Centene Corporation Q2 2009 Earnings Call Transcript

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2009-07-28 10:29:11.0

Tags: Goldman Sachs Group Inc., Deutsche Bank AG, Call Transcript, Earnings, Healthcare, Vertical Industries, Benefits, Human Resources, Seeking Alpha, Centene Corp.

Question-and-Answer Session

Operator

Okay. (Operator instructions). Your first question comes from Daryn Miller from Goldman Sachs. Your call is open.

Daryn Miller – Goldman Sachs

Hi, good morning.

Michael Neidorff

Good morning.

Daryn Miller – Goldman Sachs

Hi. Quick questions. I'm sorry if I missed it, did you guys make any comment on the duration effect some competitors are seeing, higher utilization, new lives coming into the Medicaid program?

Michael Neidorff

We took a look at it and while there is some, a few basis points here and there in some markets, there's nothing meaningful there and we just – we have not seen it to that extent. Now I bifurcate that and distinguish it where we have a brand new market we enter of course, there you have the case of new members having not had any healthcare, a lot of pent up demand there. And that is why we book at 90% and will roll it through anywhere from two to three, four quarters. But in the existing market, the additions we have seen, we have taken a look at it, and we're not seeing it to any meaningful effect.

Daryn Miller – Goldman Sachs

That is great. Again sorry if I missed this, did you guys comment on Georgia rates?

Michael Neidorff

We did not. We are still in negotiations with it. We believe that the state is working hard to try and resolve it earlier all the time but I'm not prepared to say if it is going to fall this quarter or next quarter, but we should see it before the end of the year.

Daryn Miller – Goldman Sachs

Okay. Would you expect that to be retro July 1?

Michael Neidorff

Yes, it will be retro to July 1.

Daryn Miller – Goldman Sachs

Great. Thank you very much guys.

Michael Neidorff

Thank you.

Operator

Your next question is from Greg Genova [ph] from Deutsche Bank. Your line is now open.

Greg Genova – Deutsche Bank

Hi. Good morning.

Michael Neidorff

Good morning.

Greg Genova – Deutsche Bank

Can you talk about Wisconsin? I know the state has talked about making some changes there, including changing, putting the program out to bid next year, can you talk about what is going on there, what you guys are expecting?

Michael Neidorff

We have been in discussions with them. The industry has been in discussions with them. Nothing has been stated in terms of what they actually will do. The last talks were a RFP to be effective for July 10 which expired. I mean a lot of the states we have procurement where we do RFPs on an ongoing basis. So that is where it is now. Mark, would like to add more to it? Mark Eggert, who head up health plans.

 

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