Centene Corporation · NYSE:CNC
Centene — Corporate Update (July 2006)
5 slides from Centene's corporate update, Jul 26, 2006
Slide 1: Claims Liabilities: Change in Estimates for Q1 2006
Claims Liabilities: Change in Estimates for Q1 2006 July 25, 2006 Exhibit 99.1
Slide 2: Common Themes Across Markets
• Increased physician costs. • Changes in member demographics. • Injectible drug compounds avoided prior authorization requirements when dosed in physician offices. • Underestimation of inpatient bed day costs due primarily to deteriorating conditions of complex cases. 2 Common Themes Across Markets
Slide 3: Indiana
$ 3,690 Total There is a significant increase in injectibles due to Synagis and Somatropin (growth hormone). Additionally, home infusion increased with new members receiving hemophilia blood factors. 1,066 Other This increase is driven by an increase in labor/false labor. 100 Emergency Department Th
Slide 4: Texas
$ 2,234 Total Two catastrophic newborns significantly increased home health costs. 495 Other 121 Emergency Department The increase in professional services is significantly attributable to an increase in the number of pregnancies/deliveries. Additionally, Synagis utilization increased approximately
Slide 5: Improving the medical claims liability estimation process
In order to improve the medical claims liability estimatation process, we have or are in the process of implementing the following: 1. Retraining of nurses on bed day estimation process and system reporting. 2. Mandating daily rounds by staff nurses at significant hospitals. 3. Increased scrutiny of
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