Centene Corporation is a large publicly traded company and a multi-line managed care enterprise that serves as a major intermediary for both government-sponsored and privately insured health care programs. It is a healthcare insurer that focuses on managed care for uninsured, underinsured, and low-income individuals. Centene is the second-largest publicly traded corporation based in the state of Missouri. It ranked No. 61 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
Business segments
The main lines of Centene include:
Medicaid, where it is the largest provider in the country as of 2018
Centene also contracts with other healthcare and commercial organizations to provide specialty services, including behavioral health care services, case management software, correctional insurance, in-home health services, life and health management, vision, pharmacy benefits management, and telehealth services.
History
Founded as a single health plan by Elizabeth “Betty” Brinn in Milwaukee, Wisconsin in 1984, Centene has established itself as a national leader in healthcare services. In 1996, Michael F. Neidorff joined the company as chief executive. Centene has grown to become a $60 billion member of the Fortune 500 trading on the New York Stock Exchange. With over 65,000 employees across the country, Centene operates health plans that serve 12.3 million members in 29 states and 2 international markets and offers health insurance to other healthcare and commercial organizations. On July 2, 2015, Centene announced it would acquire Health Net. At announcement, it was estimated Health Net shareholders would own 29% of the combined company. The merger was finalized in March 2016 and Health Net shareholders received 0.622 shares of Centene common stock and $28.25 in cash for each share at closing, making the total transaction value about $6 billion, including assumption of debt. After its acquisition of Health Net, Centene now provides healthcare to over 11 million people. Centene currently ranks #51 on the Fortune 500 & #244 on the Fortune Global 500 List." On September 12, 2017, it was announced that Centene Corp. would acquire the nonprofit insurer Fidelis Care for US $3.75 billion. On March 27, 2019, Centene acquired WellCare for US $17 billion. As of 2020, Centene is the largest provider of government-sponsored health plans with roughly 22 million members. In April of 2019, Centene announced a partnership with the Washington University School of Medicine designed to accelerate research into treatments for Alzheimer’s disease, breast cancer, diabetes and obesity. As part of the partnership, Centene will fund up to $100 million over 10 years in research at Washington University. On July 1, 2020, Centene announced a $1 billion investment in a 130-acre campus located in Charlotte’s University City area. The campus will serve as the company's East Coast headquarters as well as its main technology hub and will eventually employ over 6,000 people.
Centene's health plans provide education and outreach programs.
Controversies
In a Fox News article dated July 9, 2014, Superior HealthPlan of Texas was alleged to have denied coverage of an infant's surgery for brain cancer at Texas Children's Hospital where it was alleged to have previously paid claims for the infant. Part of the source of the controversy lay in reports that that facility had a notably higher survival rate for such operations. Superior HealthPlan initially claimed that it did not cover Texas Children's Hospital and that it has directed the family to a different facility. Superior HealthPlan said it was "confident" the family would find capable in-network providers. However, three days later, on July 12, 2014, Fox News reported that Superior HealthPlan had reversed its decision and had consented to cover the needed surgery at Texas Children's Hospital. In that follow-up article, it was reported that the surgery was successful. In 2018, a class action lawsuit was filed against Centene Corp. regarding their Ambetter marketplace healthcare plans, alleging that the company has misled customers with physician coverage networks that are narrower than advertised.
