income (expense):
Investment and other income 7,252 4,078 11,976 8,342
Interest expense (8,604) (7,033) (15,627) (13,658)
------ ------ ------- -------
Earnings from continuing
operations, before income
tax expense 91,320 65,782 159,055 103,021
Income tax expense 44,874 25,966 79,429 40,657
------ ------ ------ ------
Earnings from continuing
operations, net of income
tax expense 46,446 39,816 79,626 62,364
Discontinued operations,
net of income tax expense
(benefit) of $1,461,
$(698), $1,453, and
$(350), respectively 1,680 (805) 847 (442)
Net earnings 48,126 39,011 80,473 61,922
Noncontrolling interest (737) (473) (1,373) (564)
---- ---- ------ ----
Net earnings attributable
to Centene Corporation $48,863 $39,484 $81,846 $62,486
======= ======= ======= =======
Amounts attributable to Centene Corporation
common shareholders:
Earnings from continuing
operations, net of income
tax expense $47,183 $40,289 $80,999 $62,928
Discontinued operations,
net of income tax expense
(benefit) 1,680 (805) 847 (442)
Net earnings $48,863 $39,484 $81,846 $62,486
======= ======= ======= =======
Net earnings (loss) per common share
attributable to Centene Corporation:
Basic:
Continuing operations $0.82 $0.74 $1.41 $1.18
Discontinued operations 0.03 (0.02) 0.01 (0.01)
Basic earnings per common
share $0.85 $0.72 $1.42 $1.17
===== ===== ===== =====
Diluted:
Continuing operations $0.79 $0.71 $1.36 $1.14
Discontinued operations 0.03 (0.01) 0.01 (0.01)
Diluted earnings per common
share $0.82 $0.70 $1.37 $1.13
===== ===== ===== =====
Weighted average number of common
shares outstanding:
Basic 57,758,683 54,529,036 57,622,039 53,449,077
Diluted 59,717,258 56,601,660 59,547,420 55,448,396
CENTENE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June 30,
-------------------------
2014 2013
---- ----
Cash flows from operating
activities:
Net earnings $80,473 $61,922
Adjustments to reconcile net
earnings to net cash provided by
operating activities
Depreciation and
amortization 42,101 32,928
Stock compensation
expense 22,750 16,955
Deferred income
taxes (11,258) 10,715
Changes in assets and liabilities
Premium and
related
receivables (160,714) (71,230)
Other current
assets 28,826 (35,879)
Other assets (28,733) (38,191)
Medical claims
liabilities 284,134 111,625
Unearned revenue (18,066) (12,068)
Accounts payable
and accrued
expenses 160,128 (1,488)
Other operating
activities 12,248 5,650
------ -----
Net cash provided
by operating
activities 411,889 80,939
------- ------
Cash flows from investing
activities:
Capital
expenditures (41,568) (30,057)
Purchases of
investments (475,347) (537,590)
Sales and
maturities of
investments 221,342 358,971
Investments in
acquisitions, net
of cash acquired (94,004) (66,832)
------- -------
Net cash used in
investing
activities (389,577) (275,508)
-------- --------
Cash flows from financing
activities:
Proceeds from
exercise of stock
options 3,670 3,867
Proceeds from
borrowings 1,145,000 30,000
Payment of long-
term debt (945,892) (10,118)
Proceeds from
stock offering - 15,239
Excess tax
benefits from
stock
compensation 1,115 1,113
Common stock
repurchases (4,869) (1,105)
Contribution from
noncontrolling
interest 5,407 3,920
Debt issue costs (6,019) (3,587)
------ ------
Net cash provided
by financing
activities 198,412 39,329
------- ------
Net increase
(decrease) in
cash and cash
equivalents 220,724 (155,240)
------- --------
Cash and cash
equivalents,
beginning of
period 1,038,073 843,952
--------- -------
Cash and cash
equivalents, end
of period $1,258,797 $688,712
========== ========
Supplemental disclosures of cash
flow information:
Interest paid $16,439 $15,170
Income taxes paid 110,118 21,694
Equity issued in
connection with
acquisition 132,371 75,438
CENTENE CORPORATION
SUPPLEMENTAL FINANCIAL DATA FROM CONTINUING OPERATIONS
