Centene Corporation Q4 2008 Earnings Call Transcript

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2009-02-10 08:29:06.0

Tags: Goldman Sachs & Co., Call Transcript, Earnings, Operational Accounting, Finance, Seeking Alpha, Centene Corp.

Question-and-Answer Session

Operator

(Operator Instructions) And your first question comes from Daryn Miller from Goldman Sachs, your line is now open.

Daryn Miller - Goldman Sachs

Good morning.

Michael Neidorff

Good morning.

Daryn Miller - Goldman Sachs

Hey, a quick question, is it possible to get the enrollment number for New Jersey?

Eric Slusser

Yes, 55,000 members approximately.

Daryn Miller - Goldman Sachs

And then can you guys talk specifically on Ohio, how much MCR improvement did you see sequentially in the fourth quarter in the ABD population?

Eric Slusser

Fourth quarter Ohio was essentially flat from third quarter. As we noted, we saw a significant improvement from where we were a year ago at this time, but a lot of that improvement was first quarter to second quarter to third quarter. Again, it was relatively flat to the fourth quarter.

Daryn Miller - Goldman Sachs

And that was ABD or that was the entire population?

Eric Slusser

That was ABD.

Daryn Miller - Goldman Sachs

And then, looking at what you’re seeing so far in 2009 in terms of enrollment growth, can you guys talk about that a little bit?

Michael Neidorff

Like I said, we would really like to talk about enrollment at the end of the quarter, Darren, versus what’s occurring in the quarter because it varies month to month and you’re reconciling the premium received with the members. So I think it might be a little early to talk about that.

Daryn Miller - Goldman Sachs

Okay, and then just in terms of the period end claims as per member, it continues to come down. Can you just talk about what’s driving that down?

Eric Slusser

Yes, that’s driven a lot by timing of payments, because that’s claims that have been submitted for payment. It just so happened with the timing around year end that all of our plans had a check run at the end of December, around the holidays. In addition, we had one state that has changed their compliance requirements for processing first claim and they reduced that requirement by nine days. Those two items together are the main drivers of that reduction.

Daryn Miller - Goldman Sachs

Which plan pushed that change through?

Eric Slusser

Indiana.

Daryn Miller - Goldman Sachs

And then just looking at the trend over the course of 2008, it continued to come down over the year. What was driving that longer term trend?

 

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