Q2 Q1 Q4 Q3 Q2
2014 2014 2013 2013 2013
---- ---- ---- ---- ----
AT-RISK MEMBERSHIP
Managed Care:
Arizona 7,000 7,100 7,100 23,700 23,200
Arkansas 31,100 16,400 - - -
California 131,100 118,100 97,200 - -
Florida 313,800 230,300 222,000 217,800 216,200
Georgia 373,000 331,400 318,700 314,100 316,600
Illinois 29,500 22,400 22,300 22,800 18,000
Indiana 200,500 198,700 195,500 198,400 200,000
Kansas 146,100 145,000 139,900 137,700 137,500
Louisiana 148,600 149,800 152,300 152,600 153,700
Massachusetts 47,200 50,800 22,600 23,200 15,200
Minnesota 9,400 9,400 - - -
Mississippi 97,400 85,400 78,300 76,900 77,300
Missouri 58,700 58,100 59,200 58,200 58,800
New Hampshire 39,500 37,100 33,600 - -
Ohio 225,900 181,800 173,200 170,900 156,700
South Carolina 101,800 96,300 91,900 89,400 88,800
Tennessee 21,300 21,100 20,700 20,400 -
Texas 921,500 904,000 935,100 957,300 960,400
Washington 193,800 151,700 82,100 77,100 67,600
Wisconsin 67,300 70,800 71,500 72,000 73,400
TOTAL 3,164,500 2,885,700 2,723,200 2,612,500 2,563,400
========= ========= ========= ========= =========
Medicaid 2,385,500 2,169,100 2,054,700 1,953,300 1,953,600
CHIP & Foster Care 261,800 269,200 275,100 274,900 273,200
ABD & Medicare 329,700 300,500 305,300 302,000 289,800
HIM 75,700 39,700 - - -
Hybrid Programs 17,000 14,400 19,000 19,600 22,400
LTC 53,500 51,800 37,800 31,600 24,400
Correctional Services 41,300 41,000 31,300 31,100 -
TOTAL 3,164,500 2,885,700 2,723,200 2,612,500 2,563,400
========= ========= ========= ========= =========
Specialty Services(a):
Cenpatico Behavioral
Health Arizona 182,200 162,700 156,600 160,700 157,100
(a) Includes external membership
only.
REVENUE PER MEMBER PER
MONTH(b) $359 $355 $335 $328 $306
CLAIMS(b)
Period-end inventory 745,400 808,500 622,200 698,900 703,400
Average inventory 584,000 555,400 511,700 505,800 510,000
Period-end inventory
per member 0.24 0.28 0.23 0.27 0.27
(b) Revenue per member and claims information are presented for the Managed Care at-risk members.
NUMBER OF EMPLOYEES 10,500 9,500 8,800 8,200 7,900
Q2
2014 Q1
2014 Q4
2013 Q3
2013 Q2
2013
--------- --------- --------- --------- ---------
DAYS IN CLAIMS PAYABLE
(c) 42.9 42.6 42.4 40.6 41.5
(c) Days in Claims Payable is a calculation of Medical Claims Liabilities at the end of the period divided by average claims expense per calendar day for such period.
CASH, INVESTMENTS AND RESTRICTED
DEPOSITS (in millions)
Regulated $2,352.3 $2,166.4 $1,870.6 $1,612.9 $1,502.9
Unregulated 50.3 49.3 44.7 37.6 33.8
---- ---- ---- ---- ----
TOTAL $2,402.6 $2,215.7 $1,915.3 $1,650.5 $1,536.7
======== ======== ======== ======== ========
DEBT TO CAPITALIZATION 37.5% 36.5% 35.0% 30.5% 32.9%
DEBT TO CAPITALIZATION
EXCLUDING NON-RECOURSE
DEBT(d) 35.5% 34.4% 32.4% 27.4% 29.8%
Debt to Capitalization is calculated as follows: total debt divided by (total debt + total equity).
(d) The non-recourse debt represents the Company's mortgage note payable ($71.4 million at June 30, 2014).
Operating Ratios:
Three Months Ended Six Months Ended
June 30,
June 30,
------------------- -----------------
2014 2013 2014 2013
---- ---- ---- ----
Health Benefits Ratios:
Medicaid, CHIP,
Foster Care &
HIM 84.7% 88.4% 85.8% 89.6%
ABD, LTC &
Medicare 94.9 89.1 94.0 89.6
Specialty
Services 80.4 82.6 84.0 83.0
Total 88.9 88.4 89.1 89.3
Total General &
Administrative
Expense Ratio 8.6% 8.9% 8.7% 8.6%
MEDICAL CLAIMS LIABILITY (In thousands)
The changes in medical claims liability are summarized as follows:
Balance, June 30, 2013 $972,641
Incurred related to:
Current period 10,541,171
Prior period (132,805)
--------
Total incurred 10,408,366
==========
Paid related to:
Current period 9,171,457
Prior period 815,435
-------
Total paid 9,986,892
=========
Balance, June 30, 2014 $1,394,115
==========
SOURCE Centene Corporation